Global luxury goods sales set for largest ever fall in Bain forecast

MILAN, Nov 18 (Reuters): Sales of luxury goods worldwide are set to fall by 23 per cent to 217 billion euros ($258 billion) this year, their largest ever drop and first since 2009, due to the fallout from the coronavirus pandemic, consultancy Bain said on Wednesday.

The expected decline, despite a strong sales recovery in China, is at the lower end of a 20 per cent to 35 per cent range which Bain's closely followed industry forecast had predicted in May.

That is due to a bigger than expected rebound during the summer, when lockdown measures were lifted or eased across the world and stores selling high-end handbags, clothes, jewellery and watches were reopened.

However, a resurgence of the pandemic in Europe and the United States since October has led to new restrictions and shop closures while uncertainty linked to the US elections also weighed on consumer sentiment.

The only bright spot is China, where sales have surged since it began to emerge from the health crisis in the spring.