In China, luxury consumption seems to have already overcome the coronavirus crisis: according to Prada, sales are once again reaching a level well above that of 2019.
More than 60% growth
Prada sales are recovering strongly in China: since the reopening of the stores, turnover is well above last year’s level, CEO Patrizio Bertelli told Reuters. The latter also says that, since the beginning of the year, the company has recorded double-digit growth, despite the health crisis.
In the months after March, when the containment in China began to ease, sales growth even reached more than 60%. Bertelli also believes that this trend will continue in the coming months. He added that sales on Chinese Valentine’s Day, which took place on 25 August, broke the Italian luxury brand’s records.
Is China limiting the damage of the coronavirus?
In the first half of the year, sales fell by 40% at constant exchange rates worldwide, with the Asia-Pacific region accounting for 44% of sales. However, in June, retail sales in mainland China were 60% higher than in the previous year, and in July Prada even recorded 66% higher sales.
Consultancy firm Bain expects total turnover in the luxury sector to fall by 35% this year, but luxury groups are hoping that a strong recovery in China can limit the damage. Indeed, it is estimated that 37% of the world’s luxury purchases in 2019 were made by Chinese consumers. However, the bulk of these purchases were made when travelling abroad, which is currently not the case.
