As highlighted by Federica Levato, partner at Bain & Co., where she leads the EMEA fashion luxury goods vertical, the pandemic underscored that the key factors in the sector’s resilience have been the brands’ exposure to China — where in 2021 the demand for luxury goods increased 97 percent compared to 2019; their ability to engage and serve local consumers everywhere; their multifaceted value proposition with an offering covering different price points, as well as the availability of a distribution model based on different touchpoints.

“Brands should think in terms of touchpoint ecosystem, where each channel has a different role in influencing the consumer’s journey,” said Levato, highlighting that online and the monobrand stores are actually boosting the business of luxury brands.

According to the research, in two years the online channel almost doubled in size. If in 2019 online in the luxury segment accounted for 12 percent of revenues, in 2021, it accounts for 22 percent of the business, totaling 62 billion euros. While the wholesale channel is declining, retail is progressively growing. In 2019, it accounted for 40 percent of the luxury market, but by 2025, it’s expected to account for between 50 and 55 percent.