The luxury sector has been greatly affected by the Covid 19 outbreak that has rocked the world with no prior warning. Fashion shows have been cancelled, luxury boutiques have been forced to close their doors with everything put on hold until further notice. Employees have been furloughed due to the pandemic and the future remains uncertain with fear that things might never go back to normal in the retail sector.
Plot twist. An Hermès boutique in the city of Guangzhou in China has boasted £2.1M in sales after one day of reopening. Rare bags such as diamond Birkins and Himalayas were sent to the location to meet demands of ultra high net worth individuals.
Image Courtesy of : (Reuters/Mario Anzuoni)
Chinese VIPS and socialites didn't miss out on the opportunity to splurge which resulted in a record breaking single day tally of £2.1M.
Not only is China a huge economic front but also is the home to the worlds biggest spenders in the luxury fashion industry. Axel Dumas, Hermès CEO, stated that China's coronavirus outbreak affected the company because it happened to "an important country for our industry at an important time.
So the question here is, are people revenge buying? Revenge buying usually happens when people experience harsh restrictions and feel that they deserve to pamper themselves as a way to cope with the conditions. Many fashion forecasters predicted that revenge buying might be common but will only be a temporary fix.
However, it can't be denied that the much needed boost in China doesn't give us more hope that things will flourish again and the luxury sector will bounce back in no time.