Luggage sales globally were heavily impacted by the pandemic, as travel halted. As COVID-19 restrictions eased in 2021, travel returned, and luggage sales rebounded. However, in 2022, inflationary pressures, the war in Ukraine and continued restrictions in China hampered the full recovery questioning if the industry will return to pre-pandemic levels as initially expected.
As the pandemic and the war in Ukraine have placed intense stress on global supply chains, purely efficiency-based models have shown their limits in the fashion industry. Since then, luxury and fashion players have pivoted their business models to build their resilience for tomorrow, and beat the impact of inflation, while they also need to anticipate regulatory shifts in terms of sustainability to plan for the future.
As the pressure grows from both consumers and regulators to make the fashion industry more circular, retailers and brands need to adapt their distribution and retail strategies by encouraging repairing, promoting recycling and facilitating resale and rental.
Retail in the Philippines has been showing great promise, with players encouraged by its high growth rate across various retail categories. This is particularly true in luxury goods, with the Philippines set to be the fast-growing market in Southeast Asia for this sector. In addition, retail e-commerce growth rates in the Philippines are set to surpass all other markets in the region.
The Latin American Fashion industry was hit hard by the pandemic, but following two years of strong performance, sales have returned to pre-pandemic levels.
As the global economy faces slower growth and high inflation, the challenges and uncertainties facing both luxury consumers and key players are escalating. The extraordinary global disruptions over the last few years have led to the rise of a new economic reality that is shaping the consumption of luxury goods and business outcomes today, but is similarly setting the benchmark of what we should expect for the short-term outlook.