Sales of personal luxury are set to be significantly affected by the pandemic, although there is marked difference between different types of products within the category – beauty and personal care products, for example, are for many consumers an essential part of a daily beauty regime, and performed far better than jewellery. Sales decline across personal luxury is being driven by a number of factors.
High ticket products have been hit hardest by the pandemic, with luxury timepieces set to see the sharpest fall in value sales in 2020. In part, this is a reflection of the high prices alone, as uncertainty around the economic impact of the virus is making any consumers think twice before buying them.
The sharp fall-off in purchasing power of aspirational middle-class consumers as a result of the pandemic is seeing people trade down in personal luxury. Weakened consumer confidence and rising unemployment rate is driving many of these consumers to switch to mass or semi-premium alternative to luxury goods.
Value sales in current terms of personal luxury are expected to bounce back fairly quickly in Romania over the forecast period, largely as a result of the reopening of the economy. Some categories will perform better than others – luxury timepieces are set to see the strongest growth in current value terms in 2021, mostly because it is set to see the sharpest decline in 2020.
Counterintuitively, personal luxury products with less necessity are set to see the fastest recovery from the downturn in volume and value sales seen in 2020. Products including luxury eyewear, super premium beauty and personal care and luxury writing instruments and stationery will take to achieve pre-pandemic sales levels.
Younger affluent millennials, who comprise around half of all personal luxury consumers in Romania, will become increasingly important consumer groups for personal luxury over the forecast period. Millennials are most likely to track global luxury trends, and are avid consumers of fashion and technology, frequently via online social media platforms.
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Understand the latest market trends and future growth opportunities for the Personal Luxury industry in Romania with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Personal Luxury research and analysis database.
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