II. MARKET SECTOR a. current market analysis (p

current market analysis

Another explanation for this great economic loss is the inability for international clients to travel. Chinese customers purchasing goods outside their home countries represents 30% of the industries total revenue (McKinsey, 2020).

However, despite an expected loss of 10 billion euros for luxury brands (Annachiara Biondi2020), the luxury apparel and footwear industry could be reaching 107,969 million US$ in 2021, representing an annual growth of 4,8% (Statista, 2020). In this saturated and competitive market reigns a situation of oligopoly where an elite number of companies dominate and predict the future trends for the industry.

Slowly taken over by value chains and high-street brands, luxury brands’ creative integrity and designs are copied. These affordable clothes at interestingly low prices attract a wide audience. These brands creativity is being jeopardized by high-street value chains. A similar design and garment can be bought at a much more affordable price.

Unable to efficiently produce collections caused by the shutdown of Italian textile and leather manufactories (McKinsey, 2020) some companies will have to find a new way to retain the current loyal customers with strong digitization enhancements, effective communications and a practical e-commerce site.