The Hermes logo sits on the exterior of the Hermes luxury goods store on George IV avenue, in Paris, France. Demand for luxury goods will rebound next year following a a severe drop in 2020 due to the Covid-19 pandemic, according to Bank of America. Bloomberg.
The Hermes logo sits on the exterior of the Hermes luxury goods store on George IV avenue, in Paris, France. Demand for luxury goods will rebound next year following a a severe drop in 2020 due to the Covid-19 pandemic, according to Bank of America. Bloomberg.
The Hermes logo sits on the exterior of the Hermes luxury goods store on George IV avenue, in Paris, France. Demand for luxury goods will rebound next year following a a severe drop in 2020 due to the Covid-19 pandemic, according to Bank of America. Bloomberg.
The Hermes logo sits on the exterior of the Hermes luxury goods store on George IV avenue, in Paris, France. Demand for luxury goods will rebound next year following a a severe drop in 2020 due to the

Global luxury goods sales to rebound following pandemic-induced decline, BofA says


Deena Kamel
  • English
  • Arabic

Global sales of luxury goods will record a "strong rebound" next year following a a severe drop in 2020 due to the Covid-19 pandemic, according to Bank of America (BofA).

Revenue is expected to grow 16.6 per cent next year, from a decline of 16.9 per cent in 2020, as governments ease restrictions aimed at curbing the spread of the virus, according to BofA global research estimates.

"The expected revenue decline in 2020 is a result of the impact of Covid-19 on the sector. Given the extra-ordinary and 'one-off' nature of this headwind, we expect a strong rebound in revenue growth in 2021-22," the lender said in an industry report.

"We believe the underlying demand for luxury product remains solid, as shown by the strong bounce back in local consumption as countries come out of lockdown."

The coronavirus crisis–which first appeared in China before spreading to Europe and the US–kept consumers at home and forced retailers to shut their stores, crushing years of growth at high-end brands.

In the second quarter of 2020, demand for luxury goods will drop before recovering in the second half of the year, according to BofA's estimates.

The bank's Luxury Demand Indicator is down 50 per cent in the second quarter, from 19 per cent in the first quarter. In terms of regions, Europe was the worst hit, with demand shrinking due to shutdowns and drop in tourism.

Meanwhile, sector revenue for the companies that BofA covers fell 42 per cent in the second quarter, from a decline of 19 per cent in the first quarter, as a result of large-scale store closures across Europe and the US.

In the third quarter of 2020, BofA expects an improvement in luxury sales, with the decline in revenue narrowing to a 7 per cent drop, it said.

"In Q3, we expect a significant improvement in revenue trends/sales densities as retail stores reopen," the report said. "European and American consumers both appear back to growth in July, while the Chinese consumer overall still remains negative."

UAE currency: the story behind the money in your pockets
The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

The Buckingham Murders

Starring: Kareena Kapoor Khan, Ash Tandon, Prabhleen Sandhu

Director: Hansal Mehta

Rating: 4 / 5

The five pillars of Islam
The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Part three: an affection for classic cars lives on

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

Yemen's Bahais and the charges they often face

The Baha'i faith was made known in Yemen in the 19th century, first introduced by an Iranian man named Ali Muhammad Al Shirazi, considered the Herald of the Baha'i faith in 1844.

The Baha'i faith has had a growing number of followers in recent years despite persecution in Yemen and Iran. 

Today, some 2,000 Baha'is reside in Yemen, according to Insaf. 

"The 24 defendants represented by the House of Justice, which has intelligence outfits from the uS and the UK working to carry out an espionage scheme in Yemen under the guise of religion.. aimed to impant and found the Bahai sect on Yemeni soil by bringing foreign Bahais from abroad and homing them in Yemen," the charge sheet said. 

Baha'Ullah, the founder of the Bahai faith, was exiled by the Ottoman Empire in 1868 from Iran to what is now Israel. Now, the Bahai faith's highest governing body, known as the Universal House of Justice, is based in the Israeli city of Haifa, which the Bahais turn towards during prayer. 

The Houthis cite this as collective "evidence" of Bahai "links" to Israel - which the Houthis consider their enemy. 

 

AT%20A%20GLANCE
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The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part one: how cars came to the UAE

 

 

 

COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%3A%20%3C%2Fstrong%3EGrowdash%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EJuly%202022%0D%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3ESean%20Trevaskis%20and%20Enver%20Sorkun%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%2C%20UAE%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%20%3C%2Fstrong%3ERestaurant%20technology%0D%3Cbr%3E%3Cstrong%3EFunding%20so%20far%3A%3C%2Fstrong%3E%20%24750%2C000%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFlat6Labs%2C%20Plus%20VC%2C%20Judah%20VC%2C%20TPN%20Investments%20and%20angel%20investors%2C%20including%20former%20Talabat%20chief%20executive%20Abdulhamid%20Alomar%2C%20and%20entrepreneur%20Zeid%20Husban%3C%2Fp%3E%0A
The specs

Engine: 2.0-litre 4-cylinder turbo

Power: 240hp at 5,500rpm

Torque: 390Nm at 3,000rpm

Transmission: eight-speed auto

Price: from Dh122,745

On sale: now

Who has been sanctioned?

Daniella Weiss and Nachala
Described as 'the grandmother of the settler movement', she has encouraged the expansion of settlements for decades. The 79 year old leads radical settler movement Nachala, whose aim is for Israel to annex Gaza and the occupied West Bank, where it helps settlers built outposts.

Harel Libi & Libi Construction and Infrastructure
Libi has been involved in threatening and perpetuating acts of aggression and violence against Palestinians. His firm has provided logistical and financial support for the establishment of illegal outposts.

Zohar Sabah
Runs a settler outpost named Zohar’s Farm and has previously faced charges of violence against Palestinians. He was indicted by Israel’s State Attorney’s Office in September for allegedly participating in a violent attack against Palestinians and activists in the West Bank village of Muarrajat.

Coco’s Farm and Neria’s Farm
These are illegal outposts in the West Bank, which are at the vanguard of the settler movement. According to the UK, they are associated with people who have been involved in enabling, inciting, promoting or providing support for activities that amount to “serious abuse”.

Cinco in numbers

Dh3.7 million

The estimated cost of Victoria Swarovski’s gem-encrusted Michael Cinco wedding gown

46

The number, in kilograms, that Swarovski’s wedding gown weighed.

1,000

The hours it took to create Cinco’s vermillion petal gown, as seen in his atelier [note, is the one he’s playing with in the corner of a room]

50

How many looks Cinco has created in a new collection to celebrate Ballet Philippines’ 50th birthday

3,000

The hours needed to create the butterfly gown worn by Aishwarya Rai to the 2018 Cannes Film Festival.

1.1 million

The number of followers that Michael Cinco’s Instagram account has garnered.