"Revenge spending" could speed up luxury brands' recovery as coronavirus restrictions ease, according to a News Corp Australia report.
The publisher’s News Prestige Network released exclusive research on the attitudes and behaviours of Australian luxury goods consumers for its new The Road To Recovery series. The virtual events are designed to help Australian companies navigate the new business and consumer landscape.
The report found that in their “pent-up desires” to indulge themselves after lockdowns, luxury consumers will overcompensate and start "revenge spending".
This could play a key role in assisting the short-term recovery for luxury brands, which are expected to experience a fall of 50%-60% in global sales, according to a report released in May by consultancy Bain.
According to the study, 46% of affluent Australians will buy a big-ticket item in the next 12 months and, as restrictions ease, Australians are looking forward to shopping in stores, dining out and socialising.
“The world as we knew it has changed – possibly forever – and finding our way through the new world is going to be challenging,” says Lou Barrett, News Corp Australia managing director for national sales.
“The way people think and behave is not going to be the same, and there is no doubt we’re all entering a time to restart, reset, reboot and recover."
The research, which studied 1,000 Australians, was conducted by News Prestige Network and research company IPSOS. It also found that despite 1 in 2 Australians being optimistic about the future, they are also concerned about a second wave of COVID-19.
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