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Mary Hanbury

The coronavirus epidemic could wipe out $43 billion of luxury sales in 2020


The coronavirus epidemic could cost the luxury market as much as $43 billion in sales, according to a new report from investment management firm Bernstein.

Bernstein partnered up with Boston Consulting Group to survey a group of 28 senior executives from a selection of luxury brands to find out what impact they expect the virus to have. (Bernstein would not reveal exactly which execs were included in the survey when contacted by Business Insider).

These execs are anticipating to see a €30 to €40 billion ($32 to $43 billion) hit on luxury sales in 2020 thanks to the spread of the virus.

43% of the execs surveyed said they are expecting sales to be impacted for the next three to six months before leveling out.

2020 will be a 'disaster' for many luxury brands

The luxury market is especially vulnerable to the coronavirus outbreak because it's impacting the spending habits of its most important customer base: the Chinese.

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