Luxury fashion sector has been majorly affected by the ongoing coronavirus pandemic. According to CNBC, Bain & Company has released a Luxury Study report 2020 Spring Update with an Italian luxury brand committee composed of companies in the fields of design, fashion, food, jewelry, automobiles and hospitality, Altagamma.

Claudia D’Arpizio, one of Bain’s partners and the study’s lead author stated: “There will be a recovery for the luxury market but the industry will be profoundly transformed. The coronavirus crisis will force the industry to think more creatively and innovate even faster to meet a host of new consumer demands and channel constraints.”

According to the global consultancy, the sales dropped by 25 percent in the first quarter of 2020” and expects it to continue dropping towards the end of the year.

Federica Levato, Bain & Company’s partner and the report’s co-author, said: “The speed of future market growth will depend on luxury players’ strategic responses to the current crisis and their ability to transform the industry on behalf of the customer.” Bain & Company expects the industry to recover by 2022 or 2023.