Last year, luxury industry in Japan suffered severely due to Covid19, and many people working at luxury industry looked carefully about FY2021 situation.

In total, the situation depends on brand, some brands recovered dramatically, but some brands were still struggling. The example of good brands are Hermes, Luis Vuitton, Dior and Loewe. Considering annual report and Japan market share, it is predicted that financial situation recovers to FY2019 level or exceeds it at least quarterly level.

On the other hand, the struggling brand is luxury fashion brand, such as Gucci, Zegna, Loro Piana, Kenzo. The similarities for these brands are

1. Small leather and bags percentage is not high

2. High inbound rate

Promoting remote work because of Covid19 and prohibited foreign traveler caused this bad impact. Especially, luxury men’s band was more severe than other brands.

After state of emergency, traffic is recovering at Ginza or department stores at Tokyo and some companies convert to office work from remote work. However, office work is not predicted the same level as FY2019’s anymore, so clothes for office might not recover not only short term but also long term.

The good point for the industry is that stock price is still high in Japan, so wealthy people still exist and they are searching for the luxury products which spent money. Watch, jewelry, small leather goods and bags fit with wealthy people’s motivation and this trend still continue until the end of December.