The global luxury goods market’s recovery is being powered by the rapid rollout of COVID-19 vaccines, renewed consumer confidence, and increasing affluence in countries worldwide. Consequently, international luxury goods companies Hermès International Société (HESAY (OTC:HESAY)), Burberry Group (OTC:BURBY), and Hugo Boss (BOSSY), which are progressively strengthening their e-commerce platforms, should witness significant demand in the coming months. So, we think it could be wise to add these names to one's portfolio now.With rapid digital advancements, evolving marketing strategies, the rising popularity of premium brands in e-commerce platforms, and consumers' increasing purchasing power, the COVID-19 pandemic has catalyzed the luxury goods industry’s ability to transform.
The global Luxury goods market is expected to reach $296.9 billion by 2026, registering a 4.8% CAGR. A rapid rollout of COVID-19 vaccines worldwide and substantial fiscal stimulus, along with renewed consumer confidence, should accelerate domestic spending on luxury goods. Furthermore, increasing spending on premium luxury brands by high-net-worth individuals, fostered by the growing influence of social media platforms, should spur the industry's growth.
Given current industry dynamics, we think international luxury goods stocks Hermès International Société en commandite par actions (HESAY), Burberry Group plc (BURBY), and Hugo Boss AG (BOSSY) are well-positioned to benefit. So, these stocks could be wise bets now.