The Luxury Industry Has Been Hit Hard By The Epidemic.

In February 4th, Carlo Capasa Capasa, head of Italy Fashion Association CNMI, said that the outbreak of China's new coronavirus would lead to a 1.8% decline in the turnover of Italy fashion industry in the first half of 2020, mainly in the first quarter of February 4th.

Pandora, the jewellery manufacturer, warned that China's business has been shut down. Pandora At the same time, some high-end brands say they have closed stores in China's largest luxury market in the world, raising concerns that if the virus is not quickly curbed, the industry will face serious sales losses.

Italy is home to many luxury brands such as Armani (Armani), Gucci (Gucci) and Prada (Prada). In Europe, its sales of fashion and luxury goods are second only to that of France, according to CNMI. The total turnover of the industry last year was 90 billion euros, accounting for 5% of the gross domestic product of the third largest economies in the euro area.

Capasa said: "in December last year, our outlook for 2020 was able to return to the historical annual growth rate (about 3%), but with the outbreak of coronavirus, everything has changed."

"It is not yet possible to calculate the total economic impact, but if the industry grows by 1% this year, we will be lucky."

Chinese shoppers have promoted the development of luxury goods industry in the past ten years. At present, the Chinese market has accounted for 35% of the industry's global sales. According to Bain&Co estimates, last year, global consumer sales amounted to 281 billion euros.

However, the outbreak of coronavirus has isolated some parts of China, and the flights have been grounded. Many Chinese have cancelled foreign travel, including the peak season of retail sales in China and abroad during the Lunar New Year holidays.

Companies around the world are warning that the outbreak could disrupt the supply chain or damage profits.

Ralph Lauren Corp (Ralph Lauren Corp) said in February 4th that Ralph Lauren had halved half of the 110 stores in China due to the virus. LVMH group's recently acquired Tiffany company (Tiffany&Co) also said it temporarily closed several stores in the affected area.

Pandora, chief executive of Alexander Lacik, told Reuters in February 4th: "when we observe China's business, it is at a standstill."

Capasa said that three Chinese designers were forced to cancel their performance at the fashion week in Milan in from February 18th to 24th, and some 1000 Chinese people who were expected to attend may not appear now. He said: "the purchasing power of Chinese consumers is very strong, which is very meaningful for us."