The Great Crisis Of Fashion Industry, The 2020 Way Of Luxury

The opening of 2020 gave the new world's richest group LVMH a head start. No surprise, other luxury giants are anxious to see their brand's 2020 fate. The new coronal epidemic has come to a sudden, and it has indeed given them a good chance to get a gold medal in the year.

As one of the largest markets in the world, the Chinese market has a pivotal position in the whole industry.

Due to the outbreak of the epidemic, the number of overseas Chinese tourists, especially group tourists, will decrease in the short term. Many luxury companies' share prices have dropped significantly, while LVMH and Kai Yun group have fallen by 8.5% and 8% respectively, while Burberry has dropped 12%, while Capri Holdings of Michael Kors and Versace has fallen by 14.7%. A record of $15 billion of the market value was evaporated in one day.

As the world's second largest economy, the second largest importer and the largest exporter, China is an important part of the global supply chain. At present, although some enterprises have entered the stage of reemployment, they are also facing many problems, such as the shortage of their own epidemic prevention materials, the low efficiency of logistics business, the disruption of the supply chain, the shortage of raw materials, and the shortage of manpower to return to the cities.

Some enterprises said that although they had resumed work, they were also faced with a downtime because of insufficient supply of raw materials. Many enterprises are starting to consume a small amount of stock left before the Spring Festival. When the logistics is blocked, the capacity of the upstream enterprises is insufficient, and the production of raw materials is insufficient, it will not take too long to produce a "rice without rice" condition, so they have to cut down production or even stop work.

Today's China is not only the world's factory, but also one of the world's largest tourist markets.

According to the 2019 global luxury industry research report, Chinese consumers in 2019 contributed 90% to the sustained growth of the global luxury goods market. Chinese tourists' spending on tourism abroad is an important source of luxury sales growth.

Affected by the epidemic, in January 27th, China stopped the tour group and travelled by the travel agency to host hotels and air tickets. The survey shows that if the current ban continues, the number of Chinese tourists visiting Japan will be reduced by about 4, and Japan's tourism will shrink. This will cause a 0.45% decline in GDP in Japan.

As holidays are lengthened and people choose to stay at home more for safety reasons, online shopping has become an alternative to people's offline consumption. The brand may make up for some retail losses through e-commerce services.

Before that, in order to cater to the Chinese market, every luxury brand will launch a series of Chinese New Year products and marketing through the star effect. However, these products are always limited to festive red, gold, or intuitive Zodiac patterns in terms of color value and packaging. Some designs even "fail to level" frequently, and consumers are often "unmoved" by Tucao.

At this stage, whether it is luxury or other industries, affected by the epidemic is inevitable. Enterprises can only cope with the rapidly changing market in the future only by practicing emergency and compression capabilities.