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Industry News | Time: Mar 17 2020 2:10PM
The effect of the COVID-19 to be felt by global fashion industry till mid-2021
 
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Though Coronavirus (COVID-19) has led to some designers cancelling Milan Fashion Week shows, the fashion industry is yet to feel the full brunt of the repercussions of the global pandemic. So far, the outbreak has led to cancellation of some presentations in Paris. It has also resulted in an increase in the sale of face masks including ones being custom-designed for the fall ’20 Chanel show.

American fashion editors have been advised to self-quarantine for two weeks. Most local fashion houses in New York have declared a work-from-home policy for employees. They are either cancelling or postponing their shoots, press previews, dinners, and work-related travels.

Impact on small, direct to consumer brands
Not just large, publicly owned companies but also small, direct to consumer brands are suffering. Traffic at Le Point, a San Francisco-based multi-brand concept store has slowed as people have been told to avoid large groups and stay indoors. Similarly, the epidemic has delayed the restock of China-based brand Yan Yan by a few weeks, thus affecting its ability to supply to demand. As a health and safety requirement, the brand is monitoring the temperatures of its factory workers daily besides compelling them to wear masks. Employees also have to sanitise their shoes before entering office besides washing their hands before handling product and packages.

Government orders compel brands to shut stores
Fashion brands in Italy and China have begun to close their stores as governments in both countries have advised their residents to avoid public spaces. Italy has also forbidden its citizens to gather in public. Capri Holdings, which owns Michael Kors, Versace, and Jimmy Choo, has closed 150 stores in China.

As most Chinese workers have been advised to stay at home, production at all brand factories has stopped. This is likely to delay order inventories of factories in China. As Gary A Wassner, CEO of Hildun Corporation and Chairman of Interluxe told Time magazine recently, companies selling private labels or brands sold specifically to one store, are likely to face a major hit due to their quick turnarounds.

Unsold inventory to impact sales till mid-2021
Confindustria Moda president Claudio Marenzi predicts a tough year for the industry. The slowdown will also affect the first semester of 2021. Though the spring 2020 season will be most dramatically hit by this crisis, there will be a few repercussions on the fall 2020 and spring 2021 seasons too. Though the virus could be quelled by then, sales will continue to be affected till June 2021 as brands will be saddled by a lot of unsold inventory.


Source: Fashionatingworld
[RISK DISCLAIMER] All opinions, news, analysis, prices or other information contained on this report is provided by analyst of Zhejiang Huarui Information Consulting Co., Ltd (CCFGroup) as general market commentary and does not constitute investment advice. CCFGroup will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
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