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Coronavirus is handicapping the fashion industry 😷

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highsnobiety.com

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newsletter@highsnobiety.com

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Tue, Mar 10, 2020 02:34 PM

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The show must go on Coronavirus: Handicapping the Global Fashion Industry After an initial outbreak

The show must (not) go on [Highsnobiety]( [Highsnobiety]( Coronavirus: Handicapping the Global Fashion Industry [explore our full analysis now]( After an initial outbreak in China’s Hubei province, the coronavirus is now a worldwide issue. The fashion industry has already been deeply affected, and there’s a strong indication that this will continue. In some cases, corporate headquarters are closing; Nike shut down its European HQ for deep cleaning after one employee was confirmed to have the virus. Home office or “self-quarantine” policies are becoming common for the employees of many firms as a preventative measure. But how is it affecting the different operative areas of the industry? retail [Highsnobiety]( - Chinese buyers are the the fastest-growing luxury shopper demographic in the world, and drove 80% of the past year’s sales growth in the luxury sector. This spending is taking a blow with the quarantine of more than 50 million people in China. - A third of Burberry stores in China have been shut down. Capri, the owner of Michael Kors, Versace, and Jimmy Choo, closed 150 of its 225 mainland stores. Tapestry, which owns Coach, Kate Spade, and Stuart Weitzman, said it was expecting sales to drop as much as $250 million. Ralph Lauren temporarily shuttered 2/3 of its stores in China. - The outbreak has prompted adidas, which attributes one-third of its sales to Asia, to close a “significant” number of stores in China. Since January 25, the brand had seen business activity drop roughly 85% compared to the same period a year earlier. - Nike has closed half of its stores in China, and the ones that are still open are operating with reduced hours; this is a big loss, as 18% of Nike’s sales came from the greater China region in the most recent quarter. fashion week [Highsnobiety]( - Coronavirus has led to the postponement or cancellation of a number of fashion shows for Fall 2020. In China, both Shanghai and Beijing Fashion Weeks have been postponed. - Seoul Fashion Week was cancelled after a number of designers pulled out of the event. - While shows in Paris and Milan still took place, they weren’t the usual festive affairs. Many Chinese fashion brands cancelled planned events. supply chain [Highsnobiety]( - China is the world’s largest textile producer, with exports worth more than $280 billion a year. Shortages may soon become apparent in stores worldwide. - “Up to 90% of all goods are made in China. We already know that the design processes for fall/winter products are not happening as they should be.” – Trend forecaster Li Edelkoort - The Chinese city of Putian has been an integral piece of the supply chain for brands like Nike, PUMA, and adidas for decades. However, ten of the city’s shoe factories have now been tasked with producing disease preventative masks instead of manufacturing footwear. [want to learn more?]( ● Latest News [Coachella Might Be Postponed Until Fall but People Aren't Mad About It] Coachella Might Be Postponed Until Fall but People Aren't Mad About It [New Apple Leak Unveils Powerbeats 4 Design & Specs] New Apple Leak Unveils Powerbeats 4 Design & Specs [Watch Us Unbox the Friends & Family adidas Originals Superstar] Watch Us Unbox the Friends & Family adidas Originals Superstar [A Lesson in Dressing in Neutrals, Courtesy of Macy’s] A Lesson in Dressing in Neutrals, Courtesy of Macy’s ● New balance is back at it [Highsnobiety] [Highsnobiety] [shop new balance's ML860 XG now]( [Like on Facebook]( [Follow on Instagram]( [Add on Snapchat]( [Follow on Twitter]( [Subscribe on YouTube]( [Follow on Pinterest]( You are receiving this email because you opted in at our website: [{EMAIL}](. You can [unsubscribe from the list]( or [manage your subscription preferences](. Titel Media GmbH 2020 © Titel Media GmbH, Genthiner Str. 32-34, 10785 Berlin Germany

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