[vc_row][vc_column][vc_column_text]
[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]
After LVMH and Kering, cosmetics giant Estée Lauder was one of the last to announce that it was going into the production of hydroalcoholic gel and was going to multiply donations. Since the Covid-19 pandemic has been raging around the world, the fashion and luxury sector has been in crisis. Falling demand from Chinese buyers, closure of factories in Italy’s main manufacturing regions, the coronavirus is by extension impacting the entire luxury economy. Here is the latest detailed report on the commitment of luxury brands to face an unprecedented health crisis.
Luxury sector hit hard
A horror scenario that begins in East Asia in the last quarter of 2019. China, the engine of the luxury industry, becomes the cradle of the new Covid-19 epidemic. A health crisis on an unprecedented scale that has a very strong impact on China’s fashion and luxury sector, both commercially – as consumption, particularly of luxury goods, is plummeting – and industrially – as production is forced to slow down in the face of shrinking demand.
The epidemic is rapidly taking on a global dimension and is becoming a pandemic feared by all. Given the importance of China in the production of French and international clothing, countries around the world are facing a disruption in their production chain and must reduce their supply. And because Chinese consumers account for 35% of luxury purchases worldwide, world leaders in fashion and luxury are suffering from a slump in their activities: scarcity of tourists, falling demand, declining turnover.
This article is reserved for subscribers.
Subscribe for FREE for 1 month with the promotion code TELEWORK!
Unlimited access to all the articles and live an original reading experience, preview content, exclusive newsletters …
I subscribe!
Already have an account? Log in.
Featured photo: © Lancôme
[/vc_column_text][/vc_column][/vc_row]
