Luxury Market Braces For A Major Blow Amid Coronavirus Contagion

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With China being the world's second-largest luxury market, luxury brands are expected to suffer a major blow from the growing coronavirus pandemic

The supply chain for goods coming out of China is also taking a big hit. Factories are traditionally closed for the Chinese New Year celebration, which this year was from January 25 through February 2, but in some regions the shutdown has been extended through February 10, though it may go longer depending upon the rate of infection.

assessing the damage between 0.5% to 1.0% to China’s previously expected GDP growth of 5.9%, a loss of some $7.2 billion to $14.3 billion.Cowen’s Oliver Chen Farfetch is also heavily dependent on China, accounting for 28% of its business, but because it is an e-commerce company, it won’t likely suffer as much as other brands relying upon in-store sales.

For some purchases, particularly the very high-end segment, he expects those purchases will be deferred and come back once travel bans are lifted. But for more affordable luxury, like trend-driven fashion, those sales are lost for good. “It’s a whole different purchasing cycle.”

 

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And? They good

davegreenidge57 Chav culture will buy up the surplus. Get my Polo on next time I’m in Brixton.

Makes you want to know, is it infectious disease warfare?

Not to mention what happens to global supply chains in which, in an internationalised interconnected world, China plays a crucial part.

Yes that's what is important, Gucci losing money.

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