How China’s apparel industry Fighting loss by Corona

How China’s apparel industry Fighting loss by Corona

The Coronavirus has caused a global epidemic, and it seems to have its effects on many sectors beyond the health threats. Other countries connected with the Chinese borders have started to show their concern for this nCoV, and due to this, many sectors in China are struggling to stand still. This deadly virus has shaken the whole Chinese business, it exports, and we don’t see any mercy on the China’s apparel industry as well.

China and its neighbors constitute the largest exporter of fashion goods and apparel and are home to the world’s most luxury fashion brands. The big fashion brands like Tencent and LVMH have donated millions of dollars to battle the coronavirus outbreak in APAC. Many fashion stores and industries and been shut down, and many industry fairs, exhibitions have been canceled or postponed, which has been started to show it’s effects on china’s economy as well.

Fashion brands’ stores are temporarily shut in China

International brands have started to shut down their outlets in Chinese cities for the time being, due to the decreased footfalls. The well known Chinese New Year spending, one of the significant events in the retail calendar for big fashion names, already taken a hit when the government heavily decreased the travel of the Chinese citizens.

Impacts on E-commerce

As the government has restricted the travel of around 60 million Chinese population, people all over the country are compelled to avoid public places and stay at their homes. Many fashion brands like Uniqlo, IKEA, and H&H have closed down their showrooms and outlets across China to protect it’s employees from the virus.

Many E-commerce websites like Pinduoduo, JD.com, and Alibaba’s Taobao has shown a spike in the sales graph. Sanitary and medical products have also demonstrated a steep increase in sales. The Chinese citizens who are locked away from their families in the festive season have used the internet to send gifts to their loved ones in the country.

Fashion brands are cutting financial predictions

According to the analytics from Brain and Co., the Chinese consumers account for more than 90% of the luxury product market growth. The luxury goods have been plummeting for more than one-third of the value of the luxury items buyers to the financial times.

To fight the epidemic, the luxury companies, especially the big fashion brands, have seemed to be revising their financial forecasts for the next half or the whole financial year. However, they claim to be confident about their long term goals and believe that there is growth expected in the region shortly.

Fashion and apparel fairs are postponed

About the current situation of Coronavirus in China, many big fashion fairs, exhibitions, and industry events have been affected, not just in China but also in American and European countries. ISPO Beijing has been canceled as of now, while Chic Shanghai has been postponed, and this will affect the Chinese apparel industry directly and drastically.

Many fashion shows happening in Europe will be conducted without the presence of the Chinese visitors, and textile shows in Portland and Boston, which are popular with the Chinese, have been postponed. Sourcing fair Asia Apparel Expo of Berlin have been delayed, and expected to take place in June.

Coronavirus compels Chinese consumers to abandon European fashion shows

Many fashion weeks in Milan and London, with thousands of Chinese consumers, will be missed this year. The event organizers have already announced this in February 2020. But it is hoped that the Chinese participants might be able to shop online, with the London and Milan promising to live telecast their fashion shows and product advertisements.

So, what to expect as of now?

The impacts of the nVoC are likely to affect the global industry of textiles as well. The closed stores and outlets of some luxury brands lost an estimated value of €2 billion in sales during the protests in Hong Kong, particularly last year. This territory is now being hit again due to the virus outbreak in its mainland China. This is not just the case with HongKong. As the virus races, it’s a target in many cities of China, significant industries of the world have stopped trading with China, resulting in a mutual loss of the countries.

Conclusion

The China’s apparel industry Fighting loss by Corona and is not likely to cover up their losses anytime soon. As the virus has crossed the geographical boundaries, it is more likely that it will be a global economic crisis, especially the apparel and textile industry, if this virus is not stopped. It seems that the Chinese government has not learned any lesson from the SARS, as they tried to cover this virus outbreak, yet again.