How coronavirus affects fashion industry

Let’s start with the good news

  • We didn’t stop buying clothes for home and sport. Nowadays people are searching for sweatpants (+235% YoY) and cashmere hoodies (+340% YoY) more often.
  • Experts believe that minimalistic and comfortable clothes are going to stay with us even after the quarantine.

But in general, the industry is suffering and purchasing power is declining

Luxury brands are also struggling…

  • Luxury goods sales might potentially decrease by $85 billion-$120 billion or 29%.
  • LVMH Moet Hennessy Louis Vuitton SA revenue dropped by 15% in the first quarter of 2020.
  • A similar decrease (15.4%) was reported by french retail chain Kering SA that owns Gucci, Bottega Veneta, YSL, Balenciaga, and other luxury brands.
  • American luxury retailer Neiman Marcus filed for bankruptcy.
  • The Head of LVMH is now considered the most impoverished person in the world because of coronavirus. His net worth decreased by $30 billion dollars.

… but are actively donating funds (and production capacities)

  • LVMH became a trendsetter when the company announced, that it is going to produce sanitizers and send them to the French hospitals for free.
  • Chanel and Burberry launched the production of medical masks and gowns.
  • Guess donated more than $1.3 million to combat the pandemic.
  • Capri Holdings (Michael Kors, Jimmy Choo и Versace) will donate more than $3 million to fight against COVID-19.

The situation is quite ambiguous for the online-retailers

  • Amazon stocks went up 25% since the beginning of the year.
  • 64,5% of businesses decreased their online activities during the pandemic.
  • Revenues of online-retailers dropped by 30% in March, but in April they increased by 21% in comparison to the previous year.

Fashion is forced to adapt to new digital realities

  • The fashion industry started to pay more attention to virtual clothing and virtual models.
  • Fashion weeks are held digitally more often (for example, fashion weeks in Shanghai, London).

Go Mobile Data

The reaction of our clients to the pandemic

What will happen next

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