Coronavirus Could Cost Luxury Brands Billions

Pandemics are bad for business.

26.2.2020

The coronavirus has already impacted Fashion Month, and according to a new report, the coronavirus could cost luxury brands $43 billion in sales

Pandemics are bad for business.

Photo: Liyao Xie/Getty Images Normally the goodies you get at fashion shows are small and chic — like a cashmere sleep mask or a personalized handkerchief. But at Dries Van Noten’s Paris show, guests were offered sanitary face masks to protect against coronavirus. The same day, Business Insider reported that coronavirus could cost luxury brands $43 billion in sales, according to a survey by Bernstein and Boston Consulting Group. The billion-dollar hit is mostly because Chinese consumers make up around 40 percent (according to McKinsey) of luxury-good consumers. As stores and malls close in China, sales dry up. One former chairman of LVMH, Pauline Brown, said that 2020 will be a “disaster.” Brown also said that people may not want to buy luxury goods when they’re deeply worried about public health. Another issue is travel. Brown said that “40 percent of luxury goods are sold to travelers.” If people aren’t traveling, they won’t be dropping thousands of dollars in duty-free Chanel stores. “We’re going to start to see a cascading effect across the industry.” The virus has already impacted Fashion Month, where the schedule requires editors from around the world to pass through Italy — one of the centers of infection — and Paris. T magazine editor Hanya Yanagihara said on Instagram that because she went to the Paris shows, she’s been asked to work from home for two weeks as a sort of unofficial New York Times quarantine. No wonder people at the Dries Van Noten show were handing out masks. Our fashion director, Rebecca Ramsey, also noted that fewer Chinese buyers made it to Paris or Milan. Maybe it’s time to rethink our current system of flying editors and buyers all over the world in order to make fashion decisions — a system that has already come under attack as environmentally unsustainable. Getting rid of Fashion Month might be bad for businesses, but then, so is coronavirus. Read more: The Cut

Get Face Mask Against Corona Virus Now, Protect Yourself From All Viruses:

The coronavirus epidemic could wipe out $43 billion of luxury sales in 2020 - Business InsiderLuxury brands are especially vulnerable to the coronavirus outbreak because it is impacting the spending of their most important customer base. No more waiting lists to wait finally... And nothing of value was lost. good

Luxury’s $25.5 Billion Stock Hit From the CoronavirusThe coronavirus impact is everywhere, from the stock portfolios of fashion billionaires to the taxi drivers and shopkeepers in Milan.

CDC warns Americans of 'significant disruption' from coronavirusU.S. health officials issued a strong warning about novel coronavirus on Tuesday, saying it's no longer a matter of if but when the virus will spread in the U.S., and that Americans should prepare for a 'significant disruption.' What They tried to warn us. soooo..... how while many millions upon millions of “disrupted” americans be able to pay bills if they can’t work?

Some Apple retail stores re-open in China after coronavirus closingsLast week, Apple warned that it would miss its $63 billion to $67 billion estimate for March quarter revenue due to the Coronavirus and efforts to mitigate its effect.

White House requesting $1.25B as part of $2.5B plan to fight coronavirusWhite House requesting $1.25 billion in emergency funding from Congress as part of total commitment of $2.5 billion to fight novel coronavirus, according to congressional official. Why does it make people's eyes look like that? It’s just a bad cold as Rush Limbaugh says so it should be a nothing burger. I'm confused. Rush Limbaugh said coronavirus is just a common cold and the hype around it is just a conspiracy against Trump.

What Is a Coronavirus? | Everyday HealthCoronaviruses can range from a common cold to more serious illnesses like severe acute respiratory syndrome (SARS). A “novel” coronavirus (CoV) means it’s a new strain of coronavirus that hasn’t been seen or identified before.



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