Fashion and luxury in the days of the Coronavirus.

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Fashion and luxury in the days of the Coronavirus.

The COVID-19 epidemic has had an earthquake in the fashion and luxury industries. Women’s fashion shows in New York, London, Milan and Paris have been overshadowed by the pandemic. Which spread to Italy as the parades started there. Caution, and paranoia have taken the fashion industry by storm. And the cancellation of the biggest events was inevitable.

Galerie Joseph presents the impacts recorded on the fashion industry during this pandemic time.

Our galleries are unfortunately closed, 20 atypical spaces for rent in the Haut Marais, which will reopen to present you during showrooms, art and design exhibitions the most beautiful creations.

The fashion and luxury industry is facing one of the biggest crises of the past decade.

Between producing masks, and hydroalcoholic gels. Big luxury houses and brands are showing a generosity. To help those in urgent need. But it is hardly possible to ignore the impact that the pandemic has had on the economy of this sector.

A TORNADO FALLS ON THE MIDDLE OF FASHION

The end of fashion month was marked by growing concerns about the spread of the virus in Europe. Giorgio Armani’s parade took place in an empty hall and was broadcast online.

As you can see, fashion and luxury companies are feeling the brunt of the health crisis.
Because the measures taken by the public authorities to fight against the pandemic involve in several countries closings of production sites and stores. This will have an impact on the results of the biggest leaders in the luxury industry.

Putting fashion to sleep

According to Vogue business, large luxury groups are preparing to drop sales by $ 40 billion in 2020.

First of all because China, the global supplier of textiles, is the nerve center of the virus. And today finds itself paralyzed with closed factories.

Second, because Chinese buyers represent 33% and 35% of luxury goods purchases worldwide by value. And even had to reach 45% of the market in 2025.

According to the firm Bain & Co. The Chinese buy a lot while traveling and in Paris. They correspond to a huge market. Also whose favorite places are Galerie Lafayette, Le Printemps, and Le Bon Marché.

Except that in the time of the coronavirus, the exposure to Chinese spending by European luxury giants, will make these funds the most affected. And sales in the fashion and luxury industries will experience an unprecedented drop.

François Le Louët, President of the French Federation of Women’s Ready-to-Wear wrote:
“Suspended productions, closed stores, slower transport. The Covid-19 epidemic that affects us has immense consequences for our businesses. From the start of the crisis, I alerted the authorities to the impact it would have on the entire fashion ecosystem. “

Impact on all fronts

This health crisis had a strong impact on the fashion sector. Between the factories being shut down, part-time employees and the entire ecosystem of fashion independents. Photographers, hairdressers, makeup artists, on all the actors involved. As well as in the production of fashion shows, shootings, showrooms, etc. Then sellers in shops. Brands are afloat, and must resist the epidemic, counter it, and not cloud their prospects for the future.

Even if LVMH, Kering, and even Hermès, the three largest groups known and recognized in the luxury industry see their stock market prices drop. Estimates are not really visible regarding the actual economic impact on the luxury market. Estimates hover around 20% and 40%.

the Boson Consultancy Group (BCG) estimates that global sales could drop by $ 450 billion to $ 600 billion from 2019 levels.

“Three seasons are now threatened. Those in progress in the shops, orders expected in April after Paris Fashion Week. Then the pre-collections usually presented to buyers in May”. Worried about his side Pierre-François le Louet, president of the federation of women’s ready-to-wear. Beyond the brands, “it’s an entire ecosystem that is paralyzed, from independent stylists, to graphic designers, to event agencies”.

A small handbag producer for Gucci told Reuters that it normally produces up to 1,000 bags per month for the brand. The number fell to 450 in February and there have so far been no orders for April or May.

The fashion sector in decline

We will understand. Sales are dropping and estimates are at least 35% for luxury brands. The independents will face a more extreme fate.

According to Flur Roberts, head of luxury at Euromonitor International “Luxury firms like Burberry, Tapestry and Capri have already lowered their sales forecasts for 2020”.
Elsewhere, Honor Stachan, an analysis of retail at Global Data, says that even if brands can be isolated immediately. If the public health crisis continues, it could have negative effects on production levels. Then those of supply, and maintenance of product standards. This until the fall and during the holiday season. Especially for Italian brands that rely on Italian heritage and craftsmanship.

The latter are the most affected given the tourist appeal of their purchases. Prada, Armani, Valentino. As well as the Kering group which owns Italian heritage brands. Such as Gucci, Bottega Veneta, & Pomellato, already suffered a drop in sales in the first half of 2020.

LVMH is also vulnerable with brands such as Fendi & Pucci. The latter are likely to experience a drop in attendance. But what if the epidemic can be brought under control? demand for luxury travel and shopping will increase. To then fuel sales of luxury products for the rest of 2020;

The calendar for the fashion and luxury industry turned upside down.

Major events have been canceled or postponed. The very famous Met Gala, like the prestigious Cannes Festival, the fashion weeks will not be spared. Thus, according to the Board of Directors of the Federation of Haute Couture and Fashion. “The conditions are not met to allow the Paris Fashion Week Men’s Fashion, scheduled from June 23 to June 28, 2020, and the Haute Couture week scheduled from July 5 to July 9, 2020 to take place.”

The verdict was announced by the FHCM, the conditions are not met. The Parisian institution, which has a hundred members, has acted as spokesperson for the fashion sector, like its Italian counterpart, the camera nazionale dee la mode. They decided together, and following a crisis meeting, not to plan any event under the influence of fashion and luxury in early summer. The federation indicates, however, that it is working with its members on the possibility of proposing alternative projects.

“The spread of the Covid-19 epidemic, which is spreading throughout the world, calls for strong decisions to protect our homes, their employees and all those who work for our industry” says the press release FHCM.

Milan wants to offer “a new narration”

Milan also passes the hand. Camera Nazionale della Moda Italiana has indicated that the parades and presentations planned for the week of June 19 and 23, 2020 will be integrated into the Milano Moda Donna which will take place in September 2020.

The Italian federation specifies: “We are nevertheless working on new digital formats and new ways of meeting, in order to create a new narrative”. These will be B2B and B2C platforms. The 800 Milanese showrooms will actively participate in this new narrative, “continues the federation, which states that the new collections will be ready to be presented virtually and to be sold to buyers.

One of the most lucrative “cruise” seasons of the year

It’s normally held in the spring, and it is a kind of recreation. Where fashion players breathe and ambition themselves by presenting collections that are heart-warming. It is also an ambitious and commercial presentation program that brings journalists and influencers but also major customers to different places around the world.
Major brands have already canceled their cruise shows: Gucci, which had planned to present in San Francisco in May,
Burberry, which had planned a parade in April in Shanghai and Prada which had planned a cruise parade in Tokyo at the end of May.

What an important moments for fashion houses, a chance to bring clothes to the four corners of the world, and have an outside audience in the biggest fashion capitals. It is also a resource for shops to revive stocks between seasons, even if cruise parades are no more necessary than seasonal parades.
Fashion designers are canceling and rethinking their catwalks, which can lead to questions about their format after the epidemic. “In times of crisis, you have to think about a radical reset,” Anna Wintour of Vogue told The Times.
Ralph Lauren canceled his April fashion show, originally scheduled to present his fall 2020 collection, and Giorgio Armani opted for a livestream fashion show in an empty hall on the last day of Milan Fashion Week.

Fashion is questioning itself

The virus may well force designers to question how to do a fashion show to sell their products and build their brands.
There will undoubtedly always be brands that insist on organizing parades: this season, the powerful and apocalyptic submersion of Balenciaga and the cheerful parades of Chanel demonstrate that there was always something to gain, to see and to make it feel the vision of a designer speaking on a catwalk.

But that does not mean that many questions about the movement around sustainable development in the fashion industry will not resurface.

An after COVID 19 will inevitably be there to set the record straight and review our way of presenting, consuming, and selling in the fashion sector and everywhere else.

And they continued the fight ..

All brands continue to fight the coronavirus, and rely on social networks to stay in touch with their communities. Brands are still selling dreams to their internet users, through photos and hashtags.

Luxury brands do not disconnect, and their communication is not confined.

The big fashion titans: LVMH and Kering, like so many other groups, send messages of support. They share their novelties, determined not to let anything go, by contextualizing this situation with the desire to find an escape through the dreams that these beautiful brands undertake to claim.
Passion, joy, and a fiercely committed spirit against adversity.

The coronavius has created a collective awareness of how to consume, create and offer products on the market.
The latest news: Chanel, the big fashion house has created a program called Chanel mission 1.5 ° to fight against global warming. A commitment that intends to respect the luxury label thanks to strong measures focused on four fields of action. Among other things, reducing its carbon footprint, reducing its supply chain, switching to renewable electricity, and financing projects to adapt to climate change.
News that revives everyone’s hope to allow the world of fashion and luxury to regain strength, move towards a better future. All this with a clear conscience.