With fashion industry hit the hardest by COVID-19, Moda Operandi has decided to close its men’s business. It had ventured into men’s business in June 2018 dealing in men’s apparels, footwear and accessories both through its trunk show model and in season. However, the company plans to keep its men’s team on through the second quarter so as to wind down the business.
It is undoubtedly the outcome of the impact of COVID-19 on fashion industry that the Moda Operandi has decided to shut down men’s division. It plans to focus on its core business that revolves around women’s fashion, fine jewelry and home products.
Analysts’ reports released last year state that the sales of high-end goods could decline between 20 per cent and 30 per cent in 2020 in the wake of Coronavirus pandemic.
RBC Europe underlined that around half of luxury sales in the continent come from tourists, compared with 80 per cent to 90 per cent domestic sales in the Americas that is likely to continue even when lockdowns ease up.
Further, it projects that aspirational luxury spending might be affected as younger consumers – specifically talking about millennials and Gen Z that together account for about a third of luxury shoppers – are more prone to the economic fallout.
