Responsible for 5 per cent of the country’s gross domestic product and employing more than 500,000 individuals, Italian luxury goods might face irreparable damage due to the prolonged lockdown. Carlo Capasa, Chairman of Italy’s National Fashion Chamber, stated in an online interview that Italy has been among the hardest countries hit by COVID-19, with death toll surpassing 20,000. He suggested, April 20 as a date to gradually reopen manufacturing activities in order to deliver fall/winter collections on time to shops around the world, and start production of spring/summer collections.
His sentiment was echoed by Claudio Marenzi, head of the fashion division at Rome-headquartered lobbying firm Confindustria, who feels while fashion factories have closed throughout Italy as a result of their status as non-essential businesses, “countries like France, Spain, Portugal, and Turkey” are gradually reopening manufacturing facilities.
Meanwhile, fashion giants like Gucci’s parent company Kering have put forth slashed outlooks for the year. Paris-based conglomerate Kering, whose brand Gucci sales consist of the bulk of annual revenues said last month it expects consolidated revenue for the first quarter of 2020, ending March 31, will be down by between 13 to 14 per cent in reported terms compared to the first quarter of 2019. The group expects sharp impacts for the second quarter, as well, as consumer opt out of luxury spending amidst the global health crisis.
