The coronavirus outbreak has kept as many as 1,000 Chinese fashion buyers from Europe’s top fashion shows this month as the luxury industry faces its biggest threat since the 2008 financial crisis.
China has become all-important to the global luxury and fashion industries as a driver of sales and a core manufacturing hub. Chinese consumers accounted for roughly 40 per cent of the €281bn spent on luxury goods globally last year, according to Jefferies, but drove 80 per cent of the growth, powering sales increases at companies such as LVMH and Kering.
The outbreak has also started to disrupt supply chains for more mid-market apparel, with retailers and fashion brands expressing concern about whether Chinese factories will be able to deliver autumn-winter collections as planned.