The future of luxury fashion

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Chanel

The pandemic of the new coronavirus that is making the luxury brands to rethink their business models. In addition to the changes to the industry, luxury has to face a hard reality: the lack of chinese tourists, who accounted for two-thirds of all sales in the sector in the whole of Europe.

Remo Ruffini, chairman, president and chief executive officer of Moncler, waiting for the blow suffered to the demand-side causes of changes in all aspects, from design through to tactical sales.

“If it is not possible to operate as usual, it’s the perfect time to redefine the new normal,” says the Financial Times.

Remo Ruffini

The Italian manufacturer believes that now is the time to reinforce the segment of the digital redesign of the store network, establishing a relationship of greater proximity to, coming up with new ways to sell their collections, and to re-consider how to engage with your customers.

Even so, the president, Moncler, admits that “the fashion industry is a very physical, we need designers, fashion accessories, textiles, everything can be managed from a distance”.

To the extent that it is considered a short-term priority will be to sell stock, especially the clothing in the stores. However, one of the brands that have flagship stores will be more discounts and make the best use of the retail outlets that are less visible in order to sell the surplus.

Companies such as Chanel and Louis Vuitton, have climbed some of the prices are between 5% and 17%, in order to compensate for the increase in costs and protect margins.

In a study carried out by McKinsey for the National Chamber for Italian Fashion and Pitti Immagine, the organizer of the trade events, the containment has boosted the online sales of luxury goods.

The article presents a survey, which responded to more than a thousand clients in the U.S. and in Europe, where it was seen that 24% of the respondents had purchased only through the Internet, for the closing of shops, and 76% proved to be good experience for him.

Carlo Capasa

In addition to this, the forecast predicts that the online channel is expected to grow to 28% to 30% by 2025, compared with 12% in 2019.

The desconfinamento, London, Paris and Milan as they prepare to celebrate their fashion weeks via the internet in June and July to showcase the new collections, going well with the travel ban.

“The logic, behind-the-week-of-fashion-online – [de Milão] is it that we have to support the chain of retail stores,” explains Carlo Capasa, the president of the National Chamber of Italian Fashion.

Capasa says that it does have some of the 67 thousand small manufacturers of leather goods, leather and kashmir, and that many of them will go bankrupt” if the Government does not give grants, putting them at risk of a 100-thousand new jobs.

After the re-opening of the stores in the group, Kering, has revealed that the signs in the first weeks after their confinement, are very encouraging.

“The number of people in the stores were higher than expected, and there are even more customers to buy it, which says a lot for the fortitude and loyalty of our local customers,” says the owner of Gucci.

In spite of the Moncler, LVMH and Kering have announced the strong demand in China, ever since the retail stores have begun to re-open at the end of the first quarter, with a few in the industry anticipated a quick recovery.

The chairman of Richemont. Johann Rupert, even said “severe financial consequences” that could last for up to three years of age.

Johann Rupert

A position that is in line with forecasts in the WEB, that you are a drop of 17% this year, as in the Recently predicted a fall of between 20% and 35%. Given it appears right up until the year 2022 or 2023, the sales will reach a record 281 million euros in the last year.

While international travel is not permitted, it is essential to the recovery of more chinese customers to buy luxury goods in the country.

On Friday, Burberry reported that sales to the chinese, had grown up because, in the past few weeks, the consumers were found to be more at the national level, to the detriment of a foreign country.

Erwan Rambourg, analyst at HSBC, fast-forwards, even though the luxury brands are expected to bet on in the shops in China than in Europe.

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