Italian Prime Minister Giuseppe Conte announced a lockdown for the entire country as the number of Coronavirus cases continues to rise.
Before the country underwent a complete lockdown, the fashion-and-textile industry alone was worth US $ 107.9 billion!
This move has hit the luxury sector on the face of it. For instance, the headquarters of Prada, Armani and Versace that are located in Milan have been hit hard by this lockdown.
Other international brands such as Louis Vuttion and Stella McCartney have their manufacturing factories in the northern region of the country. The blow is not just limited to the northern region’s production houses, but southern as well which is home to leather goods manufacturer; not to neglect the fact that leather goods are top performing sectors of a luxury brand.
Buyers around the world are cancelling their Italian textile and product orders. This is creating a ripple in the entire apparel supply chain – right from companies that produce fabrics to the manufacturers of apparels and accessories.
There arises another important question whether the Italian factories can sell their goods or not!
Adding to this crisis is the (in)correct timing as industry had just debuted Spring/Summer collections. Brands are now worried about shipping and selling the stock inventory on which they had spent thousands to produce.