Markets

Consumers have cautiously begun to return to stores, and security measures such as temperature controls and use of face masks are imposed in shopping malls.

In Italy or Spain, two of the most affected countries, the decrease in sales could reach up to 40%, according to Boston Consulting Group data.

Before the coronavirus outbreak, consumer confidence was already decreasing in the eurozone, while in Japan and the United States it was recovering.

The decrease in production, together with the fall of demand and the paralysis of cotton exports to the United States are some of the factors that motivated the price fall.

American international investment bank, Goldman Sachs has lowered the forecast of the main economies in the Eurozone and anticipates its GDP to plunge by 1.7%.

The current pandemic has led to nationwide lockdowns. For American retailers, the path will be even harder.

According to the American rating agency, the most exposed sectors are those linked to travel and discretionary spending, such as fashion or retail, excluding the alimentary sector.

Italy assigned 25 billion euros (27.8 billion dollars) to moderate the pandemic’s consequences, while France ensured that “no companies would be left exposed to the risk of bankruptcy”.

Industrial production, meanwhile, has fallen by 13.5%, while investment in equipment has decreased by 25%, according to the country’s statistic office.

Italy, France, and Spain have decreed the closing of shops, while most fashion giants have shuttered their stores in North America.

The western Asian country has about one hundred confirmed coronavirus cases, consequently joins the measures taken by Italy, Spain, and the United States during these past few days. Only grocery stores and pharmacies will remain open.

The crisis may presents an opportunity for the channel, but not for the sector because the consumer will prioritize the purchase of basic foods unless the current situation lengthens.

Last Friday, President Trump declared a national emergency over the coronavirus. Nike, Everlane, Abercrombie & Fitch are a few amongst many that have ceased their operations over the coronavirus.

All stores open to the public that are not of primary necessity will have closed their doors on Saturday in France, along with a similar measure taken in Spain that same day.

President of the Government, Pedro Sanchez, explains that the actions will extend for the next fifteen days.

The Colombian fair organizer, Inexmoda, expects textile exports from Colombia to the United States to increase in 2020 as brands seek alternatives away from China.

Italy has proceeded to closing all its retail stores, excluding supermarkets, fuel stations to fight the spreading of the pandemic.

Inditex has near 400 stores in the country, H&M operates 181 points of sale and Primark has five stores in the third largest European economy.

According to the City Momentum 2020 ranking, published by the real estate consultancy JLL, Hyderabad emerges as the most dynamic city in the world, dethroning number one in the 2018 ranking, Bangalore.

On a month-on-month basis, the sector’s prices in the US market registered an increase of 3%, according to data from the US Bureau of Labor Statistics.

Christine Lagarde, president of the European Central Bank (ECB), emphasized that the organization is examining all its tools to combat the crisis.

Euromonitor has cut its growth forecasts of the world economy by 2020 by 0.1 points and 0.3 points due to the outbreak of the coronavirus.

The European Apparel and Textile Organization reclaims “reality checks” and close monitoring of the implementation of the strategy, claiming that the EU has “failed to deliver” on previous plans.

Year-on-year, the economy of the eurozone grew by 1%, while the whole European Union expanded 1.3%.

International benchmark Brent crude plunged 31% yesterday, reaching 33 dollars. However, previous fluctuations didn’t have an impact on fashion, despite it’s a sector dependent on oil throughout all its value chain.

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Modaes Global - Markets | Macroeconomic news related to the fashion business. All the news of macroeconomic indicators of the textile and fashion industry. - Modaes Global.

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