The Total Loss Of Italian Fashion Industry May Reach 60 Billion Euro In 2020

 

        The epidemic situation and the development of e-commerce have severely restricted the Italian retail market, and the new shopping habits promoted by the epidemic have also been further strengthened. This is confirmed by the data in the latest report, report retail fashion high street 2021, jointly released by world capital and the Federation of Italian fashion consormia.

The epidemic has had a huge impact on the Italian fashion industry. The Italian Fashion Federation predicts that the total consumption of the fashion retail industry alone will be 20 billion euro in 2020, while the loss of the whole fashion industry will reach nearly 60 billion euro due to the implementation of epidemic prevention measures, the lack of tourism shopping (more than 7.5 billion euro consumption by foreign tourists in 2019) and a large number of public and private enterprises taking remote office, 20000 fashion stores were closed permanently and more than 50000 jobs were affected.

At the same time, the trend of sales continued to decline, but the decline in February's performance compared with the same period last year narrowed. And, while the situation remains complex, Italy will also look forward to a trend of retaliatory consumption. According to the Italian Fashion Federation, compared with the same period in 2020, the decline in sales in February this year narrowed slightly (from 88.9% to 66.5%), the stability increased from 7.7% to 19.4%, and most importantly, the sales growth rate increased from 3.4% to 14.1%.

Renato Borghi, President of the Italian Fashion Federation, stressed that the government needs to take immediate intervention measures to support the recovery of the sector, including: appropriate compensation based on the loss of turnover; Tax credit for commercial property leasing; Tax credit is given to all inventory related businesses in the fashion supply chain; Injection of new working capital and guaranteed credit; Deferred repayment of credit; Delay in payment of taxes; We will temporarily reduce the value-added tax on fashion products to 10% to support and stimulate domestic demand. Finally, the Federation also hopes to reduce taxes on labor costs across the fashion supply chain.

In terms of rents, in northern Italy, the average decline was 6% compared with before the outbreak. Specifically, commercial streets with the most severe decline in rental value are located in southern Italy, such as Corso Italia in Catania (- 16%), followed by via calabritto (- 15%) in Naples.

        But in terms of rental value, the situation in the north is more encouraging, although the value has declined compared with the previous six months, Mo in Milan Ntenapoleone is still the most luxurious shopping street in Italy, with an annual rent of 10500 euro per square meter. The net contraction of the retail market is also reflected in the smaller demand area (square meters): during the whole epidemic period, the market value has decreased by 10% compared with that in 2019, and the market demand is increasingly biased towards the more restrained space of area.