Deeply exposed to China, Burberry's share price was hit as investor confidence fell to new lows but the brand is not alone in this crisis. The world's market has been over-dependent on China.
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Last week, Burberry Group shares fell after announcement that the coronavirus (COVID-19) was hitting sales in its biggest market, China. And it’s not alone, prior to the outbreak, Kering Group, the owner of rival brand Gucci posted strong performance for January driven by Chinese customers but following spread of COVID-19 which has infected over 70,000 and caused the deaths of more than 1700 so far, Gucci has been negatively impacted on sales, said the CEO during its fourth quarter earnings call. ?We have a strong drop in traffic and in sales over the last 10 days,? – Gucci CEO Francois-Henri Pinault discussing its fourth-quarter earnings.
To date, Burberry has closed 24 out of its 64 stores in the mainland, while Gucci closed half of its stores, many brands have opted to reduce operating hours over boutiques which remain amidst significant footfall declines.

Without doubt, the coronavirus is wreaking havoc on global economies from a demand-side position considering that China with with a GDP of $25.27 trillion, hitting $36.99 trillion by 2023, is after-all the world’s largest economy,  But when the country’s nickname just happens t...