Coronavirus exposes China Dependency problem: How it affects Global Luxury
As European and American economies awaken to the China dependency problem, the Luxury industry will find its new growth engine in emerging Asian markets
The post Coronavirus exposes China Dependency problem: How it affects Global Luxury appeared first on LUXUO.
Covid-19 is global, by now it is also self-evident that the coronavirus pandemic goes beyond mere health crisis, and it is also an economic pandemic as national central banks project severe recession amidst the backdrop of an IMF chief dropping the ?depression? descriptor on the global market. The resulting global lockdowns from covid-19 have also awakened many brands about the pitfalls of growing margins simply by shifting supply chains to China or depending on Chinese consumer demand.
Shanghai-based consultant Hervé Roland Rogazy told jingdaily that ?China was supposed to be the answer for everything: supply chains, customers? Everybody wanted to jump into this huge and lucrative market. But [they are discovering] it is mostly smoke and mirrors.? Rogazy advises brands looking to expand in China.
Coronavirus exposes China Dependency problem: How it affects the Global Economy (and the Luxury segment)
Covid-19 exposes China?s precarious position in all tiers of the luxury market. Before the coronavirus pandemic, brands were jumping on the China production and consumer bandwagon; today, Rogazy says that it is now the Chinese factories who have come knocking instead.
Indeed, Zara owner Inditex began increasing output ...
The post Coronavirus exposes China Dependency problem: How it affects Global Luxury appeared first on LUXUO.
Covid-19 is global, by now it is also self-evident that the coronavirus pandemic goes beyond mere health crisis, and it is also an economic pandemic as national central banks project severe recession amidst the backdrop of an IMF chief dropping the ?depression? descriptor on the global market. The resulting global lockdowns from covid-19 have also awakened many brands about the pitfalls of growing margins simply by shifting supply chains to China or depending on Chinese consumer demand.
Shanghai-based consultant Hervé Roland Rogazy told jingdaily that ?China was supposed to be the answer for everything: supply chains, customers? Everybody wanted to jump into this huge and lucrative market. But [they are discovering] it is mostly smoke and mirrors.? Rogazy advises brands looking to expand in China.
Coronavirus exposes China Dependency problem: How it affects the Global Economy (and the Luxury segment)
Covid-19 exposes China?s precarious position in all tiers of the luxury market. Before the coronavirus pandemic, brands were jumping on the China production and consumer bandwagon; today, Rogazy says that it is now the Chinese factories who have come knocking instead.
Indeed, Zara owner Inditex began increasing output ...
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