Italian Fashion Industry After The Epidemic: Only A Quarter Of Enterprises Have Not Encountered "Financial Crisis"

During the blockade caused by the new coronavirus, Italy's fashion industry was forced to close down on a large scale. By the end of July, less than 30% of the enterprises had not resumed production.

According to a survey conducted by cna federmoda and local global on the Italian textile, clothing, leather and footwear industry, one fifth of Italian fashion enterprises shut down for at least six weeks during the epidemic period, and the proportion of enterprises with nine to ten weeks of downtime also reached 10%.

By the end of July, more than 70 Italian fashion enterprises have resumed production. Another 15% plan to resume production within 2020, 3.3% of them will be closed down completely, and 10% of them are unable to give the exact time to return to work. Leather goods is one of the most rapid industries to restart, and 85.7% of them have resumed production by the end of July. The companies surveyed included brands, retailers, contractors and parts suppliers.

However, even the enterprises that have resumed work still need to face the problems such as the decline in the number of orders and the financial tension. Compared to at least two-thirds of the business's sales, the loss is more than 30%.

Only 7.2% of companies said they would maintain their investment plans for 2020, and three-quarters of corporate debt increased. A large number of enterprises reduce their pressure by means of layoffs, loans and negotiations to reduce rent, and seek subsidies from the government. Only 10.5% of enterprises did not apply for relief from the state, and more than half of enterprises applied for loans from banks. Only a quarter said they had no financial difficulties.

"The impact of the epidemic on the fashion industry is enormous," said Marco landi, President of the Italian handicraft sector and cna federmoda. 2019 is satisfactory, while the first few months of 2020 are quite the opposite. We are looking at the further impact of the epidemic. "