According to “Functional Textiles”: On March 18, according to foreign media reports, following Hermès and Gucci, a brand of Kering Group, Chanel also decided to suspend production. Hermès announced the temporary closure of all 42 of its factories.
The new crown storm is sweeping the world,
Former Trump advisers warned: The coronavirus may trigger another Great Depression.
CNN report screenshot
A large number of well-known brands have announced the discontinuation of production
Your favorite Hermès and Gucci , Chanel and other world-famous brands have successively announced the suspension of production.
On March 18, according to foreign media reports, following Hermès and Gucci, a brand of Kering Group, Chanel also decided to It has suspended production and will close its factories in France, Switzerland and Italy over the next two weeks.
Chanel women’s shoes (official website screenshot)
“In accordance with the latest government directives, Chanel has decided to close all of its production sites in France, Italy and Switzerland, as well as the production of haute couture, ready-to-wear, fine jewelry and jewelry.” Chanel said in a statement.
Due to the new crown epidemic, luxury brands owned by French Kering Group have closed 6 production plants in Italy.
Luxury brand Hermès also announced the temporary closure of all 42 of its factories.
Gucci stated that in order to protect the health and safety of relevant personnel, all production plants in Italy will be temporarily closed. Considering that Italy is still under lockdown, it is expected that Gucci will continue to close its factories after March 20.
In addition to the forced closure of factories and stores, the most important annual holiday shows of luxury brands have also been postponed or even canceled.
Last week, Gucci just announced the cancellation of the 2021 resort series show in San Francisco on May 18. The new time and location of the show will be announced at a later date and has not yet been determined.
Gucci, Versace, Prada, Giorgio Armani and other luxury brands have also made the same decision, which means that all business in the luxury goods industry may be at a semi-standstill in the first half of the year.
In addition to the shoe and clothing industry, the automobile industry is not much better.
According to statistics, due to the impact of the new coronavirus epidemic, as of March 19, Volkswagen, BMW, Toyota, Ford, Tesla, etc. 14 major multinational automobile groups have announced the closure of some factories. The total number of factories affected worldwide has reached more than 100.
In the wave of globalization, no country or individual can stay away.
United States 2.25 million People are unemployedA record high
On March 19, according to a report by the well-known foreign media CNN:
Goldman Sachs predicts that 2.25 million Americans will file for first time unemployment this week, a record high.
Americans are starting to lose their jobs due to the coronavirus pandemic, and economists expect the situation will only get worse here. And it’s fast.
Early Thursday, a government report showed that 281,000 Americans applied for first-week unemployment benefits last week. The sudden jump of 33% a week ago was the largest percentage increase since 1992.
But next week’s report could be worse, according to economists at Goldman Sachs.
They predict the report will show 2.25 million Americans filed for first-week jobless benefits this week, eight times the number last week and the highest on record .
The credit crisis will worsen the economic recession
CNN reports: Chaos on Wall Street could exacerbate economic pain.
The stock market has collapsed, dealing a heavy blow to consumer confidence. All gains have evaporated since President Donald Trump was elected. Airline, cruise and energy stocks were in free fall.
Worse, the financial system’s pipelines are in panic mode. The Federal Reserve is racing to pour money into unblocking those vital debts. The risk is that credit flows are cut off when households and businesses need it most.
Deutsche Bank economists wrote: “Concerns about credit and liquidity shocks have increased.”
The good news is that there is plenty, and central banks and policymakers around the world are launching a series of initiatives aimed at mitigating the economic and financial impact of the coronavirus.
Some economists are even optimistic about a rebound later in 2020.
But if the coronavirus outbreak isn’t under control by then, none of the predictions will matter. The health crisis must be addressed before a lasting recovery can be achieved.
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