Page 15 - Ragtrader Magazine April 2020

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NEWS FEATURE APRIL 2020 15 CORONAVIRUS
US$7 billion in revenue for the Cambodian economy each year.
At the press conference of the Myanmar Garment Manufacturers Association, the industry experts conducted a long discus- sion but eventually no solution was found. They only hope that China could control the situation as soon as possible.
When can China’s raw materials resume normal supply to Vietnam? Uniqlo’s par- ent company, Fast Retailing Co., Ltd., is deeply concerned about the unpredictable further huge losses.
As for Cambodia’s huge number of gar- ment industry workers, I can’t be as opti- mistic as Hun Sen about whether China can free up its hands to produce and deliver the raw materials that Cambodia is in an urgent need of.
Let us turn our eyes to Europe on the other side of the planet.
In every February and March, the long- established Fashion Week is always the focus of the global fashion industry. In recent years, Chinese faces have appeared more and more in European Fashion Weeks. There were talented young Chinese designers, exotic Asian models, and espe- cially Chinese fashion editors and KOLs who can introduce the brands to Chinese middle-class consumers with incredible purchasing power.
But this year, things were different.
The number of audiences on the shows during the London Fashion Week (14-18 February), the Milan Fashion Week (18- 24 February) and the Paris Fashion Week (24 February-4 March) had dropped significantly.
The National Chamber of Italian Fashion launched an event called ‘China, We Are With You’ at the opening cer- emony of the Milan Fashion Week and arranged a series of live broadcasts and online showrooms for the absent Chinese audiences.
All major brands are trying their best to extend their tentacles to China and compete for online resources on the major internet platforms in China.
Gucci opened up a live broadcast chan- nel on Weibo to allow Chinese buy- ers staying at home to watch the show. LVMH, Chanel and other brands have also followed up to establish their live broadcast channels.
However, would the Chinese consum- ers who were not allowed to go outside and stayed home in pyjamas be in the mood to appreciate these exquisite big-name shows?
In Nanjing, Dong, who worked on the weekend in the office alone, sounded a lot more excited on the phone. “All of my cooperating factories have just been reopened.”
“But the situation is still very compli- cated. All returning workers must declare whether they have left the local area within 14 days, and they cannot return to work without local government’s approval.”
“Someone from the local community administration department comes to inspect everyday. They check whether the business stocks sufficient masks for employees. The requirement is two masks per employee per day and
at least stock for one-week usage. They check whether the busi- ness measures every staff’s body temperature every morning and make detailed record for inspec- tion. In the factories, workers must wear masks, and machines must maintain an interval of more than 1 metre.”
“Anyway, it’s finally back to normal. All the shipments have to be delayed, but at least it hasn’t gotten out of control.” Dong thought for a while and added, “Now we are mainly stuck in logistics. The deliv- ery of the fabric and accessories sourced from other provinces is two or three times slower than usual. “
In Sydney, the KOL Gigi has accepted the reality in the overwhelming media report about the Covid-19. Pan told her that the factory had resumed work. However, a large number of backlogs of production orders need to be completed on a first-come-first-served basis, and
Gigi’s shipment has to be delayed to April. Gigi filmed a clip for her 300,000 fol- lowers around the world. In the video, she describes the current situation of Chinese clothing factories and announces the post- poned release date. Gigi was pleased that the video received countless praises, and few people blamed her for not keeping her word. The most deserted Fashion Week in history is coming to an end. Tens of thousands of garment factory workers in Southeast Asia are anxiously waiting on the brink of unemployment. Chinese factories have resumed work but produc- tion capacity cannot return to normal in the short term. But what I am most con- cerned about and want to alert the global fashion industry is the quiet changes of the Chinese middle class consumers’ mindsets
and behaviours.
The urban men and women who stayed
at home for extended holidays gradually became accustomed to the minimalist lifestyle with no-makeup faces and old pyjamas, and began to examine the past
Perhaps the impact of the Covid-19 on the world fashion industry has just begun.
of excessive consumption. For the young Chinese middle-class generation born and raised after China’s economic reform, this sudden disaster has given their smooth life a huge shock. They have become more concerned about health, more inclined to save rather than splurge, and more cau- tious and conservative.
It can be expected that the impact of the Covid-19 on China will be in all aspects, including consumer behaviour. The flashy consumer bubble may be completely bro- ken this year. Perhaps the impact of the Covid-19 on the world fashion industry has just begun. ■