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The losses of Italian fashion in first quarter

The losses of Italian fashion in first quarter

The fashion system is one of the sectors most affected by the coronarivus pandemic. And while the recovery is likely to be slow, the Associazione Sistema Moda Italia (SMI) which represents 55% of Confindustria Moda, has presented a report on the performance of the sector. What emerged is that the system lost over 3.5 billion euros in revenue in the first quarter of 2020.

Among the many information collected, some data seem to be worrying; among the companies participating in the study, 49% reported a drop in orders between 20% and 50% compared to the previous year. Even exports, which always represent a large portion of the textile-clothing sector, could drop by 20%, causing a loss worth about 6 billion euros. Obviously, this blockade could have repercussions on the production chain, which could record a loss ranging from 7 to 9 billion euros in turnover.

13% of the companies that have been analyzed declared they had converted their production by manufacturing personal protection systems, including masks and gowns. A conversion that could still be useful given the great need for these tools.

A serious consequence of this deceleration is also that which affects employees; indeed, about 95% of companies said they had resorted to social safety nets, including unemployment insurance. Such measures affected about 80% of employees for 65% of the companies examined.

What entrepreneurs accuse the most, is the damage to the relationship with customers, the relationships between the different companies involved in the production chain, which has also revealed abuse by the most consolidated and largest companies that enjoy greater power thanks to their advantageous position. Following, the financial problems and those of liquidity and bureaucracy.

Finally, president of SMI Marino Vago underlined the lack of unity of the companies, which often move according to personal criteria, not pondered in harmony and cohesion.

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