Since the outbreak of the financial crisis, the global luxury goods industry, which has been hit hard, has once again exposed major bad news: Italian fashion industry giant IT, which owns well-known brands such as Gianfranco Ferre, and also has production and sales licenses for high-end brands such as Versace. Holding Group has warned that it may be forced to file for bankruptcy protection.
The group is another big-name luxury goods manufacturer recently affected by the financial crisis and economic recession. At present, the overall situation of the luxury goods industry is deteriorating day by day. Sales of perfume and jewelry have dropped sharply. Many high-end fashion conferences have been suspended. Various fashion companies are facing the pressure of significant cost reduction. The Paris Fashion Week that ended not long ago was shortened from four days to three days in previous years, and some companies with relatively small scale and reputation have also withdrawn. “Daily Style” magazine editor-in-chief Godfrey Denny predicts that under the current economic situation, fashionable menswear designers will carefully choose the luxury route.
Last week, the global luxury goods giant LVMH Group also warned after releasing its 2008 profit report that due to the decline in sales of perfumes, luxury watches, etc., it is still impossible to predict the development prospects in 2009. The group also said it may be forced to lay off employees in response to the financial crisis.
