Italy: Confindustria Moda calculates the effects of CRV on orders and revenue

Italy: Confindustria Moda calculates the effects of CRV on orders and revenue

The impact of Coronavirus on Italian fashion now has a number. 2020’s CRV has caused companies to lose about 36.2% of revenue on yearly base on average. If that wasn’t enough, the segment lost circa 40.5% of its usual orders. The research study was conducted by the Centro Studi of Confindustria Moda, as it photographs a segment seriously hurt by the pandemic, where 90% of sampled companies has made a request for government subsidies. In 72% of cases, over 80% of any company’s employees were put on furlough.

The sample

The results of the analysis came from the analysis of 320 questionnaires completed between April 7th and 17th. With regards to the leather segment, 28% of this sub-group was made of footwear manufacturers, 5% leather goods and 9% fur. The questionnaire covered the entire country, with some regions such as Lombardy, Veneto, Piedmont, Tuscany and Marche being the most represented.

CRV effect

At the time of the survey, 76% of companies was completely shut down. Only 24% was partially open, with departments such as administration, e-commerce, logistics. On average, 66% of those surveyed were working remotely, accounting for about 13.4% of the workforce. With regards to remote working, 61% of those employed by footwear businesses were in fact employing the practice, while the number of remote workers was 75% for those in the leather goods’ group and 29% for the fur sub-group.

 

Damages

51% of companies suffered losses of revenue between 20% and 50%, in the quarter going from January to March, while 20% of businesses lost over 50% of revenue. Circa 29% limited damages to below -20%. Coronavirus though, also caused orders to be cut. 36% of those active in the footwear segment lost over 50% of orders, while 45% expects a decrease between 20% and 50%. Businesses in the leather goods segment experienced similar patterns: 38% of them lost over 50% of orders, while 44% of businesses lost between 20% and 50%. And last, orders decreased by 50% for 36% businesses of the fur group, and by between 20% and 50% for 50% of companies.

And now, phase 2

The top 3 reasons for concern among businesses sampled were client relations, the financial wellbeing of companies and the cancellation of tradeshows. For these reasons, those interviewed by Confindustria Moda, believe the priorities to be: government measures to guarantee liquidity, monetary assistance to individuals and fiscal reforms.

Photo from the archive of La Conceria

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