One must look towards the East with confidence. Because on the other hand, only winds of (possible) crisis are blowing from banks, which are failing or at risk of failing. The end of the Zero Covid policy in China brings with it hope for business, not only for the high-end biggies, but above all, Mario Boselli points out, for the small ones.
Confidence in China
“Big fashion brands in the three-year lockdown have always sold in China”. Boselli is the president of ICCF (Italy China Council Foundation), an institute created from the merger of the Italy China Foundation and the Italy-China Chamber of Commerce. And by virtue of his pulse of business in the People’s Republic, he feels compelled to say that Beijing’s return to free society is good news, especially for the small ones, “those who had no distribution structures in the territory”.
It is they, independent brands and SMEs, who really benefit from the reopening of borders: “Chinese tourists will return to our cities and will also buy products from smaller brands”, Boselli tells MFF. “In June, for fashion week, we also expect buyers to return”. It is an opportunity to be seized, even with the personal commitment of entrepreneurs. “There are still some difficulties related, for example, to visas and travel. Direct flights are only just starting up again. But at this moment in time, in order to resume dynamism in a vigorous manner, we need to meet in person”.
Meanwhile, bad news from the banks
Of course, Boselli emphasises the opportunity that China represents for those who did not have the means to make up for the 2020-2022 closures. But even the bigs need a munificent People’s Republic to support growth programmes. Because in the meantime, the problems of western finance, which have already materialised in the Silicon Valley Bank and Credit Suisse crises, are already cooling consumption in the United States. And they risk affecting the usually most anti-cyclical category possible: that of the top spenders.
The customers, that is, who are so rich that they fly higher than the contingent difficulties. Business of Fashion writes: if the collapse of credit institutions were to hit their financial assets, even the super-rich could lose the desire to spend on luxury goods. There are precedents: it happened after the 2008 crisis and the Chinese crackdown on consumption in 2015. It cannot be ruled out from happening again.
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