The Luxury Sector Is Expected To Lose $43 Billion Due To Coronavirus

The coronavirus continues its deadly spread, now claiming more than 2,700 lives and infecting at least 80,000. While the economic fallout cannot compare to the loss of life, there’s no denying that Covid-19 is starting to have a dramatic impact on the world’s economies. And the luxury sector is no exception. Current estimates suggest that the coronavirus could cause a whopping $43 billion in losses in the luxury markets in 2020, Business of Fashion reports. Fashion businesses were already experiencing financial strain as the disease caused major disruptions in the Chinese economy. Chinese consumers, after all, have been responsible for 70 percent of luxury’s growth since 2012. The outbreak caused many brands to temporarily shutter their stores amid new travel restrictions. As a result, brands have not been able to count on Chinese shoppers as they traveled abroad. Read more at Robb Report.