Suppliers of textiles and leather goods told Reuters that demand had been slashed from the likes of Gucci, Prada and Salvatore Ferragamo.
"We were producing 880 to 1,000 bags a month for Gucci. In February we made 450 and we have no orders for March," one owner of a supplier to the Kering-owned luxury brand told Reuters.
Italy has the largest cluster of Covid-19 cases outside China, and on Monday, a lockdown imposed on the worst hit regions and cities in the north, including financial and fashion capital Milan, was extended to the entire nation.
The tail-end of fashion month was hit by mounting concerns about the spread of the virus in Europe, with some editors leaving Paris fashion week early, while Giorgio Armani’s fashion show was displayed to an empty room and streamed online.
Like many other industries, the $320 billion luxury goods sector is wracked with uncertainty as to how long the effects of Covid-19 will last, with many retailers saying that they are monitoring the situation closely.
"The outbreak of COVID-19 has already negatively impacted the luxury industry," Fflur Roberts, head of Luxury at Euromonitor International, told Forbes. "Luxury companies such as Burberry, Tapestry and Capri, have already adjusted their sales forecasts for 2020 down."
Tangent: Italy is the 5th largest market globally for personal luxury goods, with leather goods dominating sales, Roberts said. Meanwhile, in 2018, Chinese shoppers accounted for one-third of luxury goods purchases, according to Bain & Company.
Crucial comment: Honor Strachan, retail analyst at GlobalData, told Forbes that while brands might be insulated in the immediate term, if the public health crisis continues, it could have adverse effects on stock levels as far as the Autumn and festive seasons.
