Ah, Italy... Fashion Big 3 "Concerns Over Fabric Supply Disruptions"

[Asia Economy Reporter Yujin Cho] The spread of the novel coronavirus infection (COVID-19) in Italy is being closely monitored by related industries for potential disruptions in the supply of Italian fabrics to domestic fashion companies. Following Italy's nationwide lockdown due to the COVID-19 outbreak, some brands using Italian fabrics are facing the worst-case scenario where production itself may become impossible.

On the 16th, a Samsung C&T official stated, "With Italy imposing a nationwide lockdown, the supply of locally produced fabrics may be affected," adding, "In the worst case, we are considering the possibility of halting the release of related products." Samsung C&T's clothing brand Beanpole uses premium Italian leather in some products. Amid the rapid spread of COVID-19 and movement restrictions across Italy, there is concern that fabric supply could be cut off due to factory shutdowns following government directives. The official said, "Currently, there is no impact on fabric orders for this spring and summer's new products, but if the situation prolongs, the repercussions are unpredictable."

LF also stated that since its fabric suppliers are spread throughout Italy, it is closely monitoring the situation. Although orders for the spring and summer season were completed last year, the autumn and winter season shipments, which begin arriving in early June, are a concern. An LF official said, "If the COVID-19 situation worsens and delivery deadlines are delayed by more than a month, we are considering emergency air transport or seeking alternatives from Portugal, Northern Europe, and other regions." Switching all imports to air freight to meet deadlines is expected to reduce profits due to increased costs. LF uses Italian fabrics in six of its brands: Hazzys, Daks, Jill Stuart New York, Maestro, Allegri, and A.T. Vanessa Bruno.

Companies that import finished products from Italy for domestic distribution are also worried about the impact. Shinsegae International imports and sells all finished products of the Giuseppe Zanotti brand from Italy. A Shinsegae International official said, "We completed purchases for this autumn and winter's imported products around late January, just before the rapid spread of COVID-19, so there is no direct damage at present. However, we are checking the situation daily with the Italian headquarters in preparation for a prolonged crisis."

Italy is classified as a high-risk country with the second highest number of confirmed COVID-19 cases and deaths after China. As the virus spread rapidly, the Italian government issued a lockdown order (residents' movement restriction) on February 22 for the northern regions where cases were concentrated, and on March 10 extended the lockdown nationwide, temporarily closing all stores with stringent measures. An industry official said, "The timing of the government lockdown coincided with the period when fabric orders for the autumn and winter season were placed," adding, "Currently, production is not disrupted, but we cannot rule out factory shutdowns depending on government policies."

[Image source=Yonhap News]

This content was produced with the assistance of AI translation services.