French Fashion Alliance: 79% Of The 300 Brands Have A Loss Of More Than 50%.

 

The survey shows that 54.3% of young designer brands can maintain normal business activities during the epidemic period. However, of these brands, 20% of the brands indicated that business losses reached more than 70%; 22% of the brand operating losses were between 50%~70%; only 21% of the brand operating losses were below 50%.

 

The survey also found that more than half of the 300 brands were engaged in wholesale business. But affected by the epidemic, more than 60% of the brands had to suspend this part of their business activities. Worse still, nearly half of the brands encountered payment delays in the wholesale trading process.

 

 

 

In addition, only 39% of the respondents received the "solidarity assistance fund", and 7.6% secured state guaranteed loans. Since government subsidies need to refer to the loss of operating income in 2019, 41% of the brands have had to stop production because of lack of government funding.

 

For such a situation, FFU expressed great concern: "if the production is stopped at this time, many brands will not be able to deliver the order, and no funds will be available for the next project." In the long run, these brands will be bankrupt, so the development of French fashion design is even more uncertain. "

 

At the end of the press release, FFU pointed out: "digital channel deployment is the best solution for young brands to reduce risks and increase revenue growth. If young brands do not pay attention to the development of all channels, they will become more and more backward."