Russia’s special war in Ukraine has led to a series of micro and macro influences, with a particularly strong impact on the lives of European people.
(Photo: Business Insider)
Fashion world
The invisible influence of the Russia-Ukraine war on domestic fashionistas
Reasons for USD appreciation
Europe is perhaps facing the heaviest dual crises of this century as inflation continues to set new peaks.
Inflation index in European countries as of June 2022.
Across the ocean, the US is also facing the possibility of recession in the near future.
(Photo: CNBC)
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Will fashion brands suffer losses?
Contrary to what we think, the increase in the value of the USD will bring profits to European-based fashion brands.
(Photo: Fashion Network)
However, to minimize currency risk, brands have historically used fixed-term contracts known as hedging contracts.
(Photo: Travel Earth)
Benefit or loss for luxury consumers?
The time of the appreciation of the USD coincided with the time when international tourism showed signs of strong recovery after the pandemic.
Shopping street in London, England.
A Louis Vuitton bag that sells for $2,030 in the US is now only €1,500 (or $1,528.79) in France.
Fashion world
Why did high-end fashion brands suddenly increase prices amid the pandemic?
This attractive price also contributes to increasing the appeal of high-end brands in the eyes of aspirational shoppers (customers who are obsessed with high-end fashion but do not have solid economic potential, and consider owning
How should the fashion industry respond?
Informing American customers about the tax refund policy will be one of the actions that contribute to increasing the revenue of brands in Europe.
(Photo: Skift)
In addition, experts also believe that the large difference in selling prices of luxury products can lead to the possibility of forming a tax-evading hand-carried goods market in the US like what has been happening in the Mainland.
(Photo: Bloomberg)
With inflation, labor and energy costs continuing to rise, it is inevitable that high-end fashion houses consider increasing product prices.
Compare the selling prices of classic bag models from CHANEL between 2021 and 2022. (Photo: Chic Pursuit)
Typically, in March 2022, CHANEL increased the price of the Large Classic Flap Bag model by up to 13% compared to the previous price increase in November 2021.
(Photo: Edition KLFW)
(Photo: Grazia Daily)
