Dubai, photo: Noah Bikoro / Unsplash
The war in Iran has brought new problems to the global fashion industry.
A new wave of problems related to the war in Iran has engulfed the fashion industry and thrown the luxury segment into disarray, writes the Italian Laconceria.it. Empty shopping malls in Dubai, canceled flights, soaring energy prices, and strained supply chains, which are once again unsteady, are complicating planning and putting trade relations between the countries on hold.
The Gulf region was considered one of the most dynamically developing in the premium goods segment. While it couldn't boast the same sales volumes as the US and China, it accounted for an average of 6% of luxury brands' revenue, with peaks of 8% for large groups.
The market was expected to grow by 4-6% in 2025 and another 6% in 2026. These promises are now crumbling: store closures for safety reasons and the collapse of airport retail have already led to a loss of half of March sales.
Manufacturers are also watching the situation with trepidation, as this regional conflict will have global implications. Italian leather and footwear manufacturers actively participated in the recent APLF conference in Hong Kong. The Italian association UNIC – Italian Tanneries assembled a pool of 40 companies to represent them at APLF. Following the event, the Italian participants summarized their impressions and attempted to assess their sales prospects in the Chinese market.
As Laconceria.it reports, Asian buyers are currently waiting for the crisis to develop and, before confirming orders, want to gain an understanding of prices in the face of a possible resumption of inflation.
The world is experiencing another phase of global instability, and with it, supply chains that have not yet fully recovered from the effects of the COVID-19 pandemic.
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A new wave of problems related to the war in Iran has engulfed the fashion industry and thrown the luxury segment into disarray, writes the Italian Laconceria.it. Empty shopping malls in Dubai, cancelled…
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