CHINA LUXURY SLOWDOWN

Shenzhen, Shanghai, and Jilin and Hebei provinces, which are manufacturing powerhouses, logged thousands of cases over the weekend.
The government has ordered the city of Shenzhen, which is home to top Chinese companies like Tencent and China Resources, into lockdown.  A week of home confinement is expected for the city’s 17.5 million residents, who can expect to undergo three tests in the coming days. . Factories, local transport and shopping malls, except for essential services, have all been shut down.
It’s estimated that Shenzhen attracted more luxury brands than any other Chinese city during the pandemic since the border with Hong Kong remained shut, forcing its high net worth citizens to shop locally. Some 27 brands including Hermès, Chanel and Cartier opened stores there last year.

The city is also home to one of the world's largest ports, shipping a wide range of products made within the Pearl River Delta, from Nike shoes to Huawei smartphones, to the rest of the world. The lockdown will further stress the global supply chain.
While Shanghai has not entered a full lockdown, movement has been restricted in and out of the city, school children are back to online learning, and neighborhoods around the outbreak areas are subject to a 48-hour lockdown and massive testings.
Certain malls and offices in the city are shut if they are linked to a positive case.
The sudden arrival of Omicron has disrupted all fashion plans and calendars, as shows and gatherings are no longer allowed, and all previous permissions granted by the government during fashion week had been revoked.
He is not too concerned over the lockdown’s impact on the brands, however, since Shanghai Fashion Week held a successful digital edition during the first outbreak back in March 2020 in partnership with Alibaba’s Tmall.