France’s Prime Minister has confirmed that Monday 11th May will mark the beginning of the country’s “progressive” exit from lockdown, saying that bars and restaurants may open from early June in “green” areas including the French Riviera.
Édouard Philippe gave a televised address on Thursday afternoon, detailing his government’s plan for easing Covid-19 lockdown measures after nearly two months of confinement for the population.
The country has made enough progress in slowing down the spread of the virus and reducing strain in hospitals to gradually return to normal, Prime Minister Edouard Philippe said.
“From Monday we will progressively unwind the lockdown that started on 17th March… but the country is cut in two, with the virus circulating more quickly in some regions, notably in the Paris region, which is very densely populated,” he said.
The minister was referring to the map of red and green areas that details the difference in the local level of the spread of the virus and the pressure on hospital’s intensive care units.
“In the Paris region, the infection rate is falling slowly, but it remains very high, higher than we expected. That is why in these territories we will need to be extra vigilant.”
Beyond the Paris area, administrative regions around Calais, Strasbourg and Dijon will also remain classified as “red zones”, where some restrictions will remain – such as keeping parks, gardens and secondary schools shut.
In other parts of France – including the French Riviera – secondary schools, cafes and restaurants may open from early June if the infection rate remains low, Philippe said.
As of 11th May, people in France – or those travelling through France – will be allowed to move freely in an area of less than 100 kilometres from their home.
The interior ministry will publish a new attestation for travel purposes to ensure that this rule is upheld.
From this date, everyone over the age of 11 must wear a mask on public transport or face a fine of €135.
The coronavirus pandemic has killed almost 26,000 people in France since 1st March, though the number of new hospitalisations and ICU cases has fallen steadily in recent weeks.
Picture: Map of France and the active circulation of the virus according to departments, as of Wednesday 6th May
Day: 7 May 2020
Luxury goods market set to contract up to 35% in 2020
Faced with a global collapse driven by lockdowns and the shutdown of tourism in all key markets, the luxury industry faces a challenge like never before. After falling by an estimated 25% in the first quarter of 2020, the slowdown should accelerate in the second quarter and could lead to an estimated contraction of between 20–35% for the full year.
China has begun to lead the way toward a recovery and Chinese consumers are set to cement their status as crucial drivers of the industry, accounting for nearly 50% of the market by 2025. Luxury purchases made online have increased throughout the crisis and the online channel could represent up to 30% of the market by 2025.
These are the key findings from Bain & Company, advisor to the global luxury goods industry, in the ‘Bain & Company Luxury Study 2018 Spring Update’ released this week in collaboration with Fondazione Altagamma, the Italian luxury goods manufacturers’ industry foundation.
“There will be a recovery for the luxury market but the industry will be profoundly transformed,” said Claudia D’Arpizio, a Bain & Company partner and lead author of the study. “The coronavirus crisis will force the industry to think more creatively and innovate even faster to meet a host of new consumer demands and channel constraints.”
The coronavirus crisis takes a toll on luxury
Bain & Company estimates that the market for personal luxury goods declined by 25% in the first quarter of the year, as Covid-19 spread in Asia and then worldwide.
A strong start to the year in all key regions (Mainland China, Europe, America) was quickly offset by the imposition of lockdowns and the collapse of tourism, which amplified the decline in Europe. Luxury sales in Japan and the rest of Asiaalso declined, albeit at a slightly slower pace and the consumer mood globally remains subdued.
Online luxury has remained resilient, while traditional models of directly operated stores and department stores have seen sharp drops. Travel retail has been decimated by the shutdown of worldwide air travel.
“As consumers slowly emerge from lockdowns, the way they see the world will have changed and luxury brands will need to adapt,” said Bain & Company partner and report co-author Federica Levato. “Safety in store will be mandatory, paired with the magic of the luxury experience: creative ways to attract customers to store, or to get the product to the customer, will make the difference.”
All categories have seen declines, with accessories showing the most resilience and watches declining the most due to a lack of online sales platforms to offset the shutdown of physical channels.
The luxury market will face a difficult year ahead: Bain & Company expects that for the full year 2020, the market could contract between 20-35%, depending on the speed of the recovery.
Looking towards the future: what will the luxury market look like in 2025?
It will take time for the market to recover. Bain & Company anticipates that a recovery to 2019 levels will not occur until 2022 or 2023. Market growth will resume gradually from then on, reaching an estimated €320-330 billion by 2025.
“The speed of future market growth will depend on luxury players’ strategic responses to the current crisis and their ability to transform the industry on behalf of the customer,” said Ms. Levato.
Chinese consumers are set to confirm their place as the most important buyers of luxury, accounting for nearly half of all purchases worldwide by 2025. As a region, mainland China will account for 28 percent of the luxury market, up from 11% in 2019.
The online channel, already experiencing double-digit growth in 2019, will continue to gain share and account for up to 30% of the market by 2025. This goes hand-in-hand with the younger generations (Gen Y and Gen Z) becoming the majority of the luxury market.
Luxury players will need to face disruption head-on
Faced with a crisis like never before, luxury players will need to act now to create their future. Every aspect of the market, from creation to distribution, marketing to supply chain, and crucially the interaction with the final customers will need to be re-imagined to suit a changed world.
“Winning brands will be the ones that best interpret the zeitgeist all while remaining consistent with their inner DNA and individual story,” said Ms. D’Arpizio.
10 days coronavirus free
Reduced number of trains to discourage useage
The government said on Thursday evening that public transport services between regions would be severely limited in the coming weeks to encourage people to avoid unnecessary travel.
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FlightPooling to provide some relief from flight chaos
Photo: Pixabay