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Will Online Retail Benefit Due To Coronavirus?

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Will Online Retail Benefit Due To Coronavirus?

The coronavirus outbreak has turned out to be a nightmare for all the countries and their economy. The worldwide spread of the virus is dangerously impacting the fashion industry. Keep reading this blog for detailed updates on how the fashion industry is responding to the outspread of the virus.

What is coronavirus?

According to World Health Organization (WHO), Coronaviruses (CoV) are a big family of viruses that causes illness ranging from the common cold to more severe diseases such as Middle East Respiratory Syndrome (MERS-CoV) and Severe  Acute Respiratory Syndrome (SARS-CoV).

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-Middle East Respiratory Syndrome (MERS-CoV)

Middle East Respiratory Syndrome (MERS) is an illness caused by a virus, specifically known as coronavirus. According to WHO it is a viral respiratory illness caused by the coronavirus, the disease was first identified in Saudi Arabia in 2012.

WHO states that a typical case of MERS includes fever, cough, and shortness of breath. There could also be gastrointestinal symptoms, including diarrhea.

Severe cases of MERS include respiratory failure which requires mechanical ventilation and support in an intensive care unit. The virus causes more severe disease in people with weakened immune systems, aged people, and people with chronic diseases such as diabetes, cancer, and chronic lung disease.

The mortality rate for people with MERS virus is approximately 35%. MERS is a zoonotic virus, transmits between animals and humans. The virus does not easily pass unless there is close unprotected contact.

-Severe Acute Respiratory Syndrome (SARS-CoV)

Severe Acute Respiratory Syndrome (SARS) outbreak was spread in 2003, COVID-19 and SARS are related genetically, but both the disease, in particular, are quite different.

SARS is more deadly but less infectious, WHO said that our knowledge about the epidemiology and ecology of SARS coronavirus infection and of this disease remains limited.

-COVID-19 in detail

Coronavirus disease (COVID-19) is a new strain that was discovered in 2019, last year, and has not been previously identified in humans. Coronavirus is zoonotic, just like MERS, which means they are transmitted between humans and animals. Detailed investigations found out that SARS-CoV was transmitted from civet cats to humans and MERS CoV from dromedary camels to humans.

The common signs of this infection include respiratory symptoms, fever, cough, shortness of breath, and breathing difficulties. In severe cases, this infection can also cause pneumonia, severe acute respiratory syndrome, kidney failure, and even death.


How rapidly is the coronavirus spreading/ or the timeline?

December 31, 2019- China reported several cases of pneumonia in Wuhan, China. The virus was not known until then.

January 5, 2020- Chinese officials ruled out the possibility that this was the recurrence of SARS, which killed more than 770 people worldwide in 2002-2003.

January 7, 2020- The new virus, coronavirus was identified by the World Health Organization.

January 11, 2020- China reported its first death, by a coronavirus.

January 13, 2020- The WHO reported its first case outside China, in Thailand. It was seen in a woman who arrived from Wuhan, China.

January 16, 2020- Japan's Health Ministry reported a case of the coronavirus.

January 20, 2020- The death toll in China jumped to 17, with more than 500 infectious people. Many countries blocked their flights from Wuhan.

January 27, 2020- The death toll in China touched 106, and around 4000 people were reported infected.

January 30, 2020- WHO declared coronavirus as a global health emergency.

The fatality rate of COVID-19 compared to SARS and MERS

The coronavirus is noted to be relatively milder than SARS and MERS, which belong to the same family of coronavirus family of viruses. The death rates appear to be 2% and 5%.

Global coronavirus toll
Dead: 3,100
Cases: 90,000
Spread: 73 countries & territories

Middle East Respiratory Syndrome (MERS); identified in Saudi Arabia in 2012
Spread to 27 countries
Confirmed cases: 2494
Deaths: 858
Fatality rate: 34%

Severe Acute Respiratory Syndrome (SARS); Emerged in southern China (Guangdong) in 2002
Spread to 30 countries
Cases: 8473
Deaths: 813
Fatality rate: 9.5%


Protective measure by WHO

You can take care of your health and protect yourself from the coronavirus by doing the following-

1. Wash your hands frequently- Washing your hands with soaps, handwash, and alcohol-based rubs kill the viruses present on your hands.

2. Maintain social distancing- Staying close to a person who coughs or sneezes can lead small liquid droplets of the virus transfer to your mouth or skin, which can further make you sick.

3. Avoid touching your face- Hands touch a lot of surfaces, which makes them in contact with different viruses and hands can transfer the virus to your eyes, nose or mouth.

4. Practice respiratory hygiene- Cover your mouth or nose when you cough or sneeze.

5. If sick, go for medical care- If you feel cough, cold, or fever step ahead and take urgent health emergency.

Corona's economic impact on China

Corona's economic impact on China

The Chinese enterprises have been suffering to get higher production due to extended Chinese New Year's holidays. Further, the outbreak of the coronavirus is affecting China's foreign trade, mainly in the sphere of exports. Also, China's import bill is increasing due to health emergencies and the shutdown of industries.

COVID-19 has led to blockage of transportation which alone has caused huge supply chain disruptions.

-There is a reduction of road trips this year than in 2019. After the most celebrated event of China, the Chinese New Year's, statistics of road trips shows that they are reduced by 78%.

-Coal consumption went down and remained 38%from its pace earlier in the year.

-People are being quarantined by the government to ensure there is no further spread of the disease.

-There are almost nil economic activities in the region most affected by the virus, with grave impact in tourism, retails, and entertainment sectors.


How is coronavirus effectuating the fashion & beauty industry globally?

The most celebrated fashion shows and weeks of the fashion industry have either been canceled or postponed due to the severe tensions caused by the outbreak of coronavirus globally. The Fashion weeks like- the womenswear shows in New York, London, Milan, and Paris were overturned by the spread of COVID-19.

The Fall 2020 Fashion month season is highly effectuated by the spread of the virus, models and designers are seen posting pictures on their social media with a mask on, spreading awareness among the people and asking them to take proper precautions.

All the employees of the fashion industry are asked to better work from home, shows are being organized in empty theaters to avoid any further spread of the virus. The "cruise" season is most affected and is leading to a huge loss for the fashion industry.

To further know in detail, about how the fashion industry is affected by the virus click here

Moving on to the beauty industry, China fulfills the manufacturing requirements for many luxury beauty brands, but with the outbreak of the virus, there is a major disruption in the supply chain, which is further leading to a decrease in revenues and sales. The factories have to be closed down due to government passed health security reasons, further leading to less production and slow down in the market.

Effects of COVID-19 on the Indian fashion industry

Effects of COVID-19 on the Indian fashion industry

Due to the widespread of coronavirus, India got to set the policy of work from home, all over the country. But the country is finding it hard to adopt it.

Numerous textile factories in China have halted operations owing to the outbreak of coronavirus, adversely affecting exports of fabric, yarn, and many other raw materials from India.

-The outbreak is expected to slow down the cotton yarn exports by 50%, which will further lead to a severe impact on the spinning mills of India.

- The textile units may be hampered in making annual interests and repayments to financial institutions, thereby defaulting their dues.

-This will further impact, the demand from cotton farmers, who were already facing subdued prices.

-India anyway already has a price disadvantage against countries like Vietnam, Pakistan, and Indonesia which have duty free access to China for export of cotton yarn.

-But on the other hand, the spread of viruses unfolds big opportunities for all those industries where China is a major exporter.

-The most celebrated fashion week of the Indian fashion industry- The Lotus Make-up Fashion Week by the EbixCash has to be postponed due to the widespread of the virus in India.

How is coronavirus affecting Indian GDP?

How is coronavirus affecting Indian GDP?

The coronavirus is expected to have adverse economic consequences, According to Economic Times- If China's economy slows to 1.2 percent in January-March quarter, the GDP shock to India from the demand side could be about 0.4- 0.5 percent, the report said. But the rest of the world slows if China slows, particularly many South Asian and European economies. " The Indian economy is relatively insulated, "said Tom, Orlik, chief economist at Bloomberg Economics."

It is being said that the Indian businesses could profit from a fall in crude prices by way of lower fuel and input costs. The prices of overseas transferring would also decline as the yield on the US.

Central banks globally are expected to ease their policy in anticipation of a slowdown in the global economy.

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Is online fashion benefitting from the situation?

With bricks and mortars struggling to maintain sales and many closing down in lieu of the COVID 19 situation, online retail may see a boom.  Restricting of movement and panic amongst the people will pave roads for larger sales through online mediums such as apps, Instagram and other online retail channels.

Amidst the canceling of various exhibitions, many event and exhibition hosts may choose online as a medium to reach out innovatively.

According to a recent market survey by I Knock Fashion at Shahpur Jat - New Delhi, the designers and store owners are stressed about the close to no footfall that has led to a major decline in their sales chart this Spring/ Summer season.

A speculated 7%-15% of increase in online sales is expected to be seen in the year 2020.

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