How much is the Coronavirus factor weighing on companies and consumption? We see four different sectors, that of multinationals, that of the consumption, that of SMEs and finally the Fairs, in relation to the first even if partial final balances of the year. For the multinationals, according to the data arriving in the newsrooms, the blow seems to be very heavy. Thierry de la Tour d'Artaise, CEO and President of the Groupe Seb, world No. 1 for small appliances (Tefal, Krups, Calor, Moulinex, Lagostina, WMF, turnover of 7,53 billion euros), cautiously expressed an estimate: only in first quarter of the year and only for the Supor branch in China (where it has seven factories, one of which in Vuhan) the drop in sales is 250 million euro.
A big problem for multinationals. Because, having sometimes excessively practiced relocation to Asia and other continents, they now find themselves without products. And without components. All supplies that the Coronavirus is blocking. SEB has about 42 production sites around the world (very few in France and only for very expensive products) according to a strategy that has paid off but which could prove simply disastrous for the future. Indeed, the pandemic in Asia has only just begun. And it is silently growing due to the lack of welfare; swabs, treatments and hospitalizations are unattainable by the vast majority of the population (apart from China).
Recover the hi-tech market
As for consumption, GFK has provided us with the results of purchases of consumer electronics and household appliances in Italy in the period February 24-March 1, the second week affected by the spread of Covid-19, which recorded a content decrease in value of 1,9 percent compared to the average of the previous four weeks. This is a very different result from the collapse of the previous week (February 17-23) when GFK alarmed all operators by announcing -8,4 percent. And beware, compared to the same period of 2019, sales are even at +8,8 percent, up sharply for all sectors with the exception of tablets and razors, which have a decidedly little influence on total sales. And after all, 58 percent of consumers interviewed by GFK declare that "the news circulating about the seriousness of the Coronavirus is a bit exaggerated". Above all, purchasing methods have changed, buying both electronic products and food more online.
What about SMEs?
Small and medium-sized companies are reacting in very different ways but all aware that Made in Italy exports will be penalized by the effects of the Coronavirus. In the furniture sector they are preparing to participate in the Salone del Mobile with budgets weighed down by the cancellation of the programs for the April edition and by the very complicated and expensive preparations for the new date. Second Simest, however, and according to what he reports Business International, Italian exports will maintain the growth trend, albeit clearly lower than the previous forecasts of a growth of 2,8 percent. A reassuring message comes from one of the highly successful symbols of Italian luxury: the brummel who even sent a press release to reassure customers, suppliers and employees.
"Considering the emergency situation of the Coronavirus which is a cause for concern all over the world, we would like to inform you that our work continues without interruption. Our opinion is that i mass media, especially in our country, generate many alarms regarding the real situation in Italy. Here, in our city, everything goes on as usual, there are no problems and the companies are working at full capacity. We would like to assure you that our production and orders are carried out according to the planned schedule without any delay in delivery due to emergency”.
Many companies in the furniture sector have been exhibiting for decades in the main American fairs and in particular they should have participated in the Chicago Show in March which is traditionally a formidable key to opening up the North American home market. The damages for the expenses incurred and the missed contacts and... contracts range, according to what some exhibitors have declared, from a minimum of 15 dollars to a maximum of 50. And since the fair was cancelled, it should be the organizers who provide some form of compensation and compensation for the exhibitors.
