The impact of COVID-19 on the import and export activities of luxury goods between Europe and China

Abstract

The present thesis work concerns an analysis of the import and export activities of luxury goods between Europe and China and how COVID-19 has impacted these trade relations, showing how the market has changed and continues to change. European luxury companies are the ones that continue to enjoy widespread popularity worldwide and Asian demand for luxury goods has greatly increased to the extent that luxury consumption across the globe is currently driven by Asian customers, especially Chinese. This trend has remained unchanged despite COVID-19 as their demand for more expensive goods has never stopped. Looking at a timeline that goes from the late 70s to the present day, three different contexts are analyzed: firstly, a general overview is essential as COVID-19 clearly changed the trade relations between countries in a number of ways, including, business closures, decreases in daily consumption by locals, stronger customs quarantines and growing logistics costs. Governments have announced closure of borders, enterprises and factories in an effort to stop it, and the global supply chain has encountered significant difficulties. Secondly, if Chinese regulations are functional and have helped to develop and improve the import and export relationship between China and Europe. And finally, how the demand and supply of the luxury market was impacted by COVID-19. This issue has been deepened with an empirical research concerning a sector analysis of fourteen companies exporting in Asia. The selected companies are engaged in the sales of three different business sectors, namely Auto Manufactures, Apparel & Accessories Manufacturing and Beverage Wineries & Distilleries.