Reacting to the Coronavirus: How to Update Your 2020 Plan

According to the State Administration of Foreign Exchange, Chinese nationals spent more than $127.5 billion on outbound travel in 2019 — more than any other country in the world. Now, with mainland China hit by the novel coronavirus, or COVID-19, countries all over are closing their borders to the Chinese in an effort to contain its spread. With the door to Chinese travelers firmly shut at the moment, luxury marketers need to look at boosting domestic consumption and relying less on Chinese travelers spending overseas. That said, retail in China is also slowing down given the current situation. With fears of contagion still rampant in Chinese cities, locals are reluctant to leave the confines of their homes and minimize their time spent out in the open. Naturally, luxury goods consumption will continue to wane over this period. The effects of this health crisis will last for some time, and brands should start looking ahead and planning for the rest of the year. Here are some of the things marketers should consider: Postponing, Not Canceling In light of the current situation, brands might be inclined to be more conservative in their marketing spend, moving and reallocating budgets for campaigns in China. But such a move

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