Proceedings of the 2022 International Conference on Bigdata Blockchain and Economy Management (ICBBEM 2022)

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The Effect of Covid-19 on the E-commerce Luxury Goods Industry in 2020

Authors
Yifan Wang1, *
1College of LSA, University of Michigan, Ann Arbor, 48109, USA
*Corresponding author. Email: wyf2020cyber@gmail.com
Corresponding Author
Yifan Wang
Available Online 20 December 2022.
DOI
10.2991/978-94-6463-030-5_45How to use a DOI?
Keywords
Covid; E-commerce; Luxury Goods; Kering; Farfetch
Abstract

The Covid-19 pandemic led to an economic depression in 2020 and affected consumer behavior, that resulted two opposite effects on E-commerce markets. This paper studies on the impact of the pandemic on companies in E-commerce luxury goods industry, by analyzing financial statements of selected companies (Kering and Farfetch) and fluctuations of their stock prices. The first analysis computes the deviation of sales growth, EBITDA growth and operating margin in 2020 from historical trend. The second analysis uses multiple linear regression to find the correlation between severity of the pandemic and rate of return to shares of Kering, and Farfetch. F-state is used to test the statistical significance of the correlation. Results indicate that the Covid-19 facilitates the developments and operations of E-commerce luxury goods industry, there is a small impact of the pandemic on stock prices of E-commerce luxury companies. Specifically, on average, stock price of these companies increases, if the number of new Covid deaths domestic or in high-income countries on the current day increases; the growth of new deaths in lower income countries increases stock prices of these companies more than in higher income countries, but with higher magnitude of increases, the volatility is higher.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 International Conference on Bigdata Blockchain and Economy Management (ICBBEM 2022)
Series
Atlantis Highlights in Intelligent Systems
Publication Date
20 December 2022
ISBN
978-94-6463-030-5
ISSN
2589-4919
DOI
10.2991/978-94-6463-030-5_45How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Yifan Wang
PY  - 2022
DA  - 2022/12/20
TI  - The Effect of Covid-19 on the E-commerce Luxury Goods Industry in 2020
BT  - Proceedings of the 2022 International Conference on Bigdata Blockchain and Economy Management (ICBBEM 2022)
PB  - Atlantis Press
SP  - 432
EP  - 439
SN  - 2589-4919
UR  - https://doi.org/10.2991/978-94-6463-030-5_45
DO  - 10.2991/978-94-6463-030-5_45
ID  - Wang2022
ER  -