Israeli fashion industry could collapse from pandemic losses
Shopkeepers warn that if the government does not take serious steps to save them from the coronavirus-induced crisis, the whole national fashion industry could go down.
Shopkeepers across Israel were happy on Nov. 8. After several weeks of waiting, the government eased coronavirus restrictions, enabling them to reopen. Still, the government decided that stores could let in up to only four customers at a time. As a result, people queued for many hours waiting to enter shops.
The first ones to benefit from the easing of restrictions were the big international fashion chains, but the smaller shops were also delighted. Shops selling Israeli-made fashion items were hit hard by the coronavirus-induced crisis. In fact, already before this last crisis, Israel's fashion industry was struggling. Many of the fashion entrepreneurs warn now that the whole industry could drown.
Nitzan Meir is an independent entrepreneur who sells Israeli fashion accessories. He has also been involved for several years with the Movement to Encourage Israeli Fashion. Right now, he is selling hand-made original face masks.
Israeli fashion manufacturers and merchants have engaged in the battle since 2015, when two laws were introduced. "The first one was the cancellation of the value-added tax for online purchases under $75 for all non-Israeli shopping sites. The second legislation scraped up protection taxes on textile products imported from China. These two laws created an absurd situation, where the Israeli government gave preference to Chinese producers over Israeli fashion designers who were working with Palestinian tailor shops," Meir told Al-Monitor.
