We’ve all heard stories about the Coronavirus pandemic, many of us may have even experienced this horrible virus, but you may not realize that luxury retail brands around the world are doing their part to help in the fight against it. LVMH has started producing hand sanitizer, Chanel’s factories are making face masks, and Bulgari is funding research into the virus.
The luxury retail world has been hit hard by the current pandemic with billions of dollars being lost. However, this hasn’t stopped some of the big name brands trying to help out. Millions of dollars have been donated to help individuals, companies, and healthcare professionals who have been impacted by the virus. Keep reading below to find out how the luxury goods industry has helped during the pandemic and what will happen to it when it’s all over:
What Have the Luxury Good Industry Contributed to the Pandemic?
When the coronavirus was first reported in January 2020, LVMH donated over $2.2 million to China. Since then they’ve continued to help fight against the virus by turning all of their perfume factories into sanitizer manufacturers and they’ve sent 40 million face masks to France to help alleviate their shortage of medical supplies.
In April, Kering donated $1 million to healthcare workers in the U.S., so that they could purchase any medical supplies they were short of. They also donated over $4 million dollars to other organizations. These are some of the other brands who’ve helped during the crisis:
- Moncler donated $10.9 million towards the construction of a new hospital in the city of Milan.
- Ralph Lauren has agreed to donate $10 million to COVID-19 charities and funds. They are also making face masks and hospital gowns for medical professionals.
- Capri Holdings own Jimmy Choo, Versace, and Michael Kors. In April, they announced that that would donate roughly $3 million to help fight the virus. This money will be split between the UK, Italy, and the U.S.
- Gucci has started manufacturing face masks and has shipped over 1 million to Italy to help with their shortage of supplies. They are also producing hospital gowns.
- Giorgio Armani has donated over $1.4 million to hospitals in Italy. They have also asked all of their clothes manufacturers in Italy to produce hospital gowns for workers.
- Tiffany & Co. Foundation announced in April that they would donate $250,000 to The New York Community Trust and $750,000 to the WHO.
How Does Making Face Masks and Gowns Help People on the Front Line?
Many fashion designers felt helpless at the start of the pandemic. How could they help fight the virus? What could they do to help take care of the doctors and nurses who were looking after COVID patients on a daily basis? One thing they could do to help was produce face masks.
- Act as a barrier to try and stop the virus from jumping from person to person.
- Stop the virus being able to enter the mouth or nose of a professional therefore reducing their chances of becoming poorly.
All of the doctors and nurses in our hospitals and healthcare settings are on the front line fighting against this deadly virus. Many of them have never experienced anything like this before. If you’d like to help them and you’re interested in starting a rewarding career in nursing then why not consider completing one of these accelerated nursing programs online from Baylor University? Nurses are needed now more than ever, so now might be the perfect time to train.
What Happened in the Luxury Goods Industry During the Pandemic?
The coronavirus pandemic has hit the sales of luxury brands hard. This hasn’t stopped many of these brands from helping in the fight against the virus.
A recent study showed that:
- Most luxury brands rely heavily on customers from China: 70% of all luxury goods purchased are bought by Chinese customers.
- If travel is no longer possible, or people choose to travel less when restrictions are lifted, then some of these luxury brands will face closure.
The report also suggested that:
- Unless a vaccine is found, then travel restrictions are likely to remain in place for a number of years. The Spanish Flu outbreak saw travel restrictions staying in place for nearly three years.
- In order for luxury brands to survive, they would need to adopt price differentials.
- Many consumers will remain cautious when restrictions are lifted with many of them choosing not to go to restaurants, the cinema or shopping malls. This could have a huge impact on the fashion and beauty industry.
- Consumers won’t have as much money free money to spend as they did before the pandemic. Even rich people may not want to spend their money.
Looking to the Future in the Luxury Goods Industry
Although many businesses and luxury goods providers may struggle over the next few months, the good news is that most investors think that the long-term prospects for the luxury goods industry remain good. They believe that the COVID-19 pandemic will cause a short-term loss of business, but they expect it to pick up once life starts getting back to normal again.
Although the demand in China has decreased over the last few months, we aren’t likely to see the same thing happen in the U.S. and Europe thanks to the coronavirus prevention measures that were put in place. Many reports have suggested that we will see a slow recovery in the luxury goods market, but that it will ultimately return in the future.
During the coronavirus pandemic, all businesses (including luxury goods companies) have made their main priority to protect the safety and health of their employees, business partners, and consumers. Many luxury companies have tried to help during the crisis by producing hand sanitizers, face masks, gowns, and by donating money. While all of this has been happening and with so many people relying on this industry to earn a living, industry leaders have been thinking ahead in order to make sure their businesses survive. Although businesses may see a reduction in profits over the next few months, things are likely to get better with time.