Chinanews.com Client, Beijing, March 26 (Zuo Yukun) The new crown pneumonia epidemic is spreading globally, and luxury brands "home base" Italy, France and other countries have not been spared. They have always used "Made in Paris", The industry giants that set the benchmark in quality in Italy are in an unprecedented dilemma.
Consumption plummeted and production ceased. In this spring, the cold winter in the luxury goods industry still seems to be over.
Under the epidemic, large-scale shopping malls in Toronto, Canada were deserted. Photo by Yu Ruidong of China News Agency
Dim luxury: closed shop, big show brakes
Under the epidemic, Bao couldn't cure everything.
In order to prevent the epidemic from spreading rapidly, many luxury brands have begun to enter the stage of store suspension. Beginning in the early morning of March 15, all "non-essential" public places will be closed in France, and all shopping malls and luxury stores will be closed, including Galeries Lafayette and Parisian Spring.
Macy's Inc in the US, Hudson's bay in Canada, and Selfridges in the UK have also announced that all of its stores have been suspended.
At the same time, the impact of the epidemic has spilled over into the retail sector of the luxury goods industry, hitting the supply side.
On March 18 local time, French luxury brand CHANEL issued a statement saying that its production bases in France, Switzerland and Italy will be closed in the next two weeks.
Prior to this, Hermès had just announced the closure of 41 production bases in France until March 30, mainly including tannery, clothing factory, leather factory and porcelain factory; Italian luxury brand Gucci has also closed Its factories in Tuscany and Marche, Italy.
In addition to the difficulty in production and operation, major fashion shows also stepped on the brakes.
Chanel recently announced the cancellation of the holiday series show in Carpi, Italy on May 7th. This is the third time the brand has adjusted its fashion release schedule due to the epidemic this year; Dior has postponed the original scheduled for May 9th in Italy. Early spring vacation show; Hermes also canceled the 2021 early spring vacation show originally scheduled for April 28 in London. Also delaying the holiday series show are luxury brands such as Gucci, Prada and Giorgio Armani.
"We have never seen such a scene in our lifetime," said Luca Solca, head of luxury research at BNP Paribas. "It is clear that the first half of this year will be the worst first half of the luxury industry's history, and much worse. "
Epidemic storm At present, the luxury goods industry with its exuberant past also has to seek self-help.
Cross-border anti-epidemic: masks and disinfectants are more luxurious
When China responded to the epidemic, many companies turned to medical supplies, and the luxury industry also has such cases.
On March 15th, LV parent company and global luxury giant LVMH Group announced that it will urgently rebuild three perfume and cosmetics factories. The production lines of its brands Christian Dior, Guerlain and Givenchy will begin to produce hand sanitizers free of charge. French health agency and European hospital system.
On the 19th, the first batch of hand sanitizer was delivered to a French hospital. In order to produce quickly, LVMH directly used the packaging of Dior's personal care products. The pressing head of each bottle of hand sanitizer was also engraved with Dior's iconic "CD" two letters.
According to Reuters news on the 21st, LVMH also said that they ordered 40 million masks from a Chinese mask supplier to help France cope with the new crown pneumonia epidemic.
According to media reports, once the Italian and French authorities have obtained permission, Gucci and Prada's factories will start producing masks and protective clothing; Kering's other two brands, Balenciaga and Saint Laurent (YSL) also said that once the government approves With its manufacturing processes and materials, the factory will invest in manufacturing medical protective clothing to supply the high demand of French hospitals during the epidemic.
On March 17, local time, there were few vehicles on the Champs-Elysées in Paris. Photo by Li Yang, China News Agency
For these luxury brands, whether it is to change production or purchase, it is to give people charcoal in the snow, and it is even helping themselves. In the special context of the epidemic, people's emphasis on consumption will change. At this time, a company that is conscious and capable of meeting people's needs can show its social responsibility to the greatest extent, and it is easier to win potential users in the future.
As some netizens said: "At this moment, the world's largest luxury brand company understands that masks are more luxurious than luxury goods at a critical time."
Self-rescue attempt: retail and show are all "on the cloud"
Cloud office, cloud class, cloud entertainment, cloud diagnosis and treatment ... An epidemic has made "enterprise cloud" the most popular development model. But for luxury brands that focus on offline experience, this transformation is a little bit difficult.
Luxury brands with "high-end customization" as their selling point have a large percentage of abstract value. The high price itself includes the added value of store design, services, etc. that depend on field acquisition. Digitalization will greatly weaken consumers' part of the experience, resulting in incomplete brand value.
But the epidemic is a catalyst, pushing luxury brands that are still hesitating and testing the water to compromise online.
During the epidemic, top-tier brands such as Cartier, KENZO, Prada, Alexander Wang, Giorgio Armani, and Miu Miu were intensively settled in the sky Cat; JD.com ushered in Delvaux in early March, and it has also become the exclusive online e-commerce platform for this European old-school luxury brand in China.
As some insiders have said: "This may be an opportunity for the industry to reshuffle. The importance of the online market has never been so clear." Under the epidemic, the retail industry is also brewing changes and opportunities.
Also taking advantage of the online show was canceled offline big show. You know, for the luxury industry, these "shows" are more than just a show. They are the key to influencing sales in the next season. "Shangyun" is tantamount to opening up a "second show" for luxury brands.
Shanghai Fashion Week, known as the "World's Fifth Largest Fashion Week", joined hands with Tmall to create the world's first "Cloud Fashion Week". During the week of March 24-30, 150 online releases will be assembled Debut.
On February 24, Dior's autumn and winter ready-to-wear show was launched in an interactive way on Weibo's online topic page, "Cloud Live." This fashion show with no buyers, no fashion bloggers, and no media at the scene gained great results. Exposure; Giorgio Armani's Fall / Winter 2020 Milan Fashion Show also became the "Cloud Show Field". There were no show guests at the scene, and the whole process was broadcast live through the Internet.
Is retaliatory consumption of luxury goods reliable?
A report by Bain & Company shows that the outbreak could cost the entire luxury goods industry 30 to 40 billion euros, and the total profit of the sales industry fell by 15%, the lowest level since 2015. The 30 billion euros happened to be the full-year sales of the mainland luxury market in 2019, accounting for 35% of global luxury consumption in that year.
The absence of the main consumer has naturally made life difficult for the luxury goods industry. As the epidemic in China eases, revitalizing the economy is also on the agenda. The luxury goods industry is also looking forward to people's "retaliatory consumption" of luxury goods, just like "ordering 77 cups of milk tea at a time and buying 50 lipsticks in one breath".
Well-known research institute Nielsen recently released a report that 67% of retailers said they would vigorously expand online channels. The report believes that the new crown pneumonia epidemic is likely to usher in a wave of consumer rebound, and the retail industry, which has been tested by the epidemic, is also brewing changes and opportunities.
Yorkdale, a large mall in Toronto, Canada, is deserted, and most of the shops in the mall have been closed. Photo by Yu Ruidong of China News Agency
But can things really go so smoothly?
On March 21, Rhodes Communication Group and Precision Market Research Center jointly released the survey results of luxury goods consumption in mainland China during the epidemic period. Compared with the survey data from three months ago, jewelry, bags, beauty cosmetics and automobiles The proportion of respondents who plan to increase spending each year has dropped significantly, among which jewelry has dropped from 48% to 35%, and bags from 43% to 29%.
When the epidemic makes future income uncertain, the first thing people choose to cut off is luxury consumption.
Gao Ming, senior vice president of Rhodes Communications Group and managing director of Greater China ’s luxury business, said that the cumulative release of consumer demand for shopping after the epidemic has ended will indeed exist for some specific luxury goods categories, but the survey results Show that this will not become mainstream. The increase in the overall proportion of people expected to reduce spending is a greater challenge for brands.
How to get rid of the shadow of the epidemic? It seems that even the luxury industry, which seems to be "noble", still faces the same or even more difficult test questions as other industries. (Finish)