This SlideShare shows the luxury groups and brands that have been the first to respond to Covid19, gives some initial future outlooks for luxury and fashion, and explains calls for action for brands. The presentation also looks at the key actions and measures that GAFAM (Google Apple Facebook Amazon Microsoft) has taken in response to Covid19 in comparison to the French luxury GAFAM named,“Kholc” Kering Hermès L'Oréal LVMH CHANEL

1. Luxury Brands
responding to
Covid-19

2. Luxury industry amidst Covid-19
How the industry has been impacted during this world health
crisis
From the earliest stages of the pandemic, the luxury industry has been
highly attuned to the spread of the coronavirus and its massive
implications, especially steep declines in revenue. Luxury brand owners
felt the first rumblings of the storm when Covid-19 spread through China,
the country whose citizens accounted for 90% of the global luxury market
growth in 2019
More than 40%
of global luxury good
production happens in
Italy2
All Italian factories
have been temporarily
shut down
25%-30% is the
estimated decline in sales
for the year 20201
1
Bain & Company: Luxury after Covid-19: Changed for (the) Good?
2 Mckinsey & company: A perspective for the luxury-goods industry
during—and after—coronavirus

3. The luxury industry has been rallying
to fight Covid-19
As brands are multiplying their actions in response to the
crisis
Making donations
Companies have started to
donate money to fund research
and to support hospitals
Creating foundations
To supply ample funding for the
fight against Covid-19
Manufacturing health
equipment
Brands are pivoting their
manufacturing plants to
produce facial masks, suits,
glasses and hand sanitizers
Creating donation centers
Some are creating donation
centers for equipment in their
offices / plants as well as
helping to build new temporary
hospitals
Providing employee
assistance
Companies are providing
employee assistance by
maintaining salaries and
healthcare coverage

4. Covid-19 is testing every facet of our
global and modern society
Luxury brands have been among the most responsive
companies
Luxury companies’ first priority has been to protect the health and safety of
their employees, consumers, and business partners. They have pivoted to
address urgent public-health needs such as clothing and perfume factories
mobilizing its resources to produce face masks and hand sanitizer. Many
luxury groups have made sizeable monetary donations to hospitals and
other nonprofit organizations
Aids are coming in many forms from Doctors Without Borders to No Kid Hungry. Recently,
Burberry joined the efforts by shifting the brand's Yorkshire production facilities to make
masks and gowns
40 million FFP2
disposable masks,
respirators and surgical
masks have been ordered and
distributed by LVMH
Luxury brand, Moncler, has
donated €10 million to
build 400intensive care units
for a new hospital in Milan

5. LVMH has been most responsive
Setting the pace and leading as an example for other groups
to respond
Apart from the fashion conglomerate’s $2.2 million donation to the Chinese
Red Cross in February, LVMH has quickly used its perfume and cosmetics
factories for the production of hand sanitizers
1 2
Financial Times: Inside the factory: how LVMH met France’s call for
hand sanitiser in 72 hours
LVMH announced it will supply French authorities with at least 40 million masks. The
luxury conglomerate has tapped into its global distribution network to secure and pay for a
first order from a Chinese industrial supplier to deliver of 10 million masks to France
12 tons of hand
sanitizer was donated by
LVMH in just one week to
over 39 hospitals across
France to help fight the
Covid-19 1
72 hours
within which LVMH
prepped its factories to
produce high quality
hand sanitizers 2

6. Kering is equally contributing to the
fight against Covid-19
With monetary donations and providing manufacturing
facilities with safety equipment
Due to the global health crisis and importance of Italy for the Kering
group, the Kering brands have come together to support the efforts
fighting against Covid-19. Kering made a 2 million euro donation made
to four major Italian foundation hospitals in Lombardy, Veneto, Tuscany
and Lazio
1 2 Kering Official Website
1.1 million
masks and
55,000 medical
overalls were donated by
Gucci in Italy 1
3 million
masks will be provided to
French healthcare
system by Kering 2

7. L’Oréal has put in place a sweeping
solidarity program in Europe
Contributing in every possible way to the collective effort to
fight the virus
The group announced a plan that involves distributing vast quantities of
hand sanitizers, helping suppliers of small and medium-sized
companies, as well as supporting organizations that help the
disadvantaged. L’Oréal Group’s comprehensive support program is built
on six key pillars including: solidarity with health authorities, healthcare
and pharmacy staff, food distribution stakeholders, VSE/SMEs across
distribution networks, the most exposed suppliers and the most needy
1
Cosmetic Design Europe : L'Oréal launches European solidarity plan
amid Covid-19 outbreak
2 Thv11: L'Oréal making 550 gallons of hand sanitizer a week for
Arkansas healthcare workers
550 gallons of hand
sanitizer per week were
produced by L’Oreal’s North
Little Rock factory in the U.S.
free of charge 2
EUR€ 1 million
donation was made to
nonprofit organizations
to help them battle
against Covid-191

8. Hermès is united and responsible
The brand is equally contributing to the fight against the
pandemic
Hermès has pledged its support to the French government in its
efforts to cope with the impact of the current unprecedented public
health crisis. It announced that it will maintain the salary of its 15,500
employees worldwide without having to resort to any additional
government support
1 2
Hermes Official Website
€20 million
donation was made by
Hermès to public
hospitals in the Paris
region 1
30 tons of hand
sanitizer will be produced
and distributed for free
along with 31,000
masks 2
Hermès amended the proposed ordinary dividend from €5 to €4.55. The board
members have also decided to forego their salary increase during this time of crisis

9. Chanel assists communities around the
world
With highly localized strategies
With highly localized strategies in France, Italy, the U.K., China and South
Korea, Chanel has made donations to nonprofit organizations for medical
relief and health care support, particularly for frontline workers as well as
organizations that support the most vulnerable people in the hardest-hit
communities. Chanel’s partner manufacturers and sewing specialists in Paris
are producing hospital gowns for health workers and face masks for the labor
force. Chanel will maintain the salary of its 8,500 employees worldwide for a
period of 40 days
1 2 CNA Luxury Chanel to produce face masks, pledges almost S$2
million to COVID-19 fund
In France, 50,000
face masks were
delivered to a number of
hospitals, firefighters,
police and the
gendarmerie2
€1.2 million
donation was made to the
emergency fund created
by Fondation de l’AP-HP
(the public hospital
system of Paris), the
Fondation Georges
Pompidou and the
SAMU91

10. Luxury automotive industry is led by
the exemplary action ofTesla
As it uses its resources to create medical supplies and
ventilators
1 2
CNET: Tesla CEO Elon Musk donates 1,255 ventilators to support
COVID-19 fight
Tesla’s CEO, Elon Musk, revealed that the company will offer FDA-approved
ventilators to hospitals worldwide within the Tesla delivery regions
50,000 N95
masks were distributed
by Tesla in Seattle 1
1255 FDA approved
ventilators were
purchased and
distributed by Tesla in the
United States of America2
Lamborghini stands united with Italy converting various departments of its factory in
Bologna to produce 1,000 surgical masks and 200 protective plexiglass shields a day

11. Analyzing actions
and measures by
independent fashion
houses

12. Every business is making its own
contribution
Smaller fashion houses are pledging their sales to charities
NYC-based fashion brand, Self-Portrait, has
pledged 10% of all online sales for the next 30 days
to the National Emergencies Trust
Italian footwear brand, AGL, is donating 30% of its
online sales to aid the medical staff in the region of
Marche, where the company has its headquarters
and factory
The brand decided to convert its New York offices
into a center for the donation and redistribution of
equipment essential to the protection of health
personnel and the population, such as masks and
latex gloves. Furthermore, Pyer Moss announced
that it will set aside $5,000 to help provide these
essential supplies, and $50,000 to support small
creative businesses run by women or minorities1
1 Refinery29: All The Fashion Brands Helping To Combat COVID-19

13. Independent fashion labels are uniting
in the battle against Covid-19
Every ounce of support counts; small independent labels are
getting involved in the fight against the coronavirus
The label is donating 20% of the louloustudio.fr sales
to the World Health Organization
The label will deliver 12,000 masks in the coming
weeks to the Hungarian health authorities
To support hospital staff, the brand is donating 20% of
the profits from its website to the Assistance Publique
des Hôpitaux de Paris (APHP)
Madrid-based designer, Alejandra Alonso Rojas, is donating 30% of the proceeds from her
brand's website to two charitable organizations: God’s Love We Delivery and No Kid
Hungry. Both organizations benefit children and families who are currently unable to gain
access to food due to the Covid-19 outbreak

14. Analyzing actions
and measures by
“Fast Fashion
Brands”

15. Inditex is heavily helping Spain
The clothing giant has delivered 457 million euros worth of
sanitary medical gear to Spanish hospitals
Zara’s parent company, Inditex, has been doing some heavy lifting
on behalf of the Spanish government— for free — in addition to
donating tens of millions of euros to fight Covid-19. The company has
closed 3,785 stores across 39 different markets. It also reported a
sales loss of 24% in the month of March. However, it has reopened
most of its stores in China since the slowdown of the virus
$335
million
worth of inventory has
been written off by
Inditex since the
outbreak 1
300,000
masks will be donated by
Inditex to healthcare
workers in Spain 2
1 2
BusinessInsider: Zara's owner will donate face masks and hospital
gowns for coronavirus patients and healthcare workers amid the shortage
caused by the pandemic

16. H&M is helping communities affected
by Covid-19
By donating essential clothing and manufacturing protective
gear
Starting on March 22nd, fast fashion giant, H&M, began manufacturing large
quantities of personal protective gear that will be donated to hospitals and
health care workers around the world. H&M USA is partnering with Givz so
that for every $60 spent on hm.com/us, H&M USA will donate $10 to
charities providing support and relief to those on the front line of the
pandemic. Ultimately, this donation could total up to $150,000
$5 million
donation was made to
the World Health
Organization to help
prevent the spread of
the pandemic 2
70,000
of H&M products
including bedding,
sheets and adult and
children’s clothes will go
to organizations like
Children’s Defense Fund,
The Los Angeles LGBT
Center, and
GLAM4GOOD 1
1 2
H&M Official Website

17. Mango has donated medical overalls
and masks to healthcare workers
And has slowly begun to reopen its European store fronts.
The Spanish chain which has stores in more than 100 countries
worldwide, is planning to continue making donations in the coming days
and is working with Spain’s Ministry of Health to coordinate distribution.
The brand has reopened 135 stores in Germany, Austria and the
Netherlands with more stores planning to reopen across Eastern and
Central Europe.
:1
Mango Offical Instagram
2 The Industry.Fashion: Mango donates two million masks to Spanish
hospitals in COVID-19 fight
13,000
masks and medical
overalls have been
produced for healthcare
workers 1
2 million
Masks were donated by
Mango to the Spanish
healthcare system 2

18. Analyzing actions
and measures by
“GAFAM”

19. GAFAM gets creative with its
contribution to the Covid-19 battle
The powerful tech giants’ donation efforts are too small
compared to their size
Digital giants and billionaires are investing too little in the fight against
the coronavirus. According to data collected by a tax specialist, Google,
Apple, Facebook, Amazon and Microsoft are only providing between
0.01-0.05% of their wealth to fight the current crisis. Despite the crisis, it
is business as usual for the Big Tech companies as they are trying to
recover their market value
$550
million
total amount spent by
GAFAM for the cause 2
:1
CNBC: Tech’s big five lost $1.3 trillion in value since market peak one
month ago
2 L’actualite: Google, Apple, Facebook, Amazon, Microsoft: where are you?
$1.3 trillion
total market value lost by
GAFAM since February
2019 1

20. Google responds to Covid-19
By pledging in donations, ad credits and technology
Alphabet, Google’s parent company, has had a multifaceted yet largely
product-focused response to the coronavirus over the last several weeks.
Google’s latest initiative commits $800 million to aid Covid-19 relief efforts
through ad grants, donations, and credits as well as in the form of donations
to manufacturers. It donated $250 million in ad grants to the World Health
Organization and other government agencies that provide information on
how to prevent the coronavirus
$200
million
investment in a fund to
support NGOs and
financial institutions
around the world that
provide small businesses
with access to capital2
2-3 million face
masks will be provided by
Google to the CDC foundation
1
1
Business insider: Google pledges to donate $800 and 3 million face
masks to combat the coronavirus
2 Bussiness today: Coronavirus Google CEO donates Rs. 5 crore to
Give India

21. Amazon kicked off its donations in the
USA
And is teaming up with Google to provide virus-tracking
services for deconfinement
Led by CEO, Jeff Bezos, Amazon has been working behind the
scenes during the pandemic, including holding talks with the World
Health Organization, providing IT support and offering to deliver
Covid-19 test kits in the UK. It made a $1 million donation to the
Washington, DC community foundation to support the population
vulnerable to the Covid-19 crisis. It has teamed up with Google to
build a Bluetooth-based Covid-19 contact tracing platform which will
alert users of close exposure to the coronavirus.
$5 million
small business relief fund
to help small businesses
in the Seattle-area 1
$25 million
relief fund for its network
of independent Amazon
Flex drivers 2
1 2
Amazon Official Blog
3 Vox: Why Jeff Bezos’s $100 million donation wont satisfy his critics

22. Facebook launches the global
community help feature
With more donations from Mark Zuckerberg on its way
Facebook CEO, Mark Zuckerberg, pledged to donate and provide
protective gear for healthcare workers. It also launched a community
help feature that allows users to help those impacted by the
coronavirus as well as donate to nonprofit fundraisers
$20 million
donated by Facebook to
United Nations
Foundations and World
Health Organization 1
720,000
masks donated by
Facebook for the
healthcare workers 2
1
Techcrunch: Facebook commits $20 million to UNF, WHO and CDC
to tackle Covid-19
2 CNET: Facebook donates 720,000 masks to healthcare workers
fighting coronavirus

23. Apple is committed to help the world
bounce back from the pandemic
Tim Cook promises donations in the form of masks and
money in efforts to fight the outbreak
Apple decided to close all of its stores worldwide on March 14th
except those in Greater China. It consistently publishes updates on
its website and social media regarding its efforts to stop the
pandemic. Apple also created a “screening” app and website in
partnership with the CDC and the White House providing useful
information on how to act in case of any symptoms. It has reported
over $15 million in donations and has announced that it is matching
employee donations two-to-one to support Covid-19 response
efforts
10 million
masks will be provided by
Apple to healthcare
professionals in the
United States and Europe
1
1 Techcrunch: Apple will donate 10m face masks to healthcare workers
2
Mashable: Apple Will Donate A Part of Red iPhone SE Sale Proceeds To
COVID-19 Relief
100%of eligible
proceeds from
(PRODUCT) RED
purchases will go to the
Global Fund's COVID-19
Response 2

24. Microsoft is working hard to protect
its employees and community
While teaming up with institutions to provide needed
research and technology to stop Covid-19
The company is working to do its best to ensure the safety of its
employees, protecting the health and well-being of the communities in
which it operates, and providing technology, tips and resources to
customers to help them do their best while working remote. The company
has lent its chatbot technology as a framework to the Centers for Disease
Control and Prevention (CDC) for a Covid-19 chatbot assessment tool of its
own. It is partnering with colleges and institutions around the world to
open a research data set called the Covid-19 Open Research Data Set that
has over 29,000 scholarly articles about the virus
240,000 surgical
masks
35,000 hand
sanitizers and
30,000lunch
boxes for families affected
by the crisis 2
$1 million
donation was made to
nonprofit organizations to
help the battle against
Covid-191
1
Microsoft Official Blog
2 Windows Central: Microsoft will donate 240,000 masks and 30,000
box lunches to help people during the coronavirus outbreak

25. Future Outlooks

26. Trends set to accelerate
In all crises, there are calls for “everything to change”
Wholesale Darwinism
Wholesalers are likely to
adopt aggressive
commercial and discount
policies
From global traveller to
local shopper
With hesitance to travel,
brands will need to reach out
to consumers in their local
market
Experiential luxury
It will slow down in the
short term as consumers
temporarily revert to
buying goods over
experience
Hyperpolarization in
performance
The gap between brands will
further widen depending on
its financial health prior to
the crisis and the resiliency
of its operating model
Another chance for
“rare gems”
Post-crisis acquisitions
that were once unlikely
can become viable
1
Mckinsey: A perspective for the luxury goods industry during and
after coronavirus

27. Branding amidst the crisis
How decisions are made now have a direct impact on a
brand’s future perception
Branding is not something you turn on and off, like a light switch. Branding
reflects the sum of every organizational action, set against the backdrop of
culture, all of which reveals the true character of a company or a brand. When
the Covid-19 crisis eventually ends, consumers won’t begin searching for
brands they hope they can trust. They will choose brands they already believe
they can trust based on previously observed actions. They won’t seek out new
communities of affiliation but turn to those in which they already have faith and
already know align with their social, political and spiritual world views
LVMH
has assured its
consumers that its
Maison's will maintain a
positive brand image
throughout this crisis
Adidas
has faced tremendous
backlash with its decision
to forego rent payments
amidst the virus, which
the brand later
apologized for

28. $2.7 million
in sales made by Hermès
flagship boutique in
China on its first day of
reopening 1
20-25%
decrease in Chinese
shoppers’ willingness to
spend on categories such
as travel, fine dining and
premium leather goods 2
The market won’t change drastically, but consumers on the other hand
may have a drastic change in their shopping mentality and methods.
Consumers will either want to spend as they did in the 1920s, or they will
shop more consciously. There might even be a drastic change anticipated
in travel buying as this virus has evoked local pride
An uncertain road to recovery
With a possibility of drastic changes in consumer buying
patterns
1
WWD: Hermès Hauled in $2.7 Million in One China Store on Saturday2
Business of Fashion: Revenge Buying' in China Won’t Save Luxury

29. Rise in a post-
aspirational mind-set
People will tend to spend
more and save less
Keep a sharp eye on how customer
behavior and sentiment is evolving
Understand and anticipate shifts in consumer behaviors
China becomes a luxury
stronghold again
In China, shops are already
open and running
Accelerated digital
shopping
During the pandemic, the
population has shifted to
online shopping, a habit that
will stick
Heightened
environmental and
social consciousness
Post-crisis, people will opt
for eco-friendly brands
Need to appeal local
pride
Especially within the
European region, people will
tend to buy more locally
manufactured goods
1
Bain & CompanyHow Covid-19 Is Reshaping the Luxury Market
Demand for more
accessible price points
People will look for products
within the affordable luxury
segment

30. A shift in Chinese consumers
How luxury consumer preferences in China are shifting after
Covid-19
1
Jing Daily: How Luxury Consumer Preferences in China Are Shifting
After COVID-19
Life as a new luxury
The population shift from Tier 1 cities to smaller towns will continue
in the post-pandemic time, opening up new possibilities for brands
to expand their businesses
Health as a new luxury
The demand for healthy products were at an all time high during the
Covid-19 crisis in China. Consumers want absolute clarity that what
they are buying is healthy, signalling that health and well-being will
be a significant area of opportunity for luxury brands and services in
the future
Seamless retail experience
As digital services become more embedded in our everyday lives,
luxury brands will have to create more online-to-offline experience
strategies, closely connect consumers to real-time events, and offer
seamless inspiration-to-purchase processes

31. Calls for Action

32. Re-examine and
refresh your strategy
Think and act now,
brands do have a
“rendez-vous” not to be
missed
Keep an eye on
consumer behavior
Understand and
anticipate shifts in
consumer behavior
during and after the crisis
Calls for action
Four areas to ensure brands are well positioned after Covid-
19
Understand the new
economy
In the post Covid-19 era,
there will be numerous
trends which are set to
accelerate and bring in
new growth opportunities
Plan to develop
Many businesses will
need to develop new
products, services,
markets and business
models in order to
survive post-crisis

33. Headquarters:
25, Rue du Bois de Boulogne
92200 Neuilly-Sur-Seine, France
Office space at Kwerk:
Tour First – La Défense
--------------------------
Office: +33 1 46 37 70 85
Cell: +33 6 82 82 28 83
E-mail: yves@lighthouse.fr
To find out more about
the future of luxury:
www.luxedemain.fr
Lighthouse is a Strategy & Branding
Consultancy born to reveal and leverage
the potential of daring companies for
long-term growth.
We assemble international teams of
action-driven people to reveal and
leverage the assets of our clients,
building brand ecosystems for the future.
We are highly recognized and worked
with prestigious global companies
such as Kenzo (LVMH), Bally, Corneliani
(Investcorp), onefinestay (AccorHotels),
Nihiwatu (Burch Creative Capital)
and Nikki Beach Worldwide, etc.