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 Hermes L'Oreal 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 rallied to fight
Covid-19
As brands multiplied their actions in response to the crisis
Making donations
Companies donated money to
fund research and to support
hospitals
Creating foundations
To supply ample funding for the
fight against Covid-19
Manufacturing health
equipment
Brands pivoted their
manufacturing plants to produce
facial masks, suits, glasses and
hand sanitizers
Creating donation centers
Some created donation centers
for equipment in their offices /
plants and helped to build new
temporary hospitals
Providing employee
assistance
Companies provided employee
assistance by maintaining
salaries and healthcare coverage

4. Covid-19 has tested every facet of
our global and modern society
Luxury brands were among the most responsive companies
Luxury companies’ first priority was 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 came in many forms from Doctors Without Borders to No Kid Hungry. 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 were ordered and
distributed by LVMH
Luxury brand, Moncler, donated
€10 million to build 400
intensive care units for a new
hospital in Milan

5. LVMH was the 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 quickly used its perfume and cosmetics
factories for the production of hand sanitizer
1 2 Financial Times: Inside the factory: how LVMH met France’s call for
hand sanitiser in 72 hours
LVMH supplied French authorities with at least 40 million masks. The luxury conglomerate
tapped into its global distribution network to secure and pay for its 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 equally contributed 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 came together to support the efforts fighting
against Covid-19. Kering made a 2 million euro donation to four major
Italian foundation hospitals in Lombardy, Veneto, Tuscany and Lazio
1 2Kering Official Website
1.1 million
masks and 55,000
medical overalls were
donated by Gucci to Italy 1
3 million
masks were provided to
the French healthcare
system by Kering 2

7. L’Oréal put in place a sweeping
solidarity program in Europe
Contributing in every possible way to the collective effort to fight
the virus
The group’s plan included distributing vast quantities of hand sanitizer,
helping suppliers of small and medium-sized companies, as well as
supporting organizations that help the disadvantaged. L’Oréal Group’s
comprehensive support program was 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 was united and responsible
The brand equally contributed to the fight against the pandemic
Hermès pledged its support to the French government in its efforts to
cope with the impact of the unprecedented public health crisis. It
maintained 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 were produced and
distributed for free along with
31,000masks 2
Hermès amended the proposed ordinary dividend from €5 to €4.55. The board members
decided to forego their salary increase during the time of crisis

9. Chanel assisted communities
around the world
With highly localized strategies
With highly localized strategies in France, Italy, the U.K., China and South
Korea, Chanel 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 produced hospital gowns
for health workers and face masks for the labor force. Chanel maintained 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 was led
by the exemplary action of Tesla
As it used 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 produce and donate
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 stood united with Italy converting various departments of its factory in
Bologna by producing 1,000 surgical masks and 200 protective plexiglass shields a day

11. Analyzing actions
and measures by
independent
fashion houses

12. Every business made its own
contribution
Smaller fashion houses pledged their sales to charities
NYC-based fashion brand, Self-Portrait, pledged
10% of all online sales for 30 days at the end of
March to the National Emergencies Trust
Italian footwear brand, AGL, donated 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 converted 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 set aside
$5,000 which provided these essential supplies, and
$50,000 which supported small creative businesses
run by women or minorities1
1 Refinery29: All The Fashion Brands Helping To Combat COVID-19

13. Independent fashion labels united
in the battle against Covid-19
Every ounce of support counts; small independent labels got
involved in the fight against the coronavirus
The label donated 20% of the louloustudio.fr sales to
the World Health Organization
The label delivered 12,000 masks in the coming weeks
to the Hungarian health authorities
To support hospital staff, the brand donated 20% of the
profits from its website to the Assistance Publique des
Hôpitaux de Paris (APHP)
Madrid-based designer, Alejandra Alonso Rojas, donated 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 heavily helped Spain
The clothing giant delivered 457 million euros worth of sanitary
medical gear to Spanish hospitals
Zara’s parent company, Inditex, did 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 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 was
written off by Inditex since
the outbreak 1
300,000
masks were 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 helped 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 which were donated to hospitals and health
care workers around the world. H&M USA partnered 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 went
to organizations like
Children’s Defense Fund,
The Los Angeles LGBT
Center, and GLAM4GOOD
1
1 2 H&M Official Website

17. Mango donated medical overalls
and masks to healthcare workers
And has reopened its store fronts all over the globe
The Spanish chain which has stores in more than 100 countries
worldwide, made donations and worked with Spain’s Ministry of Health to
coordinate distribution. The brand has reopened over 1,000 stores
worldwide and is planning to reopen the remaining 344 in the first week of
June
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 were 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 got creative with its
contribution to the Covid-19 battle
The powerful tech giants donated on all fronts
Digital giants and billionaires, Google, Apple, Facebook, Amazon and
Microsoft, made big moves to help society fight against the pandemic.
The main categories of these actions were made to small businesses by
offering grants and ad credits, media/news as they implemented fact-
checking and grants for local news, healthcare in the form of Covid-19
research and frontline support, and relief efforts such as public safety and
non-profit donations
$1.25 billion
total amount spent by
GAFAM for the cause 2
12 What is Big Tech Contributing to Help Fight COVID-19?
$681.5
million
total amount spent by
Alphabet, Facebook, and
Amazon combined to
support small businesses1

20. Google responded 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 launched an initiative that committed $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
capital 2
2-3 million face
masks were 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. Apple was committed to help the
world bounce back from the
pandemic
It teamed up with Google to provide virus-tracking services for
deconfinement
Apple consistently published updates on its website and social media
regarding its efforts to stop the pandemic. It 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. Apple teamed
up with Google to build a Bluetooth-based Covid-19 contact tracing platform
which will alert users of close exposure to the coronavirus
10 million
masks were provided by
Apple to healthcare
professionals in the United
States and Europe 1
1Techcrunch: Apple will donate 10m face masks to healthcare workers
2Mashable: Apple Will Donate A Part of Red iPhone SE Sale Proceeds To
COVID-19 Relief
100% of eligible
proceeds from
(PRODUCT) RED
purchases went to the
Global Fund's COVID-19
Response 2

22. Amazon kicked off its donations in
the USA
CEO Jeff Bezos worked closely with the WHO to stop the virus
Led by CEO, Jeff Bezos, Amazon worked 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
$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 Amazon Official Blog
2Vox: Why Jeff Bezos’s $100 million donation wont satisfy his critics

23. Facebook launched 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 to donate to nonprofit fundraisers
$20 million
donated by Facebook to
United Nations
Foundations and World
Health Organization 1
720,000
masks were 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

24. Microsoft worked hard to protect its
employees and community
And teamed up with institutions to provide needed research and
technology to stop Covid-19
The company worked 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 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 partnered with colleges and
institutions around the world to open a research data set called the Covid-19
Open Research Data Set which 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 will
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 Saturday
2 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 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 will
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
--------------------------
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E-mail: yves@lighthouse.fr
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the future of luxury:
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