As the Coronavirus continues to affect lives globally, corporates have their own concerns mounting up. Unhealthy people means a deficient market. The biggest hit has been taken in China which is the epicentre of the pandemic as well as global consumption.
In the most recent news, Nike has decided to close all US stores up till March 27. The sportswear giant has also closed shop in Canada, New Zealand, Australia and Western Europe.
Specifically, luxury good companies that relied heavily on China have taken a hit. Chinese buyers accounted for roughly 40% of the €281 billion spent on luxury goods bought globally last year. However, they drove 80% of the growth. It is obvious why they were pushing the entire luxury goods ecosystem.
Obviously, the companies were quick to respond. Their solutions ranged from preventive to ones promising reparations.
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HOW DID THE LUXURY GOODS’ COMPANIES RESPOND TO CORONAVIRUS?
Kering, the owner of Gucci, Saint Laurent and Bottega Veneta announced that it was closing half of its luxury brand’s stores in China last week. It will also be reducing hours at those that are opening. In addition, inventory will be directed from China to other locations and launches and campaigns will be pushed back for now.
However, they have also taken some welcome steps, which even if they are driven by profit, will help a lot in the long run. LMVH donated about $2.3 million to the Chinese Red Cross Foundation which would help it to acquire medical supplies as well as obtaining more from Europe.
Kering donated about $1 million to the Hubei Red Cross foundation. Meanwhile, L’Oreal contributed $720, 000 to the Chinese Red Cross Foundation. Estee Lauder has contributed $290, 000, Shiseido donated $140, 000 and Swarovski donated $430, 000.
However, Dolce and Gabbana has gone the farthest, partnering with the Humanitas University to fund a Coronavirus research project. The research will be looking into the responses of the immune system to the virus. Plus, it aims to lay the groundwork for “the development and diagnostic and therapeutic interventions” against the threatening disease.
Clearly, the capitalist culture has found a way to fight the disease.