It is very interesting to witness how watch and jewelry brands are reacting to the spread of COVID-19. Some are laying low and keeping quiet, others are pitching in as best they can to be part of the solution, to help with desperately needed supplies and funding to find a vaccine. Yet others are still touting luxury goods and unveiling new products that they hope will offer consumers a relief from the inundation of Coronavirus news, and that may help save the small retailers forced to close their doors and maybe help drive the economy.
Bulgari & ICR Hand Cleansing Gel
The LVMH Group in Europe has turned several of its perfumery brands (Dior, Guerlain, Givenchy) into hand-sanitizer workshops to be able to supply medical workers in France (its home country) with critical product. Bulgari, an LVMH brand, is also producing hand sanitizer gel in cooperation with its long-standing fragrance partner, ICR. Several hundreds of thousands of hand gel bottles will be distributed to the Italian hospitals. Similarly, Louis Vuitton has repurposed its atelier and is making cloth masks. Additionally, LVMH Group was one of the first to contribute to funds to help find a cure for COVID-19.
Louis Vuitton has launched the production of hundreds of thousands of non-surgical protective masks, ... [+]
Thus far, though, many luxury brands have been slow to help on the American front, where luxury watches and jewelry have predominantly been in high demand. In fact, for many brands, this has been their key market.
Kering Group launches two-prong plan to help in America during COVID-19.
Today, though, the Kering Group (which owns Ulysse Nardin, Girard-Perregaux, Gucci, Boucheron and others) announced its donation of $1 million to the Centers for Disease Control and Prevention (CDC) Foundation to support healthcare workers in America. The goal is to provide personal protection equipment (PPE) and other medical supplies to the front line.
Kering Group and its various fashion brands (Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni) join the American fashion industry by supporting A Common Thread, the CFDA/Vogue Fashion Fund initiative and “Your Friends in New York™ Want to Help” organization – in an effort to produce surgical masks and gowns for healthcare professionals. This initiative follows suit with what Kering has done in France, Italy and China.
American jewelry designer David Yurman and his family, who started the Yurman Family Foundation in 2000 for charitable causes, has also announced its pledge of $1 million to support efforts to help during this COVID-19 pandemic. David Yurman is a family owned and operated business for 50 years and is located in New York, so its efforts are naturally starting there, especially since the city has become an epicenter for the virus in America.
Efforts For Retail Stimulation
Some smaller US-based brands are trying to help retailers and stimulate economy by creating on-line sales that are credited back to retailers. Ernst Benz, for instance, created a special plan to highly a different timepiece each day on its social media channels and to talk about the people involved in the making of the watch. The brand even selected some limited-edition pieces from its archives to offer for sale, with proceeds being donated to help people in need. Any online purchase will be credited to the local authorized retailer in the buyer’s city. Additionally, proceeds from online sales though the end of April will be donated to Doctors Without Borders.
Even big brands like Patek Philippe, which previously never allowed online sales of its luxury timepieces, is allowing limited online selling for its authorized retailers in hopes it will help support the stores.
Patek Philippe, along with watch giants Rolex and its sister-brand Tudor, have announced that they will not be showcasing new product at the end of this month as expected. Later this month and early the following month are when the big Swiss watch exhibitions, SIHH and Baselworld, would have been held. However, with those shows canceled, it is expected that most brands will announce their new products digitally during that timeframe.
According to a statement issued by Rolex, “Given the global impact [of] the virus, we have decided to postpone the announcement to a later date. We have not currently identified new timing for our releases, but we will get back to you in due course with further information. Our priority at this time is to stand by the people with whom we work and to bring help and support in the best way possible.”
Many speculate that it is burden on retailers to announce new products that the stores haven’t been able to see yet and can’t really order because they’re not opened for business. Additionally, they still have so much older inventory left due to the closures that it would be an added strain on an already stressed retail environment. Still, many brands are moving ahead as planned with big announcements and new products as they try to offer consumers a diversion from the virus, and a little hope for the future.
