Luxury Fashion Industry Hard To Break Through The Epidemic "Spawn" Style Single Product

Sergio Rossi, the legendary designer of footwear industry in Italy, died at the age of 84 when he died of new crown pneumonia in April 3, 2020. He was the first fashion master to die due to the disease. This bad news is just like the metaphor of the overall downturn and recession in the luxury fashion industry. At present, with the number of overseas diagnoses constantly refreshing, luxury stores are experiencing a cliff breaking trend.

According to the global luxury goods index released by Bloomberg, the market share of luxury goods has evaporated over 1/4 in the first two months of this year. But in the face of such a darkest moment, it is impossible to sit back and wait for "loss". Some major luxury brands have already responded quickly to a series of worst cases in response to supply chain disruption, production pause and large-scale closes and closes. At the same time, Chinese designers have designed and produced protective products with both fashionable and functional features to respond to the needs of the society for new protective materials.

The luxury industry has been hit hard by the proliferation of new coronaviruses throughout the world and the increasingly stringent control measures. IC photo

Luxury retail market "cool"

In March 26th, Bain consulting released the latest luxury Research Report. The luxury industry has been seriously hit by the proliferation of new coronavirus and its increasingly stringent control measures. It is predicted that the luxury market will shrink by 15% to 35% in 2020 and the loss is estimated to be between 650 and 75 billion dollars. According to statistics, the overall sales volume of the global luxury goods market dropped by 25%-30% in the first quarter of 2020.

Obviously, compared with luxury fashion handbags and evening dresses, people who are now at home seem to be more interested in buying toilet paper and hand washing. At this time of the year, consumers gathered in the spring to refresh their image and update wardrobes, and retailers mostly sold products at full price. Affected by the epidemic, most people stay at home and shops are forced to close, resulting in an increase in inventory pressure caused by idle spring products, but these goods are likely to be out of date when customers resume shopping.

In this regard, although discount sale has always been the most dislike marketing tool in the luxury industry, the head luxury retailers such as Neiman Marcus and Nordstrom all agree that at present, "broken arm survival" is the only way out. On the website of Neiman Marcus, the Tom Ford glasses sold for $400 on weekdays are now available at half price. The Derek Lam striped shirt skirt sold by Sax's top department store in Fifth Avenue is priced at only $237, equivalent to forty percent off. Nordstrom launched the Ferragamo tow price of $225, far below the daily retail price of $375.

Promotional activities can increase sales, but fail to reach daily business level. Even luxury retailers even choose to fight online sales, which is far from being able to compensate for the loss of stores due to mandatory closure. In March 24th, Neiman Marcus, who was saddled with an earlier $4 billion 300 million debt, finally became embarrassed and formally announced the application for bankruptcy reorganization with the bank. The epidemic has given it its last fatal blow.

Atypical "save oneself"

In addition to the serious impact on retailers, the global outbreak of the new crown disease has caused different degrees of impact on the major luxury brands. Many brands began to reduce supplier orders from the end of January. In February, orders fell sharply, and by March, orders were almost zero. As the epidemic continues to rage, in order to reduce economic losses, the suspension of business has become a common strategy for many brands. Some have temporarily closed some production lines, and some have had to relieve their predicament by laying off unpaid leave or reducing wages.

The Capri group of Michael Kors said on April 7th that it would provide unpaid leave to all staff in North American stores, involving more than 7000 employees. The plan came into effect in April 11th, and the renewal date of stores in North America and Europe is tentatively scheduled for June 1st or other safe enough dates. In the 2021 fiscal year, Capri board members will cut salaries by 50%, while employees at other levels will face about 20% pay cuts to protect company cash flow. The group also plans to significantly reduce capital expenditure and marketing expenses in fiscal 2021, and postpone the opening of new stores. "The new crown epidemic is affecting the whole world and the global economy at a rate we can't predict. This is a challenging period for us." Capri Group Chairman and CEO John Idol said in the announcement, "we are working hard to solve this unprecedented problem through various measures, protect our employees and maintain our company's capital flexibility." While Loewe and Valentino announced the closure of all shops in Europe and North America, the former also temporarily shut down factories, all of which were telecommuting. Inditex, the parent company of Zara, also said it was considering laying off all the 25 thousand salesmen of its brand in Spain.

In the face of the crisis, luxury brands at the top of Pyramid, apart from focusing on their own group's rescue, are also concerned about the overall situation of the epidemic, and have taken the initiative to shoulder their social responsibilities. On the one hand, luxury brands have made donations to the global anti epidemic activities, and Prada, Gucci and Giorgio Armani have donated millions of euros to support the production of respirators and the construction of hospitals. On the other hand, the major luxury brands have also announced the switch to production, mobilizing the local workforce to produce masks, alcohol free hand sanitizers and personal protective items for medical professionals. It seems to be a helpless move, but it also shows the humanistic concern of the big brand, and creates a responsible brand image of the luxury enterprise.

It is worth mentioning that the epidemic even quietly affects the fashion design trend of luxury goods. The financial crisis in 2008 brought a curtain to the fashionable and luxurious design style of luxury goods, and the new generation of simple design represented by Phoebe Philo during C line line and Bottega Veneta no longer full of logo handbags stood on the stage of history. After ten years, the aesthetic trend of fashion has changed again to a similar trend, and the breath of change has also penetrated into the design of the new generation. Gucci's latest series greatly simplifies the complex baroque style of the past. Bottega Veneta, also under the leadership of Phoebe Philo's disciple Daniel Lee, attempts to restart the idea with a streamlined form. Famous fashion trend Forecast Ltd WGSN fashion director Francesca Muston told fashion business review that when the uncertainty is full, mainstream consumers will consider more professional, real and everyday clothes when buying, and pay more attention to what they have bought. "In times of anxiety, consumers want to get away and focus on what is really important, such as how we spend time and money," she said. Joan Kaufman, a private shopping consultant in New York, suggests that for anxious consumers, such as Chanel and Herm s, a brand with a long history and success story will become a safer choice for this period.

Huan Xin "war epidemic" modeling

With more and more fashion stars such as Gwyeth Patru and Kim Kardashian releasing their fashionable photos of wearing masks on social media, how to maintain a good appearance at the peak of the epidemic season has gradually become the focus of attention in fashion circles. Some Chinese designers have also seen the huge demand for fashion and protective clothing.

When China's epidemic was just rising, an old coat of fashion brand JNBY was suddenly "bought". This is a cotton filled overcoat with a full head protective cover. The whole dress only exposes two eyes, and the whole hand is well protected. Liu Wei, a designer from Beijing, saw the new demand for clothes. She said: "the outbreak of the epidemic just broke out in China, and I found that people put on all kinds of temporary protective clothing for self-protection. I also noticed that medical personnel in Wuhan were wearing thin protective clothing that was not safe enough, and when they took off these airtight protective clothing, they often sweat and look very bad. So she sprouted the idea of designing new protective clothing. The newly designed protective clothing is made of waterproof, antistatic and dust-proof fabrics. The bottom layer is a germ free layer, plus a sleeved protective clothing, plus a headgear that protects the head and shoulders. The whole three piece suit is both antibacterial and breathable. Later, Liu Wei's design was sent to the front line of Wuhan for medical staff and relatives to care for the sick.

Another designer in Beijing is Kathrin Von Rechenberg from Germany. In response to the outbreak, she designed a silk mask with leaf coloring and a disposable filter. She said that Westerners do not wear masks, and they think only patients need to wear masks. But if they think they are wearing a fashion item, they will be more willing to wear masks voluntarily. "At the very beginning, I just wanted to give my mask to my customers and friends," she said. But then people asked me where I could buy them, so I designed more products and sold them in stores. Wearing masks has become a new common sense. My friends are very happy that they can wear such stylish fashion items. "

Although the downturn in the market will last long and how far it will affect our lives is still unknown, but as Bain concluded at the end of the survey report, "we do not think this will be permanent. After the current situation is stable, the global influence of luxury goods will once again become an advantage. The brand can rise from the crisis, and the lessons learned from the dark days of 2020 will become the driving force for sustainable development in the 2021 and beyond.

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