How Luxury Brands Can Win During a Crisis

Image credit: Van Cleef & Arpels


(jingdaily.com) - With markets in turmoil and uncertainty at peak levels, CEOs of brands — both in and out of the luxury industry — are asking me: What now? Nearly all sectors have felt an impact. With several parts of China on lockdown and travel between the mainland and Hong Kong restricted, the world’s leading luxury market is hurting. We’ve seen empty stores throughout China and consumers deferring, reevaluating, or canceling their purchases. After hitting China, the crisis moved to Japan, Korea, Europe, and the US. With growing uncertainty and daily new restrictions bombarding consumers, many are deferring non-essential purchases and focusing on crisis preparation. Sales of hand sanitizers, masks, and toilet paper are booming, and people are willing to buy these items at almost any cost. In Italy, a crisis hotspot and the home of many legacy luxury brands, people are willing to trade their apartments for a protective mask.