The 2020 COVID-19 pandemic has caused a severe ripple effect on global businesses, but we take a look at the top 10 luxury labels that have come out on top…
Our modern society is a consumer economy, and when a pandemic torments the world, then our global businesses pay the price. The United States has since recorded its biggest slump in national GDP, a drop of 32.9%, and the U.K. suffered a shattering decline of 12.1% according to their second quarterly report. The COVID-19 pandemic has restricted the movement of people and, therefore, their spending habits. If we do not spend money, the global economy does not grow – simple! With the global population locked inside our homes, the retail fashion industry has taken a massive hit.
We’re taking a look at the 10 biggest luxury labels that have succeeded in a time of confusion and hysteria.
Porsche
The luxurious car manufacturer started the COVID-19 pandemic like everyone else: in a state of constant struggle. Porsche recorded a significant sink in revenue by 12.4%, and the year was looking grim. But all of a sudden their global sales, especially in China, peaked and never looked to dwindle. Since the pandemic, Porsche is worth approximately $34 billion, which is an incredible growth of 15.6% from 2019. Even during a worldwide pandemic, the world’s leading luxury car manufacturer has continued to impress. Porsche is now leading the way to pursue a sustainable future economically, environmentally, and socially. In the words of Oliver Blume, the CEO of Porsche:
“It is particularly important to us during the coronavirus crisis to play an active role in society and to take on responsibility. Helping others is an integral part of the Porsche culture.”
We watch with eager eyes to see what Porsche has in store for us next year!
Gucci
At the dawn of COVID-19, Italy found itself in the deadly grasp of the pandemic. Due to its ageing population, the country was in a serious crisis. In this time, the Gucci label donated a remarkable €1 million to the National Civil Protection Department helping to aid the Italian health organisations with new ICU services. As well as this, Gucci donated a further €1 million to the United Nations Foundation COVID-19 Solidarity Response Fund to assist the understanding and treatment of the illness. The Gucci label has truly used its power and influence to aid the less fortunate of the world. However, Gucci has also built on its 2019 success. The COVID-19 pandemic has not affected the value of the label, as it has experienced an increase of around 20% to a value of $17.6 billion. The COVID-19 pandemic has truly shown the power of Gucci, economically and socially.
Louis Vuitton
One of the largest, luxurious fashion labels on the planet had struggled to find its feet at the beginning of the 2020 season. Louis Vuitton is one of the largest subsidiaries of the LVMH group, and even though COVID-19 had caused the group to lose 38% of its value, Louis Vuitton stood strong. With the label’s value rising by around 21.4%, Louis Vuitton has shown its versatility during the toughest economic period of the modern era.
To combat the COVID-19 spread, Louis Vuitton has announced their face-shield range to promote safety and, above all, beauty. We wait to see what is next for the cutting-edge luxury label.
Cartier
Just like LVMH, the Richemont group was stripped of approximately $880 million in the first three months of the COVID-19 pandemic. It was losing value first. However, one of the world’s leading watch and jewellery labels, Cartier, was beginning to combat the raging pandemic. Even though the label closed their stores in much of Asia, the watch struck now for Cartier.
The label accounted for the majority of Richemont’s €7 billion sales, as well as boosting its own value. From $13.6 billion, Cartier rose by 10% to be worth approximately $15 billion in 2020. Cartier has only proven that it is a staple of luxury jewellery and continues to dominate in the COVID-19 era.
Chanel
Stores were closing worldwide, society was in disarray. The luxury label clearly had its back to the ropes, but the world was amazed by the resilience of Chanel in a time of true economic hardship.
Upon reopening around 85% of its global stores, Chanel experienced a remarkable boom in sales. Chanel faithfuls were returning to their holy lands in Milan, Paris, and especially China, where they saw a sales increase of over 100%! As a whole, Chanel has reported revenue growth of approximately 19.4% from its 2019 successes and is now valued at $13.7 billion. But as Philippe Blondiaux, Chanel’s finance chief, points out:
“We anticipate that the external environment will continue to impact the luxury sector negatively for at least the next 18 to 24 months.”
If Chanel continues its trend during 2020 well into the 2021 season, then it will clearly establish itself as one of the most powerful luxury labels in the world. Wait to see how Chanel tracks in the upcoming months!
Hermès
The COVID-19 outbreak has seen a huge surge in the luxury label’s delivery services in the U.K. since the lockdown. Hermès was led to invest approximately $100 million to boost its delivery capacity by supplying more than 10 000 new jobs to combat the pandemic. The label was expecting an incredible rise in deliveries across the upcoming Christmas season, with reports predicting around 3.5 million deliveries a day!
China was also obsessed with the luxurious label. After the reopening of its Guangzhou store, Hermès raked in sales exceeding $2.7 million on the first day alone. It was the largest sale in any Chinese boutique of all time. Hermès is now valued at around $12 billion, a growth of 9.1% from their 2019 reports. Even in 2020, Hermès is a powerhouse of luxury.
Ferrari
Just like Gucci’s generosity, the luxury car manufacturer has donated upwards of €10 million and 150 ventilators to the Civil Protection Department, Italy. As well as manufacturing sportscars, Ferrari has used their Maranello factory as a workshop to produce respirator valves for protective face masks. 2020 has called for the world’s leading companies to do their part amidst COVID-19, and Ferrari has truly answered.
Ferrari has used its immense power and capital to battle the spread of COVID-19 but has also seen an increase in its overall value. Ferrari is now valued at $9.1 billion and is a tour de force of luxury car manufacturing. Stability by the dashboard light.
Rolex
Time is the basis of the watch industry, and the time for Rolex is now. The 2020 season has not allowed much of a boom for the luxury watch labels, but Rolex has pushed through the hardships of the COVID-19 pandemic. Factories closed. Revenues down. Were we watching the demise of one of our most beloved watch labels? As much as Rolex had dropped around 2% in value, the label is still worth around $8 billion.
Yes, the pandemic has dented the label, but Rolex remains a constant, shining light in a time of gloomy darkness.
Dior
COVID-19 has had a major impact on the fashion industry in many ways. For one, lockdowns and socially distancing guidelines have pretty much ruled out larger than life, extravagant fashion shows. But iconic, innovative labels find a way. Dior’s most recent fashion show was streamed onto the social media platform, TikTok, to post the live show. Generally, Dior fashion shows manage approximately 25 million views, but with the incredible reach of social media, the show was met with 40 million views. Now, more than ever, people were taking notice of the luxurious fashion label. The label is now valued at around $7 billion, and people clearly want more from the exuberant Dior.
Coach
Just like Dior, Coach explored the digitalised world. The label’s 2021 Spring ready-to-wear collection was captured entirely via Zoom meetings across three different continents. Showcasing the star-power of “now” artist Megan Thee Stallion, the luxury label intertwined 1970’s fashion with the present. Coach has always been a leading label in luxurious accessories and fashion, but 2020 has skyrocketed its influence. Coach is the leading handbag designer and is valued at around $7 billion. Even though the label was faced with a drop of approximately 10% in value, Coach is still as immovable as ever. Everyone here at Fashion Industry Broadcast is transfixed with Coach and its awaiting possibilities!