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August 28, 2020 5 min read

Combat clothing: Luxury brands are required to prove from a social conscience Luxury brands such as Dolce & Gabbana, Prada and Gucci have been hit hard by the Corona crisis and now even the protesters on the streets of the United States are venting their anger on them. Along with the decline in sales of fashion houses will now have to prove ethnic diversity and social conscience. Some will hide their defiant logo, some will be sold to giant corporations and others will not survive Elite Minmar 08: 4315.06.20 Tags: disgusting fashions Racism Fashion beers are starting to go out of business but a wave of protests sweeping the world following the killing of George Floyd only sharpened luxury stores The ongoing crisis in the fashion world that deepened with the outbreak of the corona. After the fire has ignited the fashion industry and expensive brands are under pressure to take a stand on political and social issues, stores have been closed for months, consumers are showing more discretion when it comes to shopping, and changing priorities. Chanel, Gucci, Louis Vuitton and Dior may have survived global crises like World Wars and the Great Depression, but today's luxury brands - many incorporated into giant corporations like Kering and LVMH, and employing hundreds of thousands of workers around the world - have changed. During the 2008 crisis, luxury market profits fell by 9%. Now in the Chinese market, a major growth engine in the luxury industry, which returned to activity in April, there has already been a decline of 7.5% over the previous year. And this is just the beginning. British luxury brand Barbary has already reported a 27% drop in sales in the last quarter and has announced it will not distribute dividends to shareholders. And Gucci House is the last to announce that it will only hold two shows a year from now on (and not five as it used to). Fashion shows right Barbary and Gucci Fashion shows right Barbary and Gucci Photo: Reuters, AP Dris van Noten and other designers called on the industry not to hold early end-of-season sales as usual, and to postpone the collection schedule and delivery dates according to the actual seasons (summer clothes will be sold In summer and winter clothes in winter). Quite a few players will find it difficult to return to the arena and some of them may find a solution if they merge into the giant corporations, which do not suffer from a shortage of cash and can continue to pay their employees. The crisis is challenging the luxury industry, and especially those who control it, to adopt more creative thinking to meet consumer demands. They will also be examined in their sincere treatment of unabated protest, police violence and racism, ethnic diversity and other social and political issues that will dominate the cultural discourse from now on. Do they really care about George Floyd and racism or do they care about their public image? Social networks teach that ignoring what is happening in the world may make them irrelevant, but even a vague reference on their part can lead to antagonism. For example, the reaction of Virgil Abelou, the designer of the street fashion brand Off White and the artistic director of Louis Vuitton. The appointment of the black designer to head the French luxury brand marked a new era and hope. He has now suffered a tantrum of anger on networks when he hinted on his Instagram account that the rioters are not part of the street fashion culture "he is more bothered by the looting of off-white shops than by the police violence", some commented, "he does not care about the culture". Dolce & Gabbana store in Manhattan New York with shattered windows Dolce & Gabbana store in Manhattan New York with shattered windows Photo: Getty Images Consumers in the foreseeable future will likely see changes in consumption habits, among other things, demand may change to other categories, such as branded masks Or more street fashion than evening dresses, and the demand and consumption of luxury items may simply decrease. Consumers will decide to buy less, they will discover more awareness about the production processes and demand transparency, the demand for second-hand luxury products will increase, there will be an increase in online commerce and live sales. According to fashion historian and curator Yaara Kedar, "there is a tendency to dismiss fashion as a superficial thing that has no meaning, a luxury that is not needed in a crisis. But history teaches us how much fashion is related to our mindset. It is also connected to the ability to recover from a crisis," she says. "It has a profound psychological capacity and effect on us, and anyone who has ever felt an improvement in mood when buying a new shirt, after a haircut, or with a new blush, could attest to that. All the more so in times of crisis." The "lipstick effect" theory, according to which in times of economic crisis there will be a jump in the purchase of branded beauty products whose price is not high, strengthens her words. Thus, after the events of September 11, Leonard Lauder was quoted in the New York Times as saying that Estee Lauder's lipstick sales had increased significantly. And today, judging by the Financial Times, nail polish is the new lipstick effect. When beauty salons are closed, women do nail parties at home and buy more nail polish: Chanel nail polish, for example, sells in the UK for £ 22. And since the eruption of the corona, there has been a more than 218% increase in sales. Hermes Birkin Bag Hermes Birkin Bag Judging by history, many will also seek to buy minimalist items for investment, without an ID logo, such that their purchase can be justified by being timeless. According to Adv. Assaf Lapid and Adv. Racheli Zilberfarb-Schreiber, from AYR - Amar Reiter Jean Schochtowitz & Co., which also specializes in intellectual property, after the 2008 crisis, more luxury items were sold without a logo. "In 2009, Gucci launched the new Jackie bag, this time without a logo. It was marketed as a timeless item and was one of the fashion house's most profitable bags in those years, even though its price was almost double the price of the branded bag." The decline of logomania and the rise of the eternal item, says Zilberfarb-Schreiber, are not just a consumer-economic phenomenon. They also have significance in the legal world and in particular in the field of intellectual property. "The same trend of a consumer transition from an item with a logo shouting to an item that quietly reflects its value, raises the bar of the three-dimensional trademark, that is, a physical mark, which indicates in its form its origin." Such are also Hermes' Birkin and Kelly portfolios, which are the best example of the trend. On the first day of the opening of the Hermes store in Guangzhou, China after the closure, it reported sales of $ 2.7 million. According to Zilberfarb-Schreiber and Lapid, in the near future there will be an increase in the number of applications for registration of 3D trademarks, but not only. The two also anticipate an increase in the number of actual designs of designs, as happened in 2009-2007. The changes in the world of fashion and the trend of reducing the number of collections will probably now also lead to an increase in registration, in an attempt to combat counterfeiting. "The pirate paradox theory - according to which fakes drive the fashion economy by making the fake item irrelevant and challenging fashion houses to launch new collections - is invalid when the pace slows down. So you can't turn a blind eye, and you have to fight them through registration."


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