NEW YORK, March 19, 2020 (GLOBE NEWSWIRE) -- The world is in a state of fear and anxiety. It’s all hands-on deck. Governments, healthcare entities, businesses and citizens must all come together to survive the crisis and begin to thrive again. In order to provide key insights and recommendations that are actionable, Luxury Institute reached out to all members of its Global Luxury Expert Network who are operating at the front lines of the global luxury industry to get a crowdsourced view of the situation. Here are their insights and recommendations in a time of crisis.
The Most Significant Consequences Of COVID-19
What Changes Can We Expect As A Result Of This Pandemic?
It is difficult to predict how the crisis will rewire the needs and wants of all luxury consumers, and brands alike, but as in all major crises in history, there will be long-lasting effects in perceptions and behaviors.
Members recognize that predicting the future is a futile exercise for the most part. Here are some areas of question that Global Luxury Expert Network members believe will be considered and/or reconsidered by affluent consumers and brands in light of the pandemic:
How Long Will The Crisis Last?
The reality is no one knows for sure. According to GLEN members, here is the range of estimates as to how long the crisis may last:
Recommended Responses From Governments And Brands
Manage the fear and uncertainty that everyone has, naturally, and instead take clear, decisive action now to protect employees, partners, clients and communities. Financial sacrifice to do so now will build huge goodwill and trust for the future.
Resist the temptation to contact clients during the crisis with marketing or selling techniques that pretend to care, yet, are disingenuous. They will be seen for what they are. If you have genuine human to human relationships with clients then act accordingly, human to human, out of genuine concern.
Trust that while most governments acted late, the right measures are finally being taken in most countries, and social distancing will help dramatically. Ultimately, people are rational, and have a very strong instinct for survival. Fear is your friend at this moment because it inspires survival tactics. Panic is useless. Government needs to help prevent panic with medical and food supply chain resources, and dramatically strong economic stimulus. Trust is earned or depleted with every move.
Rethink all your investments for 2020 and eliminate the hobbies. Continue to invest for the bright future because humanity always falls forward, then gets up, then sprints. Technology will be a critical investment, but don’t be fooled into thinking that bricks and mortar, and trusted expert advisors, will not be a big part of the equation for high value luxury goods and services. In true luxury, expertise and emotional intelligence will always matter most.
After you take care of the immediate and urgent needs, begin to thoroughly research and brainstorm solutions and innovations based on the effects and needs that employees and clients will have in the transition and aftermath of the pandemic. As one GLEN member put it, in asking the hard questions that a pandemic generates “more than ever, luxury needs to be part of the solution, not part of the problem. Luxury needs to have a soul.”
Consumers and employees will be scrutinizing brand leadership for true expertise, deep empathy, trustworthiness, generosity and kindness like never before. Ethics, security, sustainability, personal data privacy, and true personalization will be big tests for all luxury brands. Do not fail them, or you will have wasted the few opportunities that a pandemic crisis creates.
A Message From Luxury Institute CEO, Milton Pedraza
Thank you to the Global Luxury Expert Network members who participated from all over the world to help us all learn and reflect. Special thanks to Piero di Pasquale and his wife, Carolina Guthmann, for their phenomenal insights from Italy. This is a moment when we have to practice social distancing. However, mentally, we are all holding hands tightly across the world as we pray and do what we need to do to be safe and keep our elders and children safe. We do it because they are our past, and our future. We who are able, need to take care of the present. This too shall pass, and the entire human race will be so much stronger. Let’s each do our part with courage, kindness and humility, right now, when it counts. We will have losses, but we will be ok. And then, we will thrive again. Guaranteed. Let it be said that the luxury industry was a beacon and met its human and moral obligations, to its employees, partners, clients and society at large. Let’s teach our children by example, and then let’s teach them the lessons learned.
About Luxury Institute And The Global Luxury Expert Network (GLEN)
Luxury Institute is the world's most trusted research, training, and elite business solutions partner for luxury and premium goods and services brands. With the largest global network of luxury executives and experts, Luxury Institute has the ability to provide its clients with high-performance, leading-edge business solutions developed by the best, most successful minds in the industry.
Over the last 17 years, Luxury Institute has served over 1,100 luxury and premium goods and services brands. Luxury Institute has conducted more quantitative and qualitative research with affluent, wealthy and uber-wealthy consumers than any other entity. This knowledge has led to the development of its scientifically proven high-performance, emotional intelligence-based education system, Luxcelerate, that dramatically improves brand culture and financial performance.
To learn more about Luxury Institute, the Global Luxury Expert Network (GLEN), or to become an expert member, please visit Luxury Institute.
Milton Pedraza: mpedraza@luxuryinstitute.com