Luxury Brands Navigate Shanghai’s Lockdown to Keep VIPs Pampered

A closed store of French luxury brand Louis Vuitton is pictured during lockdown, amid the coronavirus disease (COVID-19) pandemic, in Shanghai, China, May 6, 2022. (Reuters)
A closed store of French luxury brand Louis Vuitton is pictured during lockdown, amid the coronavirus disease (COVID-19) pandemic, in Shanghai, China, May 6, 2022. (Reuters)
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Luxury Brands Navigate Shanghai’s Lockdown to Keep VIPs Pampered

A closed store of French luxury brand Louis Vuitton is pictured during lockdown, amid the coronavirus disease (COVID-19) pandemic, in Shanghai, China, May 6, 2022. (Reuters)
A closed store of French luxury brand Louis Vuitton is pictured during lockdown, amid the coronavirus disease (COVID-19) pandemic, in Shanghai, China, May 6, 2022. (Reuters)

What Ms. Zhang didn't expect when she hunkered down for Shanghai's citywide lockdown was complementary ready meals and desserts from luxury brands such as Louis Vuitton and Cartier to start arriving the very next day.

Since the COVID-19 containment began on April 1, closing stores and paralyzing online shopping, brands have overcome attendant delivery difficulties to gift provisions to "very important clients" (VICs) like 24-year-old entrepreneur Zhang.

Though not high-value gifts, the effort to keep in touch has "impressed and surprised us," said Zhang, who wanted to be identified by surname only citing privacy.

Shanghai has seen some of the strictest containment measures worldwide, with residents forbidden from leaving apartments in blocks where COVID-19 cases have been found, while some buildings and even entire streets have been fenced off.

With supermarkets shuttered and logistics chains upended, residents have struggled to buy food. Government provisions aimed at filling gaps have been delivered sporadically, with reports of mixed quality from district to district.

Helping out, many companies have delivered provisions to employees. For the more wealthy, banks and high-end hotels have joined luxury brands in sending out goodies - a privilege not unnoticed on social media.

"During the epidemic, class division is more obvious. Ordinary citizens rush to grab rice while considerate luxury brands can't wait to give first-class takeaway to VIP customers," wrote Weibo user Li Xiaozhou's Tea Room.

Besides gifts, some brands have organized online classes. La Mer has taught DIY facial massages while Dior has offered seven-day passes for virtual classes at a premium yoga studio.

Prada has hosted a virtual cultural club, inviting writers, directors and musicians to recommend books, movies and albums.

Prada SpA declined to elaborate when contacted by Reuters beyond saying the initiative had been well-received.

Christian Dior SE and LVMH Moet Hennessy Louis Vuitton SE declined to comment.

Cartier, owned by Compagnie Financiere Richemont SA, and La Mer, owned by Estee Lauder Companies Inc, did not respond to requests for comment.

Emotional connection

As much as 12% of China's offline luxury retail is in Shanghai so store closure has necessitated a pivot to virtually, but still personally, serving VIPs, said Thomas Piachaud, Shanghai-based head of strategy at consultancy Re-Hub.

Consumers in this segment are the most likely to escape the economic impact of lockdown and emerge more ready to spend, Piachaud said.

"These kind of VIP customers are the ones that brands really know on a more personal level. Brands know how to tailor communications and talk to them," he said.

Luxury is not just selling products; it is also selling an emotional connection, said Lily Lu, senior business director for digital at marketing firm Gusto Luxe.

"There is a bond that goes beyond the product," said Lu. "During the toughest times, even though the customer can't buy things from the brand (right now) that relationship needs to be maintained and nurtured."

VIC status comes with annual spending of hundreds of thousands of yuan (about $15,000) at some brands, though minimum spend varies widely. Some sales staff can also award the status to people they think likely to spend more in the future.

Though Shanghai VICs cannot spend in stores at the moment, brands are trying to ensure they do when lockdown is lifted.

"We got maybe 10 birthday cakes and flowers from different brands," Zhang said, referring to her mother, who is also a VIC. "I'm sure after lockdown, purchases will be made."



Pieter Mulier Named Creative Director of Versace

(FILES) Pieter Mulier attends the 2025 CFDA Awards at The American Museum of Natural History on November 03, 2025 in New York City. (Photo by Dimitrios Kambouris / GETTY IMAGES NORTH AMERICA / AFP)
(FILES) Pieter Mulier attends the 2025 CFDA Awards at The American Museum of Natural History on November 03, 2025 in New York City. (Photo by Dimitrios Kambouris / GETTY IMAGES NORTH AMERICA / AFP)
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Pieter Mulier Named Creative Director of Versace

(FILES) Pieter Mulier attends the 2025 CFDA Awards at The American Museum of Natural History on November 03, 2025 in New York City. (Photo by Dimitrios Kambouris / GETTY IMAGES NORTH AMERICA / AFP)
(FILES) Pieter Mulier attends the 2025 CFDA Awards at The American Museum of Natural History on November 03, 2025 in New York City. (Photo by Dimitrios Kambouris / GETTY IMAGES NORTH AMERICA / AFP)

Belgian fashion designer Pieter Mulier has been named the new creative director of the Milan fashion house Versace starting July 1, according to an announcement on Thursday from the Prada Group, which owns Versace.

Mulier is currently creative director of the French fashion house Alaïa, and was previously the right-hand man of fellow Belgian designer and Prada co-creative director Raf Simons at Calvin Klein, Jil Sander and Dior.

In his new role, Mulier will report to Versace executive chairman Lorenzo Bertelli, the designated successor to manage the family-run Prada Group. Bertelli is the son of Miuccia Prada and Prada Group chairman Patrizio Bertelli.

“We believe that he can truly unlock Versace’s full potential and that he will be able to engage in a fruitful dialogue,’’ The Associated Press quoted Lorenzo Bertelli as saying of Mulier in a statement.

Mulier takes over from Dario Vitale, who departed in December after previewing just one collection during his short-lived Versace stint.

Mulier was honored last fall by supermodel and longtime Alaïa muse Naomi Campbell at the Council of Fashion Designers of America for his work paying tribute to brand founder Azzedine Alaïa. Mulier took the creative helm in 2021, after Alaïa’s death.


Ralph Lauren’s Margin Caution Eclipses Stronger‑than‑expected Quarterly Results

Guests wait after viewing the latest Ralph Lauren collection in New York City, US, April 17, 2025. REUTERS/Caitlin Ochs/File photo
Guests wait after viewing the latest Ralph Lauren collection in New York City, US, April 17, 2025. REUTERS/Caitlin Ochs/File photo
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Ralph Lauren’s Margin Caution Eclipses Stronger‑than‑expected Quarterly Results

Guests wait after viewing the latest Ralph Lauren collection in New York City, US, April 17, 2025. REUTERS/Caitlin Ochs/File photo
Guests wait after viewing the latest Ralph Lauren collection in New York City, US, April 17, 2025. REUTERS/Caitlin Ochs/File photo

Ralph Lauren posted third-quarter results above Wall Street estimates on Thursday, but the luxury retailer's warning of margin pressure tied to US tariffs sent its shares down nearly 6.4% in premarket trading.

The company expects fourth-quarter margins, its smallest revenue period, to shrink about 80 to 120 basis points due to higher tariff pressure and marketing spend.

Ralph Lauren, which sources its products from regions such as China, India and Vietnam, has relied on raising prices and reallocating production to regions with lower duty exposure to offset US tariff pressures, Reuters reported.

"Ralph Lauren has been able to raise prices for some time now. There is some limit on how long it can continue to do this. I think (the company's) gross margins are near peak levels," Morningstar analyst David Swartz said.

The company, which sells $148 striped linen shirts and $498 leather handbags, has tightened inventory, lifted full-price sales and refreshed core styles, boosting its appeal among wealthier and younger customers, including Gen Z.

Higher-income households are still splurging on luxury items, travel and restaurant meals, while lower- and middle-income consumers are strained by higher costs for rents and food as well as a softer job market.

The New York City-based company saw quarterly operating costs jump 12% year-on-year as it ramped up brand building efforts through sports-focused brand campaigns such as Wimbledon and the US Open tennis championship.

The luxury retailer said revenue in the quarter ended December 27 rose 12% to $2.41 billion, above analysts' estimates of a 7.9% rise to $2.31 billion, according to data compiled by LSEG.

It earned $6.22 per share, excluding items, compared to expectations of $5.81, aided by a 220 basis points increase in margins and an 18% rise in average unit retail across its direct-to-consumer channel.

Ralph Lauren now expects fiscal 2026 revenue to rise in the high single to low double digits on a constant currency basis, up from its prior forecast of a 5% to 7% growth.


Saudi Fashion Commission, Kering Launch 'Kering Generation Award X MENA'

This year's award builds on the strong success of the 2025 award, which attracted more than 500 applications, shortlisted 21 finalists, and recognized three winners. SPA
This year's award builds on the strong success of the 2025 award, which attracted more than 500 applications, shortlisted 21 finalists, and recognized three winners. SPA
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Saudi Fashion Commission, Kering Launch 'Kering Generation Award X MENA'

This year's award builds on the strong success of the 2025 award, which attracted more than 500 applications, shortlisted 21 finalists, and recognized three winners. SPA
This year's award builds on the strong success of the 2025 award, which attracted more than 500 applications, shortlisted 21 finalists, and recognized three winners. SPA

Saudi Arabia’s Fashion Commission and global luxury group Kering have launched the "Kering Generation Award X MENA" across the Middle East and North Africa (MENA) for 2026.

The announcement was made on Tuesday during the opening of the RLC Global Forum, hosted at the French Embassy in Riyadh.

This year's award builds on the strong success of the 2025 award, which attracted more than 500 applications, shortlisted 21 finalists, and recognized three winners.

Participants benefited from mentorship programs, workshops, and opportunities to strengthen their global presence. Building on this momentum, the 2026 program seeks to expand its impact across the MENA region.

The 2026 award focuses on four key areas of sustainable fashion: innovation in regenerative materials and clean production, circular design and sustainable business models, nature conservation and animal welfare, and consumer awareness and cultural engagement.

The program targets startups across the MENA region that operate in, or positively influence, the sustainable fashion sector, provided they demonstrate innovation capabilities and the ability to deliver measurable sustainability outcomes.