As Italy entered a new coronavirus lockdown and shut shops in March, Genoa-based jeweller Gismondi 1754 turned to messaging service WhatsApp to sell a 300,000-euro diamond ring to a wealthy Swiss client.
At the same time, sales assistants at luxury puffer jacket brand Moncler were arranging gourmet dinner deliveries to customers homes so they could dine in style while watching a video streaming of the brand's latest collection.
The pandemic has forced luxury goods companies to use social media, video and virtual showrooms to woo their wealthy customers in Europe and keep them shopping at a time when tourists, especially from China, have been absent for more than a year.
Retailers reopened in Britain and most of Italy on Monday, but they remain shut in France and access is restricted in Germany, where in Berlin, for example, a negative Covid test is required to go into most shops.
Senior executives in the industry said this trend of selling outside the traditional store network, while not replacing the need for physical shops, is here to stay.
"We are learning that we can also have a high level of service with a low level of physical contact," Moncler's boss Remo Ruffini told Reuters. "Distant sales are a new frontier, something in the middle between e-commerce and a traditional store."
Analysts say that lockdowns and "staycationing" mean that wealthy Europeans have money to spend that they are not using to splurge on fancy hotels or Michelin-starred restaurants.
Designer brands are keen to capture some of that cash.
High-end labels such as Hermes, which used to be more reticent to sell online, have had to fully embrace e-commerce. Online revenue for the industry has doubled to about 20 per cent of sales in the past year alone, based on analyst estimates. Boston Consulting Group expects that percentage to rise to 25 per cent by 2023.
Luxury labels have also invested in transforming store assistants into personal shoppers who pamper their VICs – very important clients – by sending them products at home and keeping in touch regularly. Most brands now stream products on social media and show customers specific product videos.
Before the pandemic, Gismondi would not have sold a 300,000-euro, 10-carat diamond ring without showing it to the client in person.
"I was on the phone chatting with the lady who is buying it, and it came up that this was the dream of a lifetime for her," Massimo Gismondi, chief executive of the jewellery group, said.
"If there is something I like they send it home. They know my size and if in doubt they send more than one size. I buy what I like and I send back the rest."
From that moment, an exchange started with the woman via WhatsApp and video-calls to find the perfect design for the ring that would be delivered to her home.
"People are craving for leisure, for returning to savour life and spending," Mr Gismondi told Reuters.
French luxury group LVMH's star label Louis Vuitton in addition to online sales has started taking its shops to wealthy clients' doorsteps in the US.
The "LV by Appointment" campaign essentially brings a tailor-made shop on wheels to the customer, curated with a personalised selection of pieces – from leather goods to watches and perfumes – for those who opt for the service.
LVMH, the first to report results for the first quarter, set a very bullish tone for the industry. Revenue bounced back strongly, with its fashion and leather goods division surging 52 per cent – double analysts' forecasts. Sales in Europe remained in negative territory, but the 9 per cent decline was a major improvement from the minus 24 per cent seen in the fourth quarter.
Luxury brands have had a strong recovery in China since shops began to reopen there last spring. But in Europe and the US finding new ways to connect with customers has helped them to mitigate last year's sales declines.
Analysts say that improving sales in those two regions should also help revenue this year. Sales in Europe and the US accounted for 60 per cent of the total in 2019 and should come in at just under 50 per cent by 2025, consultancy Bain said.
Francois-Henri Pinault, chief executive of Gucci owner Kering, said in February that the group's revenue from "distant sales" – or sales outside its global store network – had risen sharply last year. The group had trained 400 sales assistants in 16 countries for this purpose, he said.
One source at an Italian luxury fashion label said typically a brand's marketing department will provide a list of clients to contact based on what they have bought over the previous year.
The sales assistants then phone customers, show them the latest arrivals via video chat and send them clothes or shoes to try on.
"You create a strong relationship between the salespeople and the customer," Prada chief executive Patrizio Bertelli told Reuters.
"We have gone from the shop assistant that simply shows you a product to someone who also does a bit of marketing, knows customers, their taste and their habits, reaches out to them and sends them stuff home."
A Milan-based PR executive who spends on average 40,000 euros ($47,552) a year in Prada's stores said that since last year, Prada has regularly sent her videos about its clothes.
"If there is something I like, they send it home. They know my size and if in doubt, they send more than one size. I buy what I like and I send back the rest," she said.
Over the past year, cashmere sweater label Brunello Cucinelli has been organising video calls with 30 to 40 customers at once to keep them engaged.
"It allows us to have a dialogue with a number of people which, if we had to arrange a physical appointment, would take us perhaps three to four years," the brand's co-chief executive Luca Lisandroni told Reuters.
He also said that brands should not become too insistent in trying to sell their wares.
"Some people like being contacted and stimulated, others don't want to be solicited too much," he said.
Company profile
Name: Infinite8
Based: Dubai
Launch year: 2017
Number of employees: 90
Sector: Online gaming industry
Funding: $1.2m from a UAE angel investor
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
KILLING OF QASSEM SULEIMANI
Mohammed bin Zayed Majlis
More on animal trafficking
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Killing of Qassem Suleimani
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
Killing of Qassem Suleimani
The years Ramadan fell in May
INFO
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Winners
Ballon d’Or (Men’s)
Ousmane Dembélé (Paris Saint-Germain / France)
Ballon d’Or Féminin (Women’s)
Aitana Bonmatí (Barcelona / Spain)
Kopa Trophy (Best player under 21 – Men’s)
Lamine Yamal (Barcelona / Spain)
Best Young Women’s Player
Vicky López (Barcelona / Spain)
Yashin Trophy (Best Goalkeeper – Men’s)
Gianluigi Donnarumma (Paris Saint-Germain and Manchester City / Italy)
Best Women’s Goalkeeper
Hannah Hampton (England / Aston Villa and Chelsea)
Men’s Coach of the Year
Luis Enrique (Paris Saint-Germain)
Women’s Coach of the Year
Sarina Wiegman (England)
STAY%2C%20DAUGHTER
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THE SPECS
Engine: 1.5-litre turbocharged four-cylinder
Transmission: Constant Variable (CVT)
Power: 141bhp
Torque: 250Nm
Price: Dh64,500
On sale: Now
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Major honours
ARSENAL
BARCELONA
- La Liga - 2013
- Copa del Rey - 2012
- Fifa Club World Cup - 2011
CHELSEA
- Premier League - 2015, 2017
- FA Cup - 2018
- League Cup - 2015
SPAIN
- World Cup - 2010
- European Championship - 2008, 2012
Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
