Desserts from Louis Vuitton, yoga with Dior: Shanghai’s Covid-19 lockdown is not stopping luxury brands from pampering their VIP customers
- Luxury brands are gifting provisions, from food to a virtual cultural club, to their ‘very important clients’ in Shanghai during the city’s Covid-19 lockdown
- Customers who typically spend tens of thousands of dollars in their stores are the recipients of these freebies – a privilege not unnoticed on social media
What Ms Zhang didn’t expect when Shanghai’s Covid-19 lockdown began was complimentary ready meals and desserts from luxury brands such as Louis Vuitton and Cartier to start arriving the very next day.
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.
Shanghai has seen some of the strictest coronavirus measures worldwide, with residents forbidden from leaving their flats in blocks where Covid-19 cases have been found, while some buildings and even entire streets have been fenced off.
With supermarkets closed 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.
Many companies have delivered their own 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.
Shanghai lockdown: fashion designers talk about uncertain future with Covid
“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.
Prada has hosted a virtual cultural club, inviting writers, directors and musicians to recommend books, films and albums.
Prada declined to elaborate when contacted beyond saying the initiative had been well-received.
Cartier, owned by luxury conglomerate Richemont, and La Mer, owned by Estée Lauder, did not respond to requests for comment.
Even billionaires can’t find milk and bread during lockdowns it seems
As much as 12 per cent 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 US$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.”
