Fashion companies cut spending, P.R companies feel paid – WWD

As the coronavirus spreads worldwide, fashion companies postpone shows and events and shrink from advertising, while glossy magazines put their planned plans on hold. As a result, public relations agencies are feeling the impact in all of the fashion capitals.

Some are trying to weather the COVID-19 storm with full staff at the moment, but others have made the difficult decision in recent days to cut wages or cut staff.

Among these, PR Consulting, the New York agency directed by Pierre Rougier and Sylvie Picquet-Damesme, whose clients are Narciso Rodriguez, Dries Van Noten, Loewe, Acne, Gabriela Hearst, Raf Simons and Moncler.

“We were forced to make the heartbreaking decision to fire 32 employees at the end of the coming week in order to keep the business going under the current circumstances,” said Rougier and Picquet-Damesme in an email.

They added that they feel fortunate to have been able to keep many employees in their jobs and now hope that the federal government “will react and support companies like ours during this unprecedented period”.

New York-based boutique agency Sequel, formerly Think PR, whose customers include W Hotels Worldwide, Free People, Missoma, Century 21 Department Stores and BoxyCharm, also laid off staff and implemented pay cuts this week, but did not disclose figures.

“We had layoffs and we also had to take pay cuts. I think it’s hitting agencies of all sizes right now, ”said Tracey Manner, Senior Director. “Marriott is one of our customers. They have been customers for almost 15 years. So this is the global news of the impact of all these brands, but what about their partners? Nobody really talked about it.

“As a p.r. an agency or a communications agency or a marketing agency or an advertising agency, you are based on the revenues of the clients. The size of your team, your overhead – all of this is based on customer revenues, ”she added.

Manner and her business partner, Elaine Drebot-Hutchins, hope to bring all of their employees on board as soon as the situation has stabilized and in the meantime, she is communicating with other agencies to see how they can help each other in ways that do not would not be. This has not happened before. “We have a wonderful sister agency in the UK called Aisle8, so we’re talking about how we team up on certain brands where we might not have done this before. Now is the time to get creative. “She said.

In another New York boutique firm, Bradbury Lewis, founder Patrick Bradbury hopes he too can stay afloat. He had to let go of his new office manager a few weeks ago because the whole company was on the verge of retiring and had lost business. Since then, two of its four members have been on leave. He still pays for their health care and hopes to bring them back as soon as possible.

“We asked the city for a pay subsidy and therefore, as soon as we arrive, and I am sure it will, we will start again. These are people who have been working with me for some time and I think everyone people are on board trying to cope, “he said.

“The most important thing is that there is a wage subsidy that the city is acting quickly, so it’s just a decision to try to keep some cash flow because the only thing that will keep a business afloat is to have some sort of cash flow. But health insurance, I pay it in full. I would never take that out at this point, “added Bradbury.

The COVID-19 crisis, which adds to the loss of Outdoor Voices as a client after its founder and CEO, Tyler Haney, was kicked out, made him think about the fact that everything is not under his control. control.

“I thought we could control our customers by just doing the best job possible and one thing I realized a few months ago is that our good work is no longer enough. There are other factors that will make these decisions for us, which is a tough place to live, “he told WWD.

It’s a similar story in many other communications companies in Manhattan. In a statement, Linda Gaunt, founder and president of Linda Gaunt Communications, said “these are unprecedented times and we all have to make tough decisions.” In the case of her business, due to a loss of business, she was forced to rationalize and cut a few positions. “Having said that, keeping our team in place is our top priority, not only because they are our greatest asset, but because customers have expressed that they need our expertise and our partnership more than ever,” she said. “We are working to rethink strategies, we support e-commerce and we are making our brands part of the conversation.”

Vanessa von Bismarck, partner at BPCM, told WWD that like most of its industry peers, the company “unfortunately had to make a few layoffs, especially in our fashion department.” Its beauty, sustainability, travel, wine and spirits, influencers and cannabis divisions continue to grow.

“What we are focusing on now is helping our customers grow their businesses in an even more creative way that reflects these extraordinary times,” she said. “We firmly believe that the fashion industry now has a chance to rebuild itself through sustainable innovation and technology. BPCM works with NGOs and technologies on the means of perpetuating the fashion industry so that instead of returning to “business as usual”, we are advancing in a sector designed for the future of a globalized world. “

As for KCD, whose customer portfolio over the years reads like a “who’s who” in the fashion industry, including names such as Tom Ford and Alexander McQueen, general manager Rachna Shah, said that ‘he’ is currently assessing the constantly changing situation and have made no decisions in terms of the number of people. “

In Paris, the French PR Lucien Pagès has not yet laid off anyone. He said 15 staff are temporarily unemployed, 12 are working part-time and four people are working full-time remotely.

“We have had many events canceled or postponed, which represents a significant loss of revenue; contracts about to be signed and postponed; customers who will not be able to meet payments for a while, but fortunately very few who have suspended their contracts with us, ”said Pagès.

“However, we work very hard: conference calls and Zoom meetings every day with the team and the clients. Our business is different but just as intense. People need information and advice. is completely stopped, this is a sample of traffic. No filming is taking place at the moment, and brands cannot even shoot a product for their e-commerce sites, “he said.

For the moment, Pagès – whose clients are Jacquemus, JW Anderson, Paco Rabanne and Schiaparelli – recommends that its clients focus their communication on the here and now.

“Now is not the time to talk about the consequences,” he said. “Many articles focus on what happens during confinement, and our designers are in high demand. People need to share now, and if done with intelligence and respect, my recommendation is that brands participate. “

Flavie Costamagna, whose Magna Presse agency handles fashion and lifestyle brands, said she had made her entire team part-time.

“The digital teams still have a little work, the print teams are less,” she said. “My goal is to keep everyone at work, but I will have a clearer picture in April because there are a lot of clients who take a break because they no longer have a business.”

While his restaurant customers, like chef Jean-François Piège, have been forced to suspend their activities, Costamagna is looking for ways to help brands like L / Uniform keep their e-commerce sites alive. The brand recently promoted a cork-covered yoga mat to promote exercise at home, although it did not use the term “coronavirus” in the press release.

“We are trying to find the right tone,” said Costamagna. “It’s hard not to answer it, and it’s hard to tackle it. You have to sort of find a golden medium, which is very difficult.”

She predicted a return to tailor-made communication strategies adapted to the specific circumstances of each client. “We are adapting to demand,” said Costamagna. “We sail without instruments, and we are all in the same boat.”

In London, Julietta Dexter, founder and managing director of The Communications Store, is trying not to let any of the staff leave for now. Instead, 22 senior executives of the 170-person company, which has offices in New York and L.A., took a pay cut to manage. For the month of April, there will be a drop in wages throughout the company.

“This is a very interesting period for me personally because when I started the company 25 years ago, I created it on the basis of a very specific set of values ​​because I had trouble to work and these values ​​were a passion for care, strength and wisdom and this is truly the foundation of our business and frankly of my business leadership for a quarter of a century. These times of crisis are really immersing you in your values ​​tremendously, ”she said.