The classic Aesop Fable of “The Ant and The Grasshopper” is about being prepared while the other played. Looking over the recent headlines, many have lived with the mentality of the Grasshopper. A complete lack of long term preparation for the winter. After only 30 days in lockdown many companies and brands have run out cash.
Publisher Conde Nast announced cut backs, salary cuts, and furloughs for employees. The company will request aid from governments of several countries. CEO Roger Lynch’s letter to employees states “financial pressures” with an “altered trajectory”. Advertisement buys have tried up. Titles Vogue, Vanity Fair, Details struggle in free fall as riders desert print magazines. Before the Coronavirus publishing houses were in trouble, a failing business model in the Digital Age. Will any magazines recover from the shutdown? Certainly many will disappear, fewer editions. I buy Vogue, however, I get the feeling the world will not be so aspirational desiring to wear latest Balmain look.
Today Victoria Beckham announced her fashion house will furlough all employees while applying for government aid! The UK taxpayer picks up 80% of her furloughed employees salaries. A smart and legal business move, but a bit galling. A few days ago the former Posh Spice and husband purchased a $20 million apartment in Miami.
I was thought to save for bad times. Keep 6 months saved up for a raining day. A Good Business practice, set aside money for a downturn. “Living The Best Years of My Life” translates “Live Now” because the Good Times last for ever. Live lavishly, display it all on social media.
Vicky carrying one of her many Birkin Bags. In February Vogue Editors stayed in Presidential Suites while attending Fashion Weeks. Reconciling this past lifestyle, suddenly asking for money.
When this pandemic comes to an end. The world will be a different place. One where “REALITY” is real.