Some of the world's finest designer brands in the beauty and consumer retail sectors are donating sizeable funds to Chinese charities and local organizations to help combat the novel coronavirus epidemic.
LVMH, the world's largest luxury products group and the parent of Louis Vuitton and Dior, has reportedly donated 16 million yuan ($2.3 million) to the Chinese Red Cross for medical supplies.
French luxury group Kering, the parent of Gucci and Balenciaga, has reportedly donated over $1 million to the Red Cross of Hubei province, while Austrian jewelry retailer Swarovski has contributed about $430,000 to support China, according to fashion journal WWD.
In the past few years, such companies have seen most of their sales coming from China where the purchasing power of China's affluent upper-and middle-income segments of the population has been growing.
The China unit of L'Oreal Group, the largest beauty products group globally, has donated 5 million yuan to the Chinese Red Cross Foundation for purchasing urgent medical supplies like face masks, protective eyewear and clothing, the company said.
"Few countries with such a strong government can make so many decisive and progressive efforts in such a short time, pulling wisdom and strength from all over the country to protect its citizens worldwide," said Fabrice Megarbane, president and CEO of L'Oreal China.
"Nowhere else in the world people can see a makeshift hospital established from scratch in just 10 days," Megarbane said.
China is now the second-largest market for L'Oreal. With 25 brands, it has been one of the largest players in the country's beauty products market.
China accounted for 6 percent of all revenue for S&P 500 companies in the past year, nearly double any other country besides the United States, according to FactSet.
