As industries navigate and adjust to the effects and market repercussions of COVID-19, companies are responding in their own way—some are falling apart, while others are pivoting their strategies. Pascal Mouawad explains how the world-renowned luxury jewelry empire is handling the crisis and shares a hopeful silver lining to the situation.

 Q: While the accumulation of traditional luxury items is often cut down during recessions, your company has the advantage of gold—a “hard money” often turned to during times of economic stress—and precious jewels in its asset arsenal. How has the crisis played out for Mouawad’s business?

A: Typically, during times of an economic crisis, investors flock to gold and its price goes up. Mouawad is fortunate to have an inventory of gold, diamonds and gemstones. Even though the prices of diamonds and gemstones have gone down during this pandemic, we feel confident that they will rebound once we reach normalcy. We are fortunate to have our inventory in an asset class that does not have a long-term impact on prices during a short-term crisis. 

 Q: In your own opinion, is this the time to acquire “investment pieces” that hold their value over time, in spite of economic or political uncertainties?

A: It is always a good time to buy when prices are down. As the saying goes, “cash is king when times are tough.” In the past 60 years, we have created a lot of value for our company by investing in rare gemstones during down markets—the same principles apply to the real estate industry. Investors make money when they buy at the bottom of the wave.

 Q: Are you using this “pause” in the consumer-based and luxury lifestyle industry to reframe anything in your business? Or if you’re having a different experience, please elaborate.

A: No, we are continuing with our core strategy, all while respecting the various restrictions in the countries we operate in, prioritizing the health of our employees and clientele, and keeping a close eye on how things develop worldwide. Generally, our focus is on ‘crafting the extraordinary,’ which by nature means our core clientele are not the typical luxury consumer—rather, they have the means and appetite to acquire truly extraordinary pieces, even in times of uncertainty. Our business is therefore about quality over quantity, and relatively immune to general trends in the luxury consumer industry. However, since some boutiques have closed we are working to ensure that our clientele can still engage with us, book private appointments, and acquire items while respecting social distancing measures. 

 Q: Besides your incredible designs, superior quality, and innovative partnerships, what core value do you believe has led to the company being so highly regarded today?

A: Sustainability has been an integral part of our strategy for many years now, and this is a key element that underpins the robustness of any business. Not only have we focused on our own sustainability—through our vertical integration and through our De Beers Sightholder designation giving us access to conflict-free diamonds in the rough—but we have also broadened this to creating sustainable futures for others too, with the launch of the Mouawad Diamond Impact Fund (MDIF) last year. This is a permanent, philanthropic initiative that seeks to make a positive impact on the world through education and skills development among disadvantaged communities.

  Q: That’s incredible. Are you using this time to adjust and PR moves or to create new influencer/celebrity partnerships and collaborations?

A: We see this as a time to engage with our audience more than ever, and to reinforce the message of the power of unity. The Mouawad Miss Universe Power of Unity crown made its debut last year, when Zozibini Tunzi of South Africa was crowned Miss Universe 2019, in December. This unique piece was inspired by the Miss Universe Organization’s values, such as the bonds that tie communities together and make them strong, the powerful role women play in society, and the force for good that is created when we all unite. These values are now extremely relevant to the current pandemic and the world’s future, and we want to make sure that we highlight the positive side of the human spirit and encourage everyone to inspire one another and support one another through this. In addition, in collaboration with MDIF, we are hoping to highlight more of the work of Miss Universe contestants in their own countries, and to bring to light how they are making a difference, and how we can all make a difference, through the power of unity.