Dear team,

First of all, there can be no doubt that we are living through a dramatic, unsettling and unique moment in time. Over three months have gone by since we first heard the news from China about an alarming situation which we watched in astonishment from a distance. Today we are in a completely different phase.

A large part of the world is now entering into a new phase. The moment has come for us to prepare for an easing of confinement, something we have been looking forward to for some time now, but which brings with it a new uncertainty.

A lot has changed since the first hospitalizations of patients for a virus that, although apparently of a known type, proved equally puzzling for scientists and health workers alike. The advances towards effective and safe treatments are increasingly closer, and there are many candidates already under test for the much-hoped for vaccine.

Meanwhile, we have all learned that we have to protect ourselves more than ever and also protect others with measures that up until now we had not internalized in our everyday routines and habits, but which we know we will have to maintain for some time into the future.

On a more positive note, we are pleased to be able to share with you the news that to date there have been no confirmed cases in our staff, nor do we know of any serious situation among the immediate family of our employees. If is a great relief and long may it last. Now we are all keenly aware of the need to look after ourselves and others, and so we are confident, that if all we do our bit, that the gradual return to the workplace will be as safe as possible.

Since the beginning of the pandemic, Lladró introduced safety and information measures to ensure the wellbeing of our teams. This included encouraging homeworking whenever possible, implementing shifts in different departments, maintaining safe distancing and the distribution of masks to all production employees. We continue working to adapt to the new needs that may arise as the pandemic evolves. The safety of our staff is our priority.

Lladró boutiques and retailers around the world have closed over the last few months, albeit at different moments. This has been a tough blow, as it is the motor that drives our business. 

Despite the setbacks, we have been working hard to support our wholesale clients and to generate sales through special programs that could benefit both parties and mitigate losses as far as possible. We have been in permanent communication with our end customers by email and on social media, adapting our tone to the current situation.

We have also taken great efforts to keep our online business alive. We have invested all available resources to make the most of digital tools. This has allowed us to maintain and even exceed sales targets for this channel.

We are pleased to be able to give you good news on our advances in China, one of the territories with the greatest potential for growth, where we are taking great pains to make inroads. In recent months, we have signed an agreement with two major new wholesale clients and we have also opened a Lladró Boutique, a one-year pop up store in the city of Chengdu, thanks to a Chinese partner. On the other hand, we have launched our own e-boutique within the Chinese e-commerce giants, Tmall and JD.com, and we have activated brand platforms in the country’s main social media, Weibo and WeChat. A big push forward that we trust will help us to generate sales and new opportunities in this territory.

Pop up Chengdu

However, we are still a long way from offsetting the damage done in terms of loss of sales in recent months. In addition, due to restrictions in movement and the need for social distancing that will foreseeably remain in place throughout the rest of the year, we expect our results will remain less than required to balance costs of production, distribution and commercialization at full capacity.

This is the reason for the tough containment measures that directly affect our work situation. We know that it requires a great effort from you, and is particularly difficult in certain circumstances, but we ask you for your patience, understanding and trust. Patience to get through months of reduced activity. Understanding to accept that it is the only possible measure to guarantee our future survival. Trust in that, all together and with our concerted efforts, we will manage to weather this storm.

Our Boutiques in Spain are now open by appointment and we hope, if the situation permitting and if there are no setbacks, that they will all be able to reopen again soon. To ensure the safety of all our team, and also our customers, we have prepared a protocol for our boutiques that we must follow strictly. The gradual reopenings will undoubtedly be a breath of fresh air for our business, although in all probability at a much slower pace than we would like.

Despite the setbacks, you have always maintained the passion for your work. We urge you to keep up this energy in your day-to-day work because, no matter how small our individual contribution may be, therein lies the guarantee of our success as a team.

We still have a lot of porcelain art to offer and, between us all, we will manage to pull through.

Ana Rodríguez

Chief Excutive Officer