According to a Bain & Company report, 2024 was the first year of decline in luxury sales since the financial crisis in 2008.
Former LVMH chair of North America Pauline Brown joined Catalysts hosts Julie Hyman and Madison Mills to reflect on the luxury sector’s biggest challenges in 2024 and discuss whether those losses could continue into 2025.
Brown highlights the slowdown in China as a major issue, as it notably marks the end of the market’s rapid growth seen in the last decade. “The issues within the sector go much deeper than China, and I think some of them are not being talked about enough,” Brown says. “If you look at most of the brands … most dramatically seen with Chanel, but also with certain items from Prada, from Dior, from many of the big nameplates, the price on their handbags and their shoes has gone up anywhere from 75 to 100% on the same items just in the last five years.” She notes that this was “not inflation driven.”
Brown also points to a few standout brands, like Hermés and Ralph Lauren, that are still thriving despite these broader industry struggles.
#luxury #china #yahoofinance
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39 Comments
This is awesome news! Greedy fashion houses raised their prices so high now they are suffering their bottom lines. Who would pay $1000 for a sweatshirt? Only dumb people really.
Yes…the price hikes along with the down grade in quality is a major factor for me which has contributed to me buying second hand bags from a few platforms. I also started buying a few mid range bags that deliver the same quality as my high end lux bags…..not a big difference in quality from what I can see.
I do not see the luxury brands being able to turn things around because these brands are mostly owned by a couple of big conglomerates like LVMH and Kering….so I do not see quality getting better because of the stock prices and the drive to increase profits every year.
Same as Skincare like La Mer. Consumer now have woken up.
People are waking up to the shallowness of these overpriced "luxury" schlock.. Buy quality NOT brands/labels..
When people are saying xbagy ’s bag is a better option,I very much agree!
贪官不敢乱消费包养外围了
Thailand has great replicas
Its because of those unnecessary lines infront of those stores that people dont wanna wait for no reason
The emptiness of vanity
I dont know whats your agenda to the luxury brands.
My personal goal to align luxury brands reflect on freedom of pricing
Most people see luxury products as waste of money, some people compare manufacturing cost vs selling price with tremendous mark up as greedy, ridiculous
In actual fact, The operating costs incurred for luxury brands are much higher, and it drives strong demand for many "talents with niched functionality" that most manufacturers may not consider to invest
Luxury brands are not just a product, but supply chain to generate many niche skilled talents, high paying jobs and opportunities to work on the same difficult task "how to make these products with freedom of pricing",
and it nicely justify "sustainability as least materials to generate maximum profits and long durability"
I am not asking people to really exhaust your money and saving to buy many to support it, but prioritize to own it when you need and can afford it"
Am i AI again for this piece of contents?
I don’t go for name brand because it is tooo expensive for ordinary person. I could buy pants for $5 and it is as good as the name brand. When I wear a name brand I won’t be richer or a cheap clothing be more poorer. The name brands need to come down before I buy again. I am in my 50s I rather go for experience. For hotel, I would go for cheaper hotel. I am there for siteseeing and not to relax at the hotel.
No quality high price.
Luxury goods are a scam
Brillant
By buying the really old , LV or Chanel ,gucci is not to enrich the new owners, ceos. Yes lets do that.
I’ve stopped buying luxury for the past year. I’m fine spending more for a quality luxury product. However, luxury clothing, handbags, shoes, etc. have gone up astronomically in price while quality has diminished. I’m not going to overpay for a logo. With the Dior sweatshop scandal, which probably isn’t the only fashion house doing it, I’m not going to participate in condoning that activity. The Balenciaga ad campaign was offensive. Louis Vuitton is garbage quality compared to bags from 15 years ago. I like nice things but I’m not going to light money on fire poor quality.
It’s almost 2025, are adults still so childish buying luxury to show off? Grow up kids.
they thought they can just increase the price forever
I thought Koreans are the highest spender on the luxury goods?
Because times are harder and you would be better off investing that money in something else. Early last year, I wanted to get a Hermes bag for almost 25k, was convinced by a friend to get a decent F.A and invest it instead and now it's almost double. Don't blame China, blame common sense.
The main reporter should reconsider the top she’s wearing.
Have a €5000 bag and feel safe on today’s streets?
It’s not worth it’s not Worth It !,,
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I'm just realised who's going to take all my luxuries shopping from me for free ???🤔
Coach is re-surging again past few years. Tons of authentic second hand (LV, Dior, Chanel, even Hermes) flooding ebay and Japan thrift stores for under $1,000
I enjoyed this interview
THINK LUXURY of free time from spending useless items
LVMH is also guilty of exorbitant price increases and a degradation of product quality. Why does she just call out Chanel? Maybe it’s because she owns stock in LVMH, still has close ties there and wants to promote the company to help her financial position. She speaks positively of Hermes of which LVMH owns 6% via secret purchase of Hermes heirs’ stock. Yahoo Finance should add disclaimers in interviews like this so that it’s clear we are being fed “news” through a heavy filter.
Just buy a high quality LV bag reproduction for $200 from China ….
Greedy is the second name of Design fashion hauses – and stupidity is the second name of people who still pay for a bag 10 000 Usd
Obviously inflation and incomes not keeping up are a huge factor but also like what they said the quality just is not there for many of these brands anymore. A lot of luxury houses aren’t privately or family owned anymore, they’re under big conglomerates and are being designed and made in the same factories as everyday brands and most of these brands are still living off history instead of innovating with new and fresh designs
Buying and acquiring is overrated. Collect experiences, not tangible clutter.
I feel like not just luxury items are low quality with high prices.. even company like nike is the same price even tho the pricing isn't as much as the luxury, their quality are so poor with the retail pricing are always going up over the years
It doesn't matter where they are made. It depends on artisans and quality inspection. My family and I have bought 2 amzrepe bags in the past 3 years and I'm sure you won't be disappointed!
For rich people, no one would suspect that their bags are amzrepe imitation bags, they invest their money in jewelry and business.
Ms Brown reminds me of the Miranda Priestly character. Well, not her attitude as she seems lovely, but definitely how physically the character was played by Meryl Streep.
The prices hikes on bags that were almost $1,000 cheaper a few years ago is definitely many peoples hesitation to purchase these days. Because what changed? Just the company looking to increase their profit margins