Impact on Luxury Goods Market

Fantastic report! The 2025 report "Luxury in Transition: Securing Future Growth" on enduring growth in luxury in 2025 which is dependent more and more on quality, sustainability, craftsmanship and long-term value. Key insights: →After a 2% contraction in 2024—the first in over a decade—both brands and consumers are being challenged to rethink what luxury means in a world that demands responsibility. →Sustainability is an economic lever: As Bain states, decarbonisation is not a cost burden—it’s an investment in resilience. Brands that lead in carbon reduction are already seeing benefits in consumer trust, operational efficiency, and premium positioning. →Craftsmanship underpins long-term value: In a saturated market, the luxury that lasts—through superior materials, artisan techniques, and timeless design—is what retains customer loyalty and brand equity. →Circularity is good business: Business models that include resale, repair, and rental are gaining traction. These not only extend product life and reduce waste, but also deepen engagement and open new revenue channels. →Generational shift is reshaping demand: With Gen Z and Millennials now driving over 70% of luxury growth, their values—authenticity, transparency, and environmental responsibility—are reshaping the sector. →Geographic rebalancing opens new opportunities: As 50 million consumers exit mature markets, growth is accelerating in Southeast Asia, India, and Latin America—regions where sustainable luxury holds distinct appeal. Additional highlights: Decarbonisation is emerging as a financially sound strategy for fashion brands. Research indicates that most fashion companies can reduce their greenhouse gas emissions by over 60% at a cost of less than 1–2% of their revenues, making significant environmental impact achievable with modest investment. According to another report, companies leading on climate action, including fashion brands, reported financial gains equivalent to over 7% of annual revenues, driven by operational efficiency, product innovation, and increased customer loyalty. The economic case is clear: investing in sustainability—especially through decarbonisation and long-lasting craftsmanship—is not only a moral imperative, but a commercial strategy for long-term success. Report: Bain & Company / Data sources: McKinsey & Company, Boston Consulting Group (BCG) #sustainableluxury #decarbonisation #craftsmanship #longtermvalue #luxurystrategy #circularbusiness #esg #bainreport #futureofluxury

Luxury watches are not slowing down. They are being forced to evolve. Luxurynsight's latest report shows a category under pressure: Swiss watch exports fell -1.7% YoY to CHF 25.6B, with China down -12.1%. And yet, growth is not gone — it is shifting. India rose +8.1% and the UAE +3.5%. → The market is weaker. ↳ But the real story is redistribution. Then comes pricing. → Gold surged +65%. → Average retail prices increased +6.3% between 2024 and 2025. → The sector is absorbing a -13% USD/CHF move and 39% US tariffs on Swiss exports. → This is not normal inflation. ↳ It is structural pressure. Which is why the most interesting shifts are strategic: Brands are rethinking leadership. They are moving into fiction, streaming and gaming. And boutiques are turning into experience-led destinations instead of pure retail spaces. Luxury watchmaking is no longer competing on heritage alone. It is now competing on three fronts: → pricing power → cultural relevance → experiential retail The brands that can balance all three will define the next phase of the category. Link to the full report in the comments.

📗 // When reading H1 2025 earnings of LVMH and others it became clear that "luxury" is at a crossroads.. I analyzed 19 reports to share my findings with you 👇 The market is facing its "biggest potential setbacks" in +15 years.. Last week I shared Part 1, and the response was immense. So here's Part 2: 1️⃣ Emotional purchases > functional luxury in uncertain times. → Richemont: Q1 revenue +6% to €5.41bio = specialized portfolios perform well in turbulent markets ↳ 💍 Jewelry +11% / Cartier +35% in value = true luxury experiences continue to find customers, regardless of economy ↳ ⌚️ Watches -7% / reflects broader challenges for Swiss watchmakers (& US tariffs won't help) + watches started losing investment appeal with secondary market prices falling up to 40% 💡 Paradox: the more turbulent the market, the more emotional luxury consumers get in spending. They don't stop buying.. 2️⃣ The Chinese are buying, but not at home. → -22% decline in H1 2025 = the end of luxury's most important growth engine of the last 20 years → Demographic divide: ↳ +40y: -10% of luxe spending ↳ -35y: -35% = young consumers don't view luxe spending as aspirational + Western brands are not the symbols of "success" anymore. 💡 The Chinese are seeking authenticity > status signaling... CULTURAL RESONANCE will be key the next decade! → Chinese tourism boosts foreign markets: ↳ 🇭🇰 HK: +8% luxury retail ↳ 🇯🇵 JP: +15% from Chinese tourists = spending didn't disappear, it relocated where Chinese are more comfortable with luxury consumption 3️⃣ India, a new market for (accessible) luxury? → Titan Company Limited: +18% jewelry / 49% international growth → kalyan jewellers: +31% / Candere By Kalyan Jewellers e-commerce up 67% 💡 Important for the next 10y: young demographic + increasingly growing market for accessible luxury ($200-$2000 price point) + rising disposable income + Indian diaspora in developing countries YET cultural resonance is more important than prestige positioning! 4️⃣ A massive shift from Wholesale to Experiential D2C is happening. 🟢 Companies with strong D2C are thriving (Richemont 69% D2C, Hermès, Tiffany & Co.) 🟡 Those transitioning are seeing profit improvements (SMCP – Sandro, Maje, Claudie Pierlot, Fursac) 🔴 Those depending on wholesale are struggling (FERRAGAMO, Zegna) ↳ Ferragamo Q2 wholesale decline exceeded 30% = not a shift, but a collapse! 💡 We'll see more focus on own experiential D2C, and less wholesale partners (fewer, most profitable ones). Consumers buy experiences, not products! Own operations = control over the full customer experience. 5️⃣ Middle market squeezed out. → Accessible luxury struggles: Burberry -6% → Fast fashion & ultra luxury WIN! 💡 The middle ground is disappearing. Consumers either trade up, or down to fast fashion... / LAST PART COMING NEXT WEEK / 💬 Comment "LUXE" and I will DM you the earnings cheat sheet, including links to all earnings & press releases.

The modern luxury industry did not see this coming. The secondhand market rewrote the rules, and it's time for brands to recognize the cold, hard facts. "In 2024, it hit an estimated €48 billion, growing 7% year over year — actually outpacing the sales of new luxury goods. That's not a small trend; that’s a full-on shift." Source: Bain and Co Hard luxury (meaning watches and jewelry) continues to dominate, making up about 80–85% of total second-hand sales. Jewelry is exploding, but even secondhand apparel is picking up speed. Secondhand has become the gateway into luxury for new, aspirational buyers. When their dream product feels out of reach at retail, resale offers the perfect, accessible alternative, and not just for budget reasons. Brands are catching on. Instead of fighting it, some brands are launching their own platforms and rethinking their brand as an ecosystem rather than a single sale. I truly believe the brands that master resale, authentication, and inventory control will be the ones who build deeper, longer-lasting customer relationships. The future of luxury isn’t just about selling new, it’s about engineering value across a product’s entire lifetime.

When LVMH's Chairman Goes Shopping for Chinese Brands, You Know Something Has Shifted According to the Japanese Times, Bernard Arnault, one of the world's richest men and chairman of LVMH went to Shanghai in September. Everyone expected him to visit LVMH, Christian Dior Couture, and his empire's boutiques in China's most prestigious malls. Instead, he went shopping for Chinese brands. He bought two handbags at Songmont, a minimalist leather goods label. He spent half an hour at Laopu Gold, a homegrown jeweller positioned a few doors from Cartier and Van Cleef & Arpels, reportedly muttering words like "exquisite" and "interesting." Here's Why That Matters: China's $49 billion luxury market is fundamentally changing. While LVMH is down 30% from its 2023 peak and Kering has plunged 60% since 2021, Chinese luxury brands are exploding. Laopu Gold's e-commerce sales are up 1,000%+ in the last two years Songmont's online bag sales are up 90% Meanwhile, Gucci's online bag sales in China, down 50%+ But here's what most analysts are missing. This isn't just about pricing. Yes, Songmont's bags sell for $421 vs. Hermès' $8,016. But Chinese consumers aren't just choosing cheaper, they're choosing culturally relevant. As Jacques Roizen from Digital Luxury Group said: "Chinese beauty brands aren't competing on price, they're building rich brand universes and prioritising storytelling." I Wrote About This Exact Shift in The Luxpreneur. Luxury isn't one dimensional. What signals status, aspiration, and belonging shifts dramatically across cultures. Western luxury brands assumed Chinese consumers would forever chase European logos as tickets to sophistication. They were wrong. Modern Chinese shoppers as well as shoppers from other cultures want brands that reflect their identity, not someone else's definition of prestige. This is what Diversity in Luxury Actually Looks Like. Not just diverse faces in campaigns. Diverse definitions of luxury itself. Chinese brands defining luxury through their cultural lens. Middle Eastern luxury buyers seeking brands that understand their values. African aesthetics informing design, not just "inspiring" European collections. When Bernard Arnault spends half an hour in a Chinese jewellery store, he's not being polite. He's watching the future and it doesn't all speak French. The Question is are we watching a temporary slump, or the beginning of a truly multipolar luxury landscape where cultural authenticity beats European heritage? #LuxuryBranding #TheLuxpreneur #DiversityInLuxury #ChinaLuxury #LVMH #CulturalRelevance #LuxuryStrategy

Luxury brands are increasingly relying on U.S. consumers to drive growth, especially as the Chinese market faces economic challenges. LVMH, the €350 billion industry leader owning brands like Dior and Louis Vuitton, has significant exposure to the U.S. market. Swiss luxury group Richemont reported a 22% growth in U.S. sales, boosting global sales by 10% and surpassing expectations. Despite high prices and interest rates, U.S. consumers have shown resilience, maintaining robust spending levels. In November 2024, retail sales surged more than anticipated, driven by strong motor vehicle and online purchases. The U.S. economy expanded at a 2.8% annual rate in the third quarter, supported by strong consumer spending. Analysts remain cautiously optimistic, noting that while the U.S. market presents significant opportunities, luxury brands must innovate and adapt to sustain growth amid evolving consumer behaviors and economic conditions. In this context, the new report “Evolve or Fade Away: Enriching Luxury Heritage in the AI Era,” a collaboration between IBM and Vogue Business, highlights how luxury brands can leverage AI to remain competitive. From AI-driven personalisation and sustainability initiatives to operational excellence, the report explores how technology can help luxury brands blend heritage with innovation. Released during the National Retail Federation and previewed in a fireside chat with Vogue Business US Editor Hilary Milnes, the report underscores the importance of embracing AI to enhance the artistry, exclusivity, and legacy of luxury brands. As the industry evolves, such strategies will be crucial to navigating a rapidly changing, increasingly digital market. #EvolveOrFade #AI #LuxuryInnovation #Sustainability

Luxury is Losing Its Edge to Modern Consumers: Jewelry & High-End Brands Wake Up! The Market Has Shifted - Digital is the Gateway to Growth. Luxury brands built their success on exclusivity, in-store experiences, and heritage. But the landscape has changed. Digital is now the front door to luxury, and many brands are still failing to adapt. Before the pandemic, steady 2% growth was the norm. Post-pandemic, brands that pivoted to digital-first strategies are seeing double digit+ growth, while others are struggling to stay relevant. The problem isn’t demand—it’s approach. Why Luxury Brands Are Falling Behind? Retail alone is no longer enough. Customers expect a seamless experience across digital and physical touch points, yet many brands still treat their websites as secondary to brick-and-mortar. They rely on in-store service while competitors use AI-driven personalization to engage buyers before they ever step into a store. Marketing budgets are skyrocketing, but conversions aren’t keeping pace. Brands pour money into ads, influencers, and SEO, yet they fail to convert at the rates they once did. The market is oversaturated, targeting is inefficient, and without AI-powered customer insights, brands are spending more for diminishing returns. Customer loyalty is fading. Heritage and prestige are no longer enough to keep buyers engaged. Today’s luxury consumer expects exclusivity beyond the product—curated experiences, tailored recommendations, and real connection. Without AI-driven CRM systems that personalize every interaction, brands risk becoming interchangeable. What Luxury Brands Must Do Now? Make digital an extension of the luxury experience. Virtual styling, AI-driven concierge support, and predictive personalization need to be standard, not optional. Customers should feel valued the moment they land on a website, not just when they walk into a boutique. Rethink customer acquisition and retention. AI-powered analytics can segment buyers with precision, ensuring that marketing efforts reach high-intent customers, not just broad audiences. A well-targeted customer is far more valuable than a million passive impressions. Redefine loyalty. The future of luxury isn’t about one-time purchases. It’s about data-driven engagement that keeps high-value customers coming back. Exclusive events, early access, and intelligent CRM strategies create brand relationships that last beyond the first transaction. Luxury brands that treat digital as secondary will fall behind. The future belongs to those that use AI to create an ecosystem where customers feel valued, engaged, and understood—wherever they choose to buy. The question isn’t if luxury & jewelry will evolve—it’s whether your brand will emerge as a leader or fade into the past. Photo: courtesy of LUXURYSOCIETY #LuxuryEcommerce #AIinLuxury #DigitalTransformation #LuxuryStrategy #jewelry #diamonds #gemstones

As luxury and consumer brand enter 2025, still sweating the challenges in their core markets, one region offers the biggest opportunity. India. In 1998, I spent a year working in Bangalore for Van Heusen , and at the time was surprised at how westernised the market was, even then. adidas, Nike, Lacoste had already opened stores and the fast-food brands such as KFC were evolving the local food scene away from traditional Indian tastes. That was nearly 30 years ago, but India has still not developed at the same rate as other regions. However, there feels a priority of acceleration now as brands realise China is a longer-term issue than expected and there is a need to offset the significant losses in revenue. The growth of fashion and luxury brands in India can be attributed to several factors, both economic and cultural. With rising disposable incomes, and an increasing appetite for global labels, it presents an attractive market for European companies. But progress has been underwhelming; Louis Vuitton only have six stores there and other luxury houses are no bigger – Gucci (4), Saint Laurent (2), Hermès (2). However, things are now moving; There is an increase of tier-1 luxury real estate –The Chanakya Mall and the DLF Emporio in New Delhi are the best examples, but many more are opening. But critically, India's e-commerce market, which had been slow to scale, is now on a rapid growth trajectory, with revenue forecasted to skyrocket from $60bn to $300bn by 2030. And just like China, fifteen years ago, it is not just HWI’s fueling growth. The rise of aspirational shoppers is very significant, particularly in tier-2 and tier-3 cities, giving consumers access to luxury products online. India’s infrastructure meant it took time for e-com to catch fire, however, now the switch has been flicked, it will unlock the huge potential in the region. Luxury e-com platform, Tata CLiQ Luxury luxury now generates 55% of its sales from outside of Tier-one cities and Gen-Z and Gen-Alpha are their fastest growing demographics. Gopal Asthana, CEO said, “These consumers have propelled big jumps in the sales of beauty, accessories, apparel and footwear, and their order value is comparable to those of metro consumers.” Anurag Mathur partner at Bain & Company, recently told The Times Of India, "In terms of the depth of luxury buying, India is still more than a decade behind China but the reconstitution of consumption happening in China and the rising population of HNWI's in India have definitely piqued brands' interest to pursue India in a big way." There are cycles in every economy. But the Indian market is growing and there is huge runway for growth with a consumer who is savvier than ever. Like China, brands need to choose their partners carefully and recognise that success needs a long-term investment and there is no magic wand of growth. But Like China, the rewards in India will be huge for those who get it right. DHR Global #india #luxurygoods

🚨 𝗧𝗵𝗲 𝗹𝘂𝘅𝘂𝗿𝘆 𝗺𝗮𝗿𝗸𝗲𝘁 𝗶𝘀 𝗰𝘂𝗿𝗿𝗲𝗻𝘁𝗹𝘆 𝗲𝘅𝗽𝗲𝗿𝗶𝗲𝗻𝗰𝗶𝗻𝗴 𝗮 𝗱𝗼𝘄𝗻𝘁𝘂𝗿𝗻, 𝗽𝗿𝗼𝗺𝗽𝘁𝗶𝗻𝗴 𝗺𝗮𝗷𝗼𝗿 𝗹𝗲𝗮𝗱𝗲𝗿𝘀𝗵𝗶𝗽 𝗰𝗵𝗮𝗻𝗴𝗲𝘀 𝗮𝗰𝗿𝗼𝘀𝘀 𝗶𝗰𝗼𝗻𝗶𝗰 𝗯𝗿𝗮𝗻𝗱𝘀. Fendi recently announced the departure of Kim Jones, its artistic director, after four transformative years. This shift is part of a larger pattern, with high-profile exits at brands like Gucci and CELINE amid significant sales drops. 𝗞𝗲𝘆 𝗳𝗮𝗰𝘁𝗼𝗿𝘀 𝗰𝗼𝗻𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗻𝗴 𝘁𝗼 𝘁𝗵𝗶𝘀 𝗱𝗲𝗰𝗹𝗶𝗻𝗲 𝗶𝗻𝗰𝗹𝘂𝗱𝗲: ✅ 𝗠𝗮𝗿𝗸𝗲𝘁 𝗖𝗼𝗼𝗹𝗶𝗻𝗴: After a period of rapid growth, demand has softened, particularly in China, which accounted for 16% of global luxury spending last year. ✅ 𝗖𝗵𝗮𝗻𝗴𝗶𝗻𝗴 𝗖𝗼𝗻𝘀𝘂𝗺𝗲𝗿 𝗣𝗿𝗲𝗳𝗲𝗿𝗲𝗻𝗰𝗲𝘀: There's a noticeable shift away from extravagant styles to more timeless, classic designs, reflecting current economic sentiments. ✅ 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗣𝗿𝗲𝘀𝘀𝘂𝗿𝗲𝘀: Brands like Gucci reported nearly a 20% drop in sales in the second quarter, affecting parent company Kering’s overall profits. Nguyen Trang, CEO of Le Réussi®, notes, “𝘉𝘳𝘢𝘯𝘥𝘴 𝘢𝘳𝘦 𝘭𝘰𝘰𝘬𝘪𝘯𝘨 𝘧𝘰𝘳 𝘧𝘳𝘦𝘴𝘩 𝘪𝘥𝘦𝘢𝘴 𝘢𝘯𝘥 𝘴𝘵𝘳𝘢𝘵𝘦𝘨𝘪𝘦𝘴 𝘵𝘰 𝘳𝘦𝘷𝘪𝘵𝘢𝘭𝘪𝘻𝘦 𝘨𝘳𝘰𝘸𝘵𝘩.” Experts believe we might be at a temporary low point, as luxury has historically demonstrated resilience during economic challenges. “𝘓𝘶𝘹𝘶𝘳𝘺 𝘪𝘴 𝘦𝘹𝑝𝘦𝘳𝘪𝘦𝘯𝘤𝘪𝘯𝘨 𝘢 𝘵𝘦𝘮𝑝𝘰𝘳𝘢𝘳𝘺 𝘥𝘪𝑝, 𝘯𝘰𝘵 𝘢 𝘭𝘰𝘯𝘨-𝘵𝘦𝘳𝘮 𝘥𝘦𝘤𝘭𝘪𝘯𝘦,” says branding expert David Miskin, indicating potential for recovery. Read More ➡️ https://lnkd.in/g3avWE7n #LuxuryMarket #LeadershipChange #FashionTrends #EconomicShift