The Luxury Cruxx’s Post

The Business of Fashion this has long been an issue. To rememdy there needs to be controlled brand distribution notably through wholesale as well as closing in the premiums between markets, this ensures that it is not attractive for the consumer to buy elsewhere. Clear brand direction and adherence to the strategy is required - it means a period of controlled supply, review of accounts to allow for a limited flow of goods and results in elevated AUR’s and protecting the brand image not only for today but for future growth. A commitment that understanding where your goods are surfacing will drive desirability and longer term brand equity.

Hidden in plain sight is the contraction of the global luxury sector. It's outsized growth due to the China boom from 2000 to 2020 & the cheap money supply are both coming to an end. They enabled a stupendous rise of the sector and gave birth to an era that can termed as “Industrial Luxury" ie. Luxury at scale, an antithesis of sorts. Luxury brands earlier (pre-2000s) used to be family / niche / boutique affairs of merely millions in topline. China's pampering and supply of cheap money "massified luxury" and they became multi-billion dollar businesses. China’s domestic consumption is facing challenges and global money supply is not cheap anymore. Wherever China’s private consumption stabilises from here it will a far cry from the unhinged growth and that enabled the rise of “Industrial Luxury”. Similar argument goes for supply of cheap money and its impact on Luxury. Therefore, Luxury sector is ripe for disruption. New labels, nimbleness, fragmentation, digital makeover and what not. Schumpeter calls it creative destruction. Keep an eye on how Global Luxury reconciles with the emerging new realities. #luxury #globalluxury #luxurybrands Bloomberg #Schumpeter

BREAKING! Deep Discounts: Luxury Brands Respond to Chinese Spending Slowdown. Luxury brands are implementing 50% discounts to counteract the reduction in spending by Chinese consumers. The discounts aim to boost sales amid economic uncertainties and changing consumer behaviors. Brands like LVMH and Richemont are adjusting their strategies to maintain market relevance, leveraging high-stakes markdowns as a strategic tool. This trend reflects a broader shift in luxury consumption patterns in China, with potential long-term impacts on global luxury markets. The effectiveness of these discounts remains under scrutiny as brands balance prestige with accessibility. #LuxuryDiscounts #ChineseMarket #LuxuryStrategy #EconomicImpact #ConsumerTrends #FashionIndustry #MarketShift https://lnkd.in/dw4_urjh

Japan's Luxury Market at a Crossroads: Will It Boom or Bust?   Avery Booker, Jing Daily, LVMH, Kering, Armelle Poulou, Jacques Roizen, Jean Jacques Guiony #LuxuryBrands #JapanMarket #MarketTrends #ConsumerBehavior #LuxuryEconomy #BrandStrategy #RetailTrends #JapanLuxury #MarketDilemma #BusinessInsights

Luxury powerhouses facing pressure In china

It was reported in The Guardian that "last week, shares in Kering, owner of luxury labels including Gucci, Balenciaga, Yves Saint Laurent and Alexander McQueen, hit a seven-year low after reporting that operating income in the second half of the year would be down 30% after a 42% drop in the first half." 💡 Now take this The Business of Fashion article below and imagine how these figures could change if luxury powerhouses took resale in-house... Is this move going to become inevitable for luxury brands? And how could these powerhouses learn from the reseller businesses booming right now? 🤔

“Up to 2020, a significant amount of the consumption of luxury goods took place outside mainland China as Chinese consumers sought a wider product offering and the benefits of tax-free shopping. However, Covid disrupted the model and flow of business and the industry has been awaiting a post-Covid revival.” Tim Jackson, Head of Academic Operations at the British School of Fashion, shares key insights into the luxury market in Asia, as highlighted at the 20th Annual FT Business of Luxury Summit. Read the full feature here: bit.ly/4ct0VSI #LuxuryBriefing #LuxuryMarket #Asia #FTLuxurySummit #BritishSchoolOfFashion #IndustryInsights

If there's one thing we know for certain, retail prices for luxury items will only increase year on year (possibly even multiple times a year as evidenced in recent cycles!). So what does this mean for consumers in the resale market? Check out this latest coverage by The Singapore Business Times where our COO Tresor Anne Tan contributed some insights on the luxury resale landscape. #luxuryfashion #luxuryresale #sustainableconsumption https://lnkd.in/gmWUxMtk

Curious about the road ahead for traditional luxury retailing in China? This in-depth article by Daniela Wei , CFA China Consumer Reporter for Bloomberg News sheds light on changing consumer sentiments and the challenges ahead for luxury brands in China. Changing consumer sentiment, challenges created by economic headwinds, and a shift from conspicuous consumption towards quiet luxury are being solved for in luxury board rooms around the world and in luxury malls across China. From my perspective, I see China's definition of luxury changing every day here in Shanghai. “Investments in self, health and entertainment experiences are where dollars are moving and I don’t see the trend reversing.” I am so curious to observe how luxury's experiential retailing handbook evolves to meet the challenge.

What's New to The Street... 💎 Richemont’s Sales Dip Amid China’s Luxury Woes 🇨🇳✨ Richemont, the luxury powerhouse behind Cartier, reports a 1% drop in second-quarter sales as the ongoing challenges in China continue to impact the luxury market. Despite this, the iconic brand remains a key player in the global luxury scene. What do you think the future holds for luxury brands in China? Share your thoughts below!👇🏻✨ 👉🏻Follow New To The Street for more! #Richemont #Cartier #LuxuryMarket #ChinaEconomy #LuxurySales #MarketTrends #LuxuryIndustry #FashionNews #GlobalBusiness #NewToTheStreet #LuxuryLifestyle #HighEndFashion #Innovation #Businessupdate #Businessnews #Business #News #Newtothestreet