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Earlier this year, I was telling my team that there’s a difference in the luxury brand category. The audience for LVMH is very different for Hermès. It’s loud luxury vs quiet luxury. Brands like LVMH is aimed at the middle class. Whereas Hermés is for the wealthy. As a result, Quiet luxury is in a ‘winners take all’ phase, because the rich just keep getting richer. China, who now make up a large % of luxury consumers, are saving rather than spending because the value of their homes is collapsing due to recent property scandals. And middle-income Americans, who developed a taste for luxury during the pandemic years, have cut back on luxury spending as they have burned through excess savings and now are facing economic uncertainty. #marketing #strategy #branding #luxurybrands #audienceinsights

China's luxury market is booming, yet many brands miss out on huge opportunities. Here’s how to capture this growth: 📈 Missed Revenue: Many brands aren't fully leveraging China’s demand for luxury. Localization and digital strategies are key. ✨ High Demand: Brands like Louis Vuitton, Gucci, Chanel, and designer sunglasses from Ray-Ban, Prada, and Dior thrive by blending heritage with modernity. The Chinese market craves exclusivity and prestige. 🔍 Strategic Moves: 1. Digital Presence: Platforms like WeChat, Xiaohongshu, and Tmall are essential. 2. Cultural Connection: Align with Chinese traditions and events (e.g., Burberry’s successful Lunar New Year campaigns). 3. Sustainability: Brands like Cartier and Tiffany & Co. lead with eco-friendly practices, gaining consumer trust. 📚 Dive deeper: https://lnkd.in/gzeBc6TZ Let’s discuss how to strategically grow in this lucrative market. Share your thoughts below! 💬 #LuxuryMarket #China #BusinessDevelopment #DigitalStrategy #Sustainability

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

🚀 Balancing Exclusivity and Inclusivity in Luxury Retail - Navigating the fine line between luxury and premium brands 🚀 A recent study published in International Journal of Research in Marketing (https://lnkd.in/dfZtrFh7) explores how luxury brands manage exclusivity while adapting to mass-market demands. The study highlights three key strategies: 🔑 Disguise: Hiding market elements under layers of domestic aesthetics (e.g., Audemars Piguet, Balmain) 🏡 🔑 Hybridization: Blending domestic and market cues (e.g., Hermès, Sonia Rykiel) 🎨 🔑 Juxtaposition: Partitioning experiences to maintain exclusivity (e.g., SCHIAPARELLI) 🌟 This balance is increasingly relevant, as e.g. LVMH. ’s recent challenges show. LVMH saw a slight decline in Q3 2024, especially due to weakened demand in China. #Luxury #CustomerExperience #Retail #BrandManagement #Strategy #CommercialExcellence Cite: Debenedetti et al., 2024. Balancing exclusivity and inclusivity through the strategic domestication of the luxury retail experience.

💎 Thailand's Luxury Market Thrives! 💼 . New research by CMMU reveals the growing allure of luxury goods in Thailand. Men lead in luxury consumption, with top brands like Apple, Starbucks, Louis Vuitton, and Dior dominating. The study identifies five luxury behaviors, driven by social acceptance, status, and distinction. CMMU’s ‘LUXE’ strategy targets affluent spenders, with luxury brands amassing 56 million social media engagements from Feb-July. . #LuxuryMarket #ConsumerBehavior #Thailand #CMMU #LuxuryBrands #MarketingStrategy

The luxury market is undergoing a significant transformation towards diversity and inclusion. Recent research shows that the consumer base for luxury goods is more diverse than ever, with a notable increase in luxury consumers of color in various countries. This shift signifies a strategic imperative for luxury brands worldwide. Embracing diversity is no longer just a trend but a crucial step for luxury brands to connect with their evolving customer base. It's not just an opportunity but a necessity for high-end brands to reflect the diversity of their clientele. Let's delve into how this shift can be a strategic move for luxury brands in this new era. The decision to feature diverse models and to create products that cater to a wide array of cultural backgrounds has been well-received. Sales figures from Gucci show an impressive 12% increase in revenue, a testament to the fact that diversity is no longer a luxury but a necessity. #LuxuryMarket #DiversityandInclusion #LuxuryBrands #ConsumerBase #InclusiveMarketing #blackluxuryvip

Is Luxury Dead in China? Or Just Evolving? I recently touched on the challenges facing luxury brands in China. Major players like LVMH, Prada, and Richemont have been hit hard sales in China have plummeted, with some reporting up to a 27% drop. The causes? A mix of low consumer confidence, an economic slowdown, and what some are calling “luxury shame” as consumers pull back on high-profile purchases. But what fascinates me is that Hermès is bucking the trend. Their Birkin bags, still thriving, have become more than just luxury—they are seen as investments, status symbols that retain or even increase in value. As exclusivity becomes more critical than ever, other brands might need to rethink their strategies. What’s really happening? Is this just a reaction to economic conditions, or are we witnessing a deeper cultural shift in how consumers, particularly in China, engage with luxury? The core issue may not be about “luxury” itself but about perceived value. In times of uncertainty, people tend to invest in what is timeless, scarce, and lasting—whether that’s an iconic Birkin or a rare piece of art. Can other luxury brands adopt this strategy, or is Hermès simply playing by different rules? Let’s open the discussion—what does the future hold for luxury in China? #LuxuryIndustry #ChinaMarket #HermesSuccess #LuxuryShame #ConsumerTrends #RetailInnovation

The world's top luxury brands are feeling the impact of China's economic slowdown and crackdown on displays of wealth. LVMH, the largest luxury goods group, reported a 14% drop in sales in Asia, including China. Other brands like Burberry, Swatch, and Richemont also faced significant sales declines. The economic downturn and government actions against flaunting luxury online have contributed to the decrease in consumer spending on high-end goods. This trend is challenging for the luxury sector, which relies heavily on Chinese shoppers. #ThesocialTalks #LuxuryGoods #ChinaEconomy #RetailSales #LVMH #Burberry #Swatch #Richemont #EconomicSlowdown #BusinessNews

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

The luxury goods industry has relied heavily on China, but latest updates suggest that this market is starting to slow. - Overall, major luxury brands have seen a 6% decline in revenues from the region. - Chinese consumers are shifting towards value-oriented luxury purchases, prioritizing items that retain value such as watches and jewelry. - Brands like Versace and Balenciaga are offering discounts of up to 40% on flagship platforms in China, reflecting broader market pressures. - Despite this, high-end brands like Hermès and Louis Vuitton continue to maintain their desirability and exclusivity, targeting high-net-worth clients. Interestingly, the wider Asia-Pacific region, particularly Tokyo and Singapore, is demonstrating resilience, supported by a stable economic environment and robust luxury demand. #LuxuryMarket #China #Asia #ConsumerTrends #LuxuryBrands #Versace #Balenciaga