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Does Luxury Fashion Have a Sustainability Problem? Kering's latest profit warning has sent shockwaves through the industry. The parent company of Gucci, Saint Laurent, and Balenciaga reported a 14% decrease in Gucci sales and a 10.4% decline in overall revenue for the third quarter of 2023. So, what's behind this decline? Weaker demand in the Asia-Pacific region, particularly in China, and difficulties in the wholesale channel. However, it's not all doom and gloom. Gucci's direct-to-consumer sales performed better, and Saint Laurent and Balenciaga posted strong sales growth of 21% and 24%, respectively. Kering's CEO, François-Henri Pinault, remains confident in the company's ability to adapt to the changing market environment and drive long-term growth. But this latest profit warning raises questions about the sustainability of the luxury fashion industry as a whole. What do you think? Is the luxury fashion industry struggling to keep up with changing consumer expectations? Can companies like Kering adapt and thrive in a rapidly changing market? Let's discuss. Share your thoughts in the comments below. #LuxuryFashion #Sustainability #FashionIndustry

The Global Luxury Handbag market size will be USD 23.5 billion in 2023 and will expand at a compound annual growth rate (CAGR) of 8.60% from 2023 to 2030. Read the Full Report: https://lnkd.in/gWmESmAY Key Players of the Luxury Handbag Market : Macy's., MARC JACOBS INTERNATIONAL, L.L.C. , Michael Kors (USA), Inc.), LACOSTE USA, INC, PVH Corp. , MCM WORLDWIDE , Ralph Lauren, Cartier Guccio Gucci S.p.A. , Giorgio Armani, Valentino, Burberry, CHANEL, DOLCE&GABBANA, Prada Group, and Others Delivery Includes:- Market Timeline 2019 till 2031, Market Size, Revenue/Volume Share, Forecast and CAGR, Competitor Analysis, Regional Analysis, Country Analysis, Segment Analysis, Market Trends, Drivers, Opportunities, Restraints, ESG Analysis, Porters Analysis, PESTEL Analysis, Market Attractiveness, Patent Analysis, Technological Trend, SWOT Analysis, COVID-19 Analysis, Consumer Behavior Analysis, etc.   #CompetitiveInsights #Research #MarketingConsultants #MarketReports #DataAnalytics #BusinessConsultant #ConsultingServices #MarketInsights #BusinessIntelligence #MarketTrends #LuxuryHandbag  #LuxuryHandbagMarket

#IB50 Chapter 4 – Express or the Power of Identity Fashion and luxury are two of the most significant categories where brands can authentically engage with consumers by fulfilling their desire for self-expression and individuality. These brands are not just product providers—they become identity drivers, using storytelling and cultural relevance. Since 1974, Interbrand has collaborated on both strategic and creative projects with iconic companies, aiming to elevate their brand experiences as real and measurable catalysts for growth. It’s crucial to remember that the Role of Brand in these categories, especially in luxury, is paramount; the brand plays a key role in purchase decisions. Nike, Juventus Football Club, Forecast, SEPHORA, The North Face, Primark, NET-A-PORTER, ASICS, Galeries Lafayette, Carolina Herrera, Esprit, ASOS.com, VOLCOM, Jean Paul GAULTIER, Christian Dior Couture, Burberry, HUGO BOSS, Luna Rossa Prada Pirelli, Selfridges, Shock Absorber UK, TOPSHOP TOPMAN, Netshoes, Bvlgari, Gucci, Brioni, Piaget, Tiffanys, TRYANO, Saint Laurent, TENDAM, Cartier… The list goes on, and our desire is to continue expanding it over the next fifty years, putting experience, sustainability, and technology at the service of consumer expectations. #ExpressArena #Fashion #Luxury

Kering Group's Q3 2024 revenue declined by 15 per cent YoY to €3.8 billion (~$4.09 billion), with a 26 per cent drop in Gucci and 13 per cent in Yves Saint Laurent. Bottega Veneta's revenue grew by 4 per cent. From other Houses, the revenue dropped by 15 per cent YoY. CEO François-Henri Pinault cited challenging market conditions and a focus on long-term sustainable growth amidst current setbacks. #Fibre2Fashion #f2f #apparel #textile #fashion #textileindustry #f2fnews Read more here: https://lnkd.in/d5g4ATaJ

Style Arcade’s Week in Fashion 💎 Unpacking the latest fashion updates and trending news making headlines across the industry: 🛍️ Kering issued its third profit warning this year as third-quarter sales dropped 16 percent to €3.78 billion ($4.08 billion), falling short of expectations. The group faced a market-wide slowdown, with major brands like Gucci, Saint Laurent, BALENCIAGA, and McQueen seeing double-digit declines, while Bottega Venetta and eyewear posted modest growth https://loom.ly/klHxkBQ 📉 LVMH reported a 5 percent drop in third-quarter sales in its core fashion and leather goods division, impacting major brands like Louis Vuitton, Christian Dior Couture, Loewe, and CELINE: https://loom.ly/vWXIgxQ 📱 With the upcoming election ad blitz from Kamala Harris and Donald Trump flooding social media, Google ad costs have already risen by 10%, and further increases are expected. Brands are now turning to alternative channels like SMS marketing and shopping newsletters to cut through the noise and reach customers ahead of the holiday season: https://loom.ly/jrsBwpo 📸 Reuters #fashionnews #fashionindustry #businessreport #fashionintelligence #retailnews:

The future of the luxury fashion sector is clouded by the lack of certainty provided by sales updates from Europe's major luxury brands regarding the recovery of Chinese demand for high-end fashion. #luxuryhome #fashionindustry #brands #fashionindustry #fashionupdates #fashionnews Read More: https://lnkd.in/g8ANq4-t

It appears that there's continued bifurcation in the luxury sector. It appears the aspirational customer is being impacted by general inflation and price increases impacting their wallets. The luxury customer is a little more immune to inflation (they're more impacted by stock market, which is up YTD in the US). Some this might be the quiet luxury trend, but I bet the aspirational customers looking dress the part are going to Zara.

Stuck in the middle of luxury business 🤔 ..“ „it’s seen as not enough high-end, not enough affordable,”…. Being „affordable“ with core products means not being luxury, but cashing out the brand ability. Maybe it should be start a discussion about what luxury really means? Beside the marketing interest like brand awareness, entry stages and growing what ever it takes. For sure it takes your status of being a real luxury brand. That’s why the industry rised their prizes for more than 100% in the last decade. For good, being affordable and earning money with a premium brand is good too.

💡🔥 🌟 Unlocking the Secrets of Success: Decoding Luxury Conglomerate Performance in Q1 24 🌟 👜🧥 Are you prepared to delve into the realm of luxury and witness the strategic moves being executed by industry titans? The latest report from Business of Fashion unveils an intriguing pattern: while some brands are facing challenges, leading players such as Hermès, Zegna, and Brunello Cucinelli are shining brightly. What distinguishes them from the rest?🤨🤔 💎 The key lies in the charm of "quiet luxury." Consider Hermès, renowned for its iconic bags that attract discerning customers in pursuit of quality and exclusivity. The secret sauce? Personalization. Today's consumers desire that unique touch that enhances their style and sets them apart in a sea of uniformity. 💸 Meanwhile, brands like Gucci and BALENCIAGA find themselves at a crossroads, navigating the intricacies of the luxury market. Are they perceived as not upscale enough by some and not quite accessible by others? As CFO Armelle Poulou aptly acknowledges, the challenge is substantial. 💭 The crux of the matter is this: quality surpasses quantity consistently. Genuine luxury transcends a hefty price tag; it embodies artistry, meticulous attention to detail, and the capacity to make a statement through understated elegance. As societal views on wealth and status evolve, perhaps it's time for these brands to redefine the essence of luxury in the contemporary era. 🚀 The luxury landscape is transforming, and it's time to see which entities will seize the moment and which will stumble. What are your reflections on this topic? Accompany me as we delve into the shifting dynamics of the industry and unearth the strategies that will mold its future. 💼✨ #LuxuryGameChanger #QualityOverQuantity #LuxuryInsights 💡🔥

👉 The luxury Fashion market must be flexible. To keep up with changing customer preferences and take advantage of new opportunities. The Business of Fashion offers insightful data on how luxury brands can overcome the slowdown, for example, in emerging markets and changes in consumer preferences. A must-read! "Quiet Luxury" is one of the concepts that came up. So we decided to prepare some information regarding this trend to share in the next days. 🙏 #JustFashion #PortugueseFashionMarket #FashionDistribution #FashionWholesale #QuietLuxury