THE LUXURY CONSULTING COMPANY’s Post

The year begins with an exciting read: the State of Luxury Report is now available! 👉 https://lnkd.in/ep96Z4gV   After years of remarkable growth, the luxury industry is navigating significant macroeconomic challenges, shifting customer preferences, and the need to redefine its value proposition. In collaboration with The Business of Fashion, our latest analysis outlines five strategic imperatives for luxury executives to navigate this transformative period: - Refine your long-term strategy and value proposition through a comprehensive reset - Restore product excellence through iconic products and realigning business scale with craftsmanship heritage - Rethink client engagement strategy through unique “money can’t buy” experiences and data- and tech-enabled client insights - Bridge the talent capability gap to attract, develop, and retain top talent while evolving corporate cultures - Future-proof your portfolio with clear expansion strategy and seek complementary acquisitions   Download the full report to explore actionable strategies for 2025 and beyond. Thank you to Gemma D'Auria, Imran Amed, Amaury Saint Olive, Anita B., Joëlle Grunberg, and Sarah André for these insights!   #LuxuryIndustry #FutureOfLuxury #StrategicReset #BoF #McKinseyInsights

After several months of hard work and a great join team effort between The Business of Fashion and our McKinsey & Company global team led by Gemma D'Auria, Anita B. and myself our latest report ‘State of Luxury’ is live! Warm thanks to Amaury Saint Olive, Sarah André and Liann Wu for the relentless focus and dedication. Be on the watch out for our multiple events coming up, starting this week where I will be presenting Wednesday at the Luxury Outlook Summit 2025 thanks Mickey ALAM KHAN and Thursday at the Fashinnovation panel thanks Marcelo Martins Guimaraes.   After five years of remarkable growth, the luxury industry faces new challenges. As we step into 2025, we believe there are five strategic imperatives for luxury executives in the coming years: - Conduct a strategic reset to sharpen long-term strategy and value proposition. - Restore product excellence through iconic products and realigning business scale with craftsmanship heritage. - Rethink client engagement strategy through unique “money can’t buy” experiences and investing in tech, AI, and data capabilities. - Bridge the talent capability gap to attract, develop, and retain top talent while evolving corporate cultures. - Futureproof your portfolio with a clear expansion strategy and seek complementary acquisitions.   Read more about our perspective on how to ensure continued success and growth in our detailed report: https://lnkd.in/e4WzRth5   #LuxuryIndustry #FutureOfLuxury #StrategicReset #BusinessTransformation  

Global Luxury Market: Navigating a Short-Term Downturn with Strategic Precision The global luxury market, traditionally seen as resilient, is experiencing a short-term downturn in late 2024. Inflation, geopolitical tensions, and shifting consumer behaviors across key regions like Europe, North America, and China are impacting sectors from fashion to beauty, luxury cars, and more. Strategic adaptation is essential for brands to find growth opportunities. Current Market Pressures: Inflation and rising interest rates are slowing demand, even in affluent markets. Notably, in China, economic challenges are dampening luxury sales, with Europe and North America also seeing reduced consumer confidence. Brands like LVMH and Kering are feeling the pressure, with slowing sales, while Hermès remains a standout performer, although cautious about future risks. Strategic Priorities for Brands: 1. Accelerating Digital Transformation: Enhancing e-commerce and AI-driven personalization is crucial as physical retail slows. 2. Sustainability & Ethical Luxury: Younger consumers are driving demand for sustainable, ethically produced luxury products. 3. Geographic Diversification: Expanding into markets like the Middle East and Southeast Asia will be vital to offset declines in traditional markets. Despite the current challenges, there are long-term opportunities for luxury brands willing to innovate and diversify. As President & CEO of THE LUXURY CONSULTING COMPANY, I am here to help luxury brands navigate these complexities and find growth opportunities. Let's collaborate to ensure resilience and success in 2025 and beyond. Thierry Nataf President & CEO THE LUXURY CONSULTING COMPANY #LuxuryMarket #DigitalTransformation #Sustainability #GlobalBusiness

Recent earnings reports from top luxury brands show a worrying trend. With major names, many experiencing declines, the luxury sector is facing challenges that can't be ignored. China’s sluggish economy and over-reliance on price hikes are key contributing factors. While some brands are still defying the odds with impressive growth, many others are struggling to maintain momentum. The question now is: what’s next for the luxury market? Is it time for the industry to rethink its approach? Bold action will be needed to adapt to these shifts. At Data&Data - The intelligence of luxury, we help luxury brands navigate challenges in the grey and secondary market and make data-driven decisions for the future. Let’s talk about the future of luxury and how brands can stay ahead. Zouheir Guedri www.data-and-data.com #Luxury #MarketTrends #BrandStrategy #DataDrivenInsights #LuxuryBrands https://lnkd.in/gx-2DnJ3

As the luxury market contends with economic slowdowns in Asia, major brands like Tiffany and Swiss watchmakers are scaling back operations. Our latest article explores whether this shift opens new opportunities for SMEs focused on Slow Luxury. Discover how smaller luxury brands might thrive amid the changing market dynamics and what steps they can take to capitalize on these trends. Read on to find out more 👉 https://lnkd.in/dbUKBGfR

2025 is going to be an interesting time for luxury brands to hit the "reset button" and review internal strategy following the end of a cycle. Gemma D'Auria delivers the latest "State of Luxury" report with some key recommendations to guide upcoming decisions. A must-read this January. #luxury #brandstrategy #businesstransformation

2025, THE YEAR WHEN LUXURY MUST “RESET” ITSELF. Luxury has always experienced macroeconomic slowdowns which have forced it to slow down investments and freeze recruitment in a sector where the best specialists are nevertheless very rare. Having experienced these precedents, I have the feeling that the luxury industry is this time at a critical turning point. The global market is expected to grow by 2 to 4% per year between 2025 and 2027. Leather goods and jewelry will experience growth of 4 to 6% per year (Source McKinsey & Company). In 2025, companies must review their priorities: invest in talent, focus on product excellence and find new ways to interact with their customers, who are largely undergoing generational change. With demand gradually recovering in China and the sector strengthening, strong results from Richemont and Brunello Cucinelli i have fueled investor optimism and highlight important changes in luxury consumption habits. The luxury clientele is diversifying and customers have a more complex relationship than ever with products. Houses must continue to initiate and reconcile dialogue between young and older customers without alienating them. Customers who are interested in luxury experiences (not just products) and are shifting their spending towards travel and wellness. The rapid expansion of the sector over the last five years has led to overexposure and the weakening of the promise of exclusivity, creativity and craftsmanship which has failed to deliver on its promises focusing on time to market and the increase in its margins. Stakeholders must perform a strategic “reset” by clarifying core values and must align with priority customers in order to refine the long-term strategy. At the same time, they must continue to invest in creating iconic products that will resonate with target customers. Finally, Maisons must deliver on the promise of quality and its artisanal heritage by investing in the stability of the supply chain and implementing best sourcing and manufacturing practices. Demonstrating vision, creativity and a renewed commitment to excellence, while focusing on long-term investments and multi-year initiatives are simple steps to take without delay. Without forgetting the CSR initiatives, implemented unevenly over the past few years, or even absent from certain brands... Companies that do not make these changes risk sacrificing the relevance of the brand and its products and disappearing. #luxuryexpert #2025luxurytrends #luxuryvision #brandmanagement #luxuryleatherexpert #leatheraccessoriesexpert #resetstrategicpriorities  #branddesirability #luxuryoperations #strategicpriorities #industryleading #luxurymarketoutlook #luxurymarketbackdrop #luxuryslowdown  #luxuryexecutives #2025forecast #luxurymarket #luxuryperformance  #luxuryexperience #FashionNetwork #KUNGHEIFATCHOI #恭喜發財

I am excited to share our latest report ‘State of Luxury’! It's the result of another great collaboration with The Business of Fashion and Imran Amed, where we look at the priorities for luxury leaders.   After five years of remarkable growth, the luxury industry faces a number of daunting challenges. As we step into 2025, we believe there are five strategic imperatives for luxury executives in the coming years: - Conduct a strategic reset to sharpen your long-term strategy and value proposition. - Restore product excellence through iconic products and realigning business scale with craftsmanship heritage. - Rethink client engagement strategy through unique “money can’t buy” experiences and investing in data, AI and tech capabilities. - Bridge the talent capability gap to attract, develop, and retain top talent while evolving corporate cultures. - Future-proof your portfolio with a clear expansion strategy, including complementary acquisitions.   Read more about our perspective on how to ensure continued success and growth in our detailed report:  https://lnkd.in/daZTMxeV Kudos to The Business of Fashion and my McKinsey co-authors Anita B., Joëlle Grunberg, Amaury Saint Olive, and Sarah André   #LuxuryIndustry #FutureOfLuxury #StrategicReset #BusinessTransformation

A big report finally goes out! 📣 👏 Speaking of luxury, it is my favorite sector. 👜 However, it is seeing moderating growth as many shoppers who aspire to purchase luxury goods feel the weight of inflation and become more cautious. 🛍 We expect premium luxury businesses to increase their global market share, while affordable luxury brands may experience a decline. And, by 2030, China 🇨🇳will surpass the US 🇺🇸 as the largest personal luxury market! Check out our newest 77-page report: https://lnkd.in/gT3GzxdR 👀