蘑菇AV

India will be a focus market for fashion brands in 2025: They鈥檙e counting on the country鈥檚 growing affluent population to offset weakness in China.

Herm猫s鈥� strong Q3 performance makes it a luxury outlier: The company鈥檚 double-digit growth was in stark contrast to Kering鈥檚 slump, as weak global demand weighed on sales.

US cross-border buying is dominated by low-cost items from China, though there鈥檚 a small but growing market for high-end goods from overseas. Some 15% of US consumers have made cross-border purchases of luxury goods, per ESW鈥檚 June 2022 survey. High shipping costs and slow delivery are the leading obstacles.

Chinese consumers aren鈥檛 buying as much beer as they used to: Anheuser-Busch InBev and Carlsberg both reported bigger-than-expected volume declines in Q3.

Ralph Lauren鈥檚 growth plans are focused on expanding its women鈥檚 business, including apparel and handbags, as well as broadening its reach in China and India. The context: Personal luxury sales soared in 2021 and 2022 as younger and middle-income consumers splurged on high-end goods.

Luxury ecommerce is a tough place to play: That鈥檚 why Cartier owner Richemont is selling Yoox Net-A-Porter to Mytheresa鈥攐ne of the few platforms that has found sustained success.

Chanel purchases Paris property at 42 Avenue Montaigne: The French designer snapped up the building one block from the Champs-脡lys茅es as luxury competitors race to claim prime real estate.

Is India the next China? Retailers from Apple to Dior to Levi鈥檚 are looking to expand in the world鈥檚 fastest-growing retail market, but success isn鈥檛 guaranteed.

LVMH鈥檚 sales fell more than expected in Q2 in yet another sign of trouble for the luxury industry. 2025 is shaping up to be another difficult year for the luxury industry鈥攁nd not only because of tariffs. While the duties are certainly hitting consumer sentiment and buying power, limited innovation and a perceived lack of value are diminishing luxury鈥檚 appeal, even among shoppers who can afford it.

Demand in Q2 was 鈥渕ore favorable than we expected,鈥� eBay CEO Jamie Iannone said on the company鈥檚 earnings call, citing 鈥渂road-based strength鈥� across categories like collectibles, luxury, apparel, and motor parts and accessories. Shoppers not only bought more items but were also willing to pay more for them: Average selling prices rose during the quarter.

Notably, while the majority of its sales still come from the US, Revolve reported robust Q3 international sales growth of 20% YoY, even in China鈥攁 region that dragged down many luxury players this year.

Worldwide personal luxury sales will grow from $415.45 billion in 2023 to $499.59 billion in 2027, but growth is slowing, according to our forecast.

Ralph Lauren and Canada Goose defied luxury slowdown in Q1: But tariffs and uncertainty could reverse that momentum.

The 18 countries surveyed were: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, South Africa, South Korea, Spain, Switzerland, United Arab Emirates (UAE), the UK, and the US.

Our take: Luxury companies are girding themselves for a more difficult operating environment in 2025, as challenges in China and uncertainty in the US throw up considerable roadblocks to growth.

China takes baby steps to address its consumption problem: Beijing will expand its trade-in program to include consumer electronics as it avoids committing to comprehensive stimulus measures.