蘑菇AV

Louis Vuitton鈥檚 biggest problem is the difficult luxury market, which is facing myriad headwinds ranging from China鈥檚 economic malaise to geopolitical uncertainty to softening demand from US consumers.

Luxury goods. Despite an affluent customer base, luxury brands are already feeling the pinch. LVMH Moet Hennessy Louis Vuitton鈥�, owner of Louis Vuitton and Dior, reported a 5% drop in fashion and leather goods sales in the Q1 2025, citing the 鈥渆conomic turmoil linked to tariffs.鈥�. Automotive and parts.

Worldwide sales of personal luxury goods will only grow by 3.2% in 2024 to reach $429.15 billion, weighed down by slower growth in the US and China, according to an August 2024 蘑菇AV forecast.

Lord & Taylor鈥檚 new owner has grand ambitions: The storied department store will relaunch as a luxury off-price etailer and license its brand name for a wide range of merchandise.

That鈥檚 forcing companies to lower prices to lure budget-conscious travelers and beef up their luxury offerings to strengthen ties with wealthier consumers.

Even high-income consumers are beginning to rethink their spending, with many choosing to trade down or pull back on discretionary categories like dining out and luxury goods, according to an analysis of US consumer credit and debit card data by Consumer Edge. Given those pressures鈥攁nd taking tariffs into account鈥攚e expect retail sales to grow just 1.5% this year.

While premium cards jockey to snag wealthy customers鈥� luxury and travel spend, offerings like the Escape card could bolster more modest bookings in back-of-cabin airfare tickets and mid-range hotels.

Fetch鈥檚 strategy: As premium credit cards package their rewards to entice wealthy cardholders with travel and luxury dining perks, credit cards like Fetch can narrow in on consumer categories where average Americans want rewards鈥攇roceries, gas, and retail. Gamifying rewards through app-based tie-ins also adds a dose of fun to everyday spend while training users to turn to Fetch when they're shopping.

Respondents were asked, "When starting your search for a product (e.g., clothing, footwear, accessories, luxury, cosmetics, consumer electronics, toys and hobby) where do you typically begin your search?". Methodology: Data is from the December 2024 ESW "Global Voices Survey" in partnership with 蘑菇AV. 18,448 adults ages 18+ worldwide were surveyed during October 20-November 1, 2024.

Asmacroeconomic conditions rock airlines, Southwest鈥檚 new lineup may alienate longtime flyers who will lose some of those perks, but the airline may be able to get those flyers and others to open a card to get those luxuries back鈥攅arning from them via fees, interchange, and rewards.

Shifting cardholders onto its Sapphire Preferred and the Gold card, for example, should instill a continuing sense of luxury without cardholders entirely.

Worldwide luxury sales will eke out 3.2% growth in 2024. Except for the pandemic year of 2020, when sales fell by 19.3%, this is the smallest gain we鈥檝e seen since we started tracking the metric in 2018.

Luxury travel upgrades:. American Express Travel added over 400 locations to its network of global properties for Platinum cardholders across 49 new destinations. Ranging from boutique hotels to premium resorts, the scale of Amex鈥檚 travel portfolio is now the largest of any issuer.

Amex鈥檚 Q2 earnings showed that wealthy travelers are still buying front-of-cabin seats and luxury hotel bookings. These are cardholders who are far less sensitive to price hikes鈥攐r who use the cards enough to feel the cost is more than justified.

Chinese consumers are showing a similar reluctance to spend鈥攐r even travel鈥攁broad, LVMH deputy CEO Stephane Bianchi told French lawmakers, a major problem for luxury brands heavily reliant on the cohort. Our take: While the temporary tariff reprieve gives China鈥檚 economy some breathing room, consumers are rightly wary of the impact from a prolonged trade war.

Amazon is also adding more premium and luxury brands. Department store Saks opened a new storefront on Amazon with a curated selection of luxury beauty and fashion items. Laura Mercier鈥檚 new storefront features exclusive bundles, limited-edition products, tutorials, and interactive questionnaires.

Macy鈥檚 had a mixed Q3: Sales at its luxury Bloomingdale鈥檚 and Bluemercury labels rose, but its namesake brand is struggling to attract shoppers

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.

Luxury brand LVMH plans to open a second Louis Vuitton factory in Texas. Pharmaceutical companies are planning significant US investments, with AstraZeneca recently announcing a $50 billion expansion that includes construction of a Virginia manufacturing center that will be its biggest single hub. BMW said in April that it was mulling boosting output at its Spartanburg, South Carolina plant.

The tech鈥檚 discreet design, paired with fashion-forward luxury brands and stronger AI abilities, could drive mainstream consumer adoption. Marketers should view smart glasses as more than a casual consumer device. Start developing internal tools such as training and simulation applications and user-facing offerings like personalized experiences and voice-activated product walkthroughs.

Our take: Macy鈥檚 diversified business, which includes everything from off-price to luxury, could help it stay relevant to a broader array of shoppers. At the same time, Macy鈥檚 is especially vulnerable to declines in discretionary spending, which is already under pressure as shoppers prioritize necessities amid uncertainty.

Mytheresa knows what luxury shoppers want: The luxury ecommerce retailer grew sales by 7.6%, bucking the global luxury slowdown.

Why it matters: Netflix House is striking at a moment when mall traffic is showing resilience thanks to luxury and experiential offerings. Premiere mall real estate, meanwhile, is abundant after retailers like Macy鈥檚 closed hundreds of large locations in recent years. But beyond delving into retail, Netflix House is an opportunity for the streamer to solidify itself as a powerful entertainment brand.