Our take: China鈥檚 economic woes are producing stiff headwinds that are being felt across the retail landscape. Brewers will likely continue to experience those challenges until consumer sentiment significantly improves.
LVMH fell short in Q3 as Chinese consumers鈥� pessimism hurt sales: The luxury conglomerate missed revenue expectations as economic uncertainty caused shoppers to pull back.
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.
As consumers balance the cost of necessities with the desire to splurge, secondhand luxury is a sweet spot, giving shoppers a way to treat themselves without breaking the bank. The category, which was valued at 鈧�43 billion ($45.21 billion) in 2022, will continue to grow, driven by cost-conscious and sustainability-minded consumers.
Shifting cardholders onto its Sapphire Preferred and the Gold card, for example, should instill a continuing sense of luxury without cardholders entirely.
Capri blames Michael Kors鈥� decline on excessive discounting: The luxury brand鈥檚 attempt to stay competitive by slashing prices hurt its cachet and handed momentum to labels like Coach.
LVMH expands industry influence with Moncler investment: The deal would give the luxury conglomerate a board seat, as well as a piece of a brand that successfully weathered the downturn in China鈥檚 luxury market.
The RealReal cited a focus on increasing its luxury assortment as a driving reason behind its plans to expand its fleet of stores this year. AI technology has the potential to revolutionize online resale. Nearly half of retail CFOs plan to leverage automation and AI to optimize costs in 2024.