蘑菇AV

Luxury brands rethink China approach as downturn drags on: Labels like Versace, Valentino, and Balenciaga are dialing back discounts, telegraphing exclusivity to wealthy shoppers.

Luxury brands are grappling with downturns in the US and China, the largest markets for personal luxury goods, and will have to seize opportunities for growth from new markets and product innovation.

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.

Trump鈥檚 proposed tariffs could add to luxury鈥檚 troubles: The move would curb US consumers鈥� buying power and potentially dampen Chinese consumer sentiment further.

Global personal luxury sales will contract this year: That will be the first decline since the Great Recession as weak spending in China weighs on the broader market.

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.

2025 could be another tough year for luxury companies: LVMH鈥檚 rough Q1 reveals considerable challenges as US spending drops.

In our exclusive survey with ESW, data from shoppers in 18 countries reveals new twists in the path to purchase, the rising momentum of marketplaces, and the resilience of age-old fundamentals.

Brazil鈥檚 digital economy is rapidly evolving, fueled in part by ecommerce growth. Our three-report collection explores key trends and opportunities shaping Brazil鈥檚 commerce landscape in 2025.

Tapestry鈥檚 advantages: Accounting practices notwithstanding, Tapestry is confident that its product array, affordable price point, and brand building efforts position it to continue growing despite falling consumer confidence and declining interest in luxury spending.

Gucci sales slid 25% in Q1: The brand鈥檚 struggles put parent company Kering in a tough spot as it attempts to navigate a slowdown in luxury goods spending.

Hugo Boss is adjusting to the macro landscape on the fly: The German fashion house is rerouting China-made goods to other markets and stockpiling in the US to blunt the impact of tariffs.

The news: L鈥橭r茅al saw robust growth in Q1 despite signs of sluggishness in the US market and continued weakness in China. Like-for-like sales rose 3.5% YoY, surging past expectations for 1.3% growth. Strength in Europe and emerging markets like Brazil helped L鈥橭r茅al outperform the broader beauty sector.

The news: Est茅e Lauder is boosting investment in India as it looks for pockets of growth to offset its poor performance in China and the US. The company is partnering with India鈥檚 government to boost local beauty brands. The program, an extension of its BEAUTY&YOU India initiative, offers founders grants, mentorship, and industry access.

Prada鈥檚 Versace deal comes at a difficult time for the luxury industry: Tariffs are threatening brands鈥� access to US consumers, while recession fears could trigger more conservative tastes.

Prada nears 鈧�1.5 billion deal to acquire Versace: The move would give the luxury company broader appeal as spending cools.

Connected cars have moved far beyond being a luxury offering to become the default standard for the automotive industry. This fundamental change in how consumers use their vehicles comes with significant implications for advertisers. The scale of transformation is considerable.

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.

LVMH beat analysts鈥� middling expectations in Q4: But the company鈥檚 1% growth suggests the luxury sector may take some time to bounce back.

Why it matters: Several brands have bet on India as the next major fashion destination, driven by its growing affluent population and a strategy to reduce reliance on China. One in 5 fashion executives called India a focus market for 2025, per鈥嬧�� a survey by BoF and McKinsey.

Thailand finds itself in the luxury spotlight as China鈥檚 luster fades: The country鈥檚 booming luxury travel market and growing number of ultra-wealthy shoppers is heightening the appeal.

Mytheresa expands China presence in long-term bet on luxury growth: While the retailer is bullish on its ability to woo big spenders, the country鈥檚 economic crisis and booming daigou industry could weigh on its near-term prospects.

The divide between top-tier brands and the rest of the luxury industry is widening: Companies like Brunello Cucinelli are outpacing the market as wealthy shoppers spend freely.