"Many labels took advantage of post-pandemic 'revenge spending' by jacking up prices. The cost of luxury goods has increased by an average of 65 percent since 2019, according to Paris-based analysts Luxurynsight. In a rush to hit ambitious financial targets, labels have changed designers and styles with dizzying speed. None more so than Gucci, where the exuberant Alessandro Michele was replaced by the sober Sabato De Sarno, who was then replaced by the Gothic Demna Gvasalia."
"US consumers are closing their monogrammed wallets because Donald Trump's 15 percent tariffs on EU imports are pushing up the price of European brands. In Milan, the talk is of ethical challenges. LVMH-owned Loro Piana, whose carefully curated image is a mix of heritage and craftsmanship, has been placed under judicial oversight for one year after Italian authorities accused the firm of failing to stop subcontractors from exploiting migrant workers. Armani and Dior have also been called out for labor lapses."
US tariffs on EU imports have raised prices for European luxury brands and dampened consumer spending. Major Italian and French houses face ethical problems, including judicial oversight for Loro Piana over alleged subcontractor exploitation, and criticisms of Armani and Dior for labor lapses. Chinese high-end demand has softened, leaving flagship malls unusually quiet. Many labels increased prices during post-pandemic 'revenge spending', with luxury prices up about 65% since 2019, and have changed designers rapidly, creating brand confusion. Gucci reported a 25% comparable sales decline in Q2. Industry estimates indicate tens of millions of consumers have left the luxury market and further shrinkage is possible. There is a need to rebalance fashion priorities with human and consumer needs.
Read at Elite Traveler
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