Luxury brands are experiencing a significant slowdown due to declining demand in China, reduced spending by less-affluent consumers, and a "death spiral" of overstocking. Major, high-end brands facing pressure include Gucci (shares down 43% in two years), Burberry, Balenciaga, and Yves Saint Laurent. Even giants like LVMH (Louis Vuitton/Dior) and Chanel have faced valuation hits.
Experts declare the "luxury supercycle is over," citing weakened Chinese spending, retreating aspirational consumers, and Gen Z's disinterest. While Hermès and some jewelry brands thrive, many major players like LVMH, Kering (Gucci), Nike, Chanel, and Dior valuations are down, indicating a "structural demand problem."
The personal luxury fashion market is losing its luster. Recent sales figures show that the industry, which proved resilient after pandemic lockdowns, is slowing down.
The Fashion & Leather Goods business group saw revenue decline in the first nine months of 2025, with an improvement in the third quarter, reflecting good resilience with local customers, whereas 2024 had been boosted by strong growth in tourist spending, particularly in Japan.
Gucci ... widely seen as a red flag bc for prices rising faster than craftsmanship, inconsistent quality control, and heavy reliance on branding over durability.
1. Louis Vuitton. When it comes to the most valuable luxury brand, Louis Vuitton still wears the crown. With its signature monogram, instantly recognizable bags, and constant stream of collaborations, LV is more than a label—it's a global cultural symbol.
Chanel: Despite a drop in sales in 2024, the luxury group maintains its investments. The world's second-largest luxury brand saw its revenue fall by 4.3% in 2024. CEO Leena Nair announces the opening of 48 new boutiques in 2025.
In early November, a number of social media users called for a boycott of Dior owing to rumours that, after voicing her support for the people of Gaza, the Dutch-Palestinian model Bella Hadid had been replaced as brand ambassador by May Tager, who is Israeli.
The "333 rule" in clothing refers to two popular minimalist fashion concepts: the viral TikTok trend of using 3 tops, 3 bottoms, and 3 shoes to create numerous outfits (9 items total) for styling practice, and the more extensive Project 333, where you select 33 items (including clothes, shoes, and accessories) to wear for three months, excluding essentials like underwear, workout gear, and sleepwear, to simplify your wardrobe and reduce decision fatigue. Both methods focus on versatility, quality over quantity, and creating a functional capsule wardrobe.
What brands do the ultra-wealthy wear? The ultra-wealthy often wear brands such as Zilli, Kiton, Stefano Ricci, Tom Ford, Brioni, and Cesare Attolini. Where do rich people shop? Ultra high-end brands often have exclusive boutiques and flagship stores around the world.
Coco Chanel vs. Christian Dior: Fashion Philosophy in Conflict. Coco Chanel didn't limit her biting criticisms to Elsa Schiaparelli alone. She also famously disapproved of Christian Dior's approach to women's fashion.
Some pro-Palestinian advocates have previously called for a boycott on LVMH brands, citing CEO Bernard Arnauld's substantial investments in Israeli cloud-based security company Wiz. (The company is not on the official Boycott, Divestment and Sanctions movement list.)
Kering sales fell 15 per cent to €3.7 billion in the second quarter of the year, as star brand Gucci continues to slip. Sales at the brand — Kering's largest — dropped 25 per cent to €1.46 billion, after a 25 per cent decrease in the first quarter.
Most of Chanel's clientele have an understanding and an appreciation of high-standard products and can afford to buy such goods. The brand is especially appealing to 25-54-year-olds, women who understand the meaning of eternal elegance and fashion that can't be accessed by everyone.
Recent Articles by Tianwei Zhang. LONDON — Despite a 7 percent slip in revenue in the third quarter of 2025, Saint Laurent was able to claim the top spot in the latest Lyst hottest brands ranking for the first time, dethroning Miu Miu.
