Just earlier this year, the luxury French brand, Chanel, posted a growth of 16%. However, it is unclear if they’re still growing as brands like Hermes are also suffering from the brunt of this recession. An executive from the brand states that this drop in demand is in lieu of a new phenomenon called “luxury fatigue.”
Luxury Fatigue or Extortionary Prices Coupled with Quality Decline?
However, this topic of conversation is not a new one as several influencers and YouTubers have been discussing the alleged reduced quality and massive price increases. Just half a decade ago, a handbag from the brand would cost less than half the price it does today. Customers allege that even the quality was significantly better during said time.
Just a few days ago, a Chanel customer who is also a Redditor posted a not so subtle defect on their $10,000+ classic flap handbag. “Some users have noted that the bag is defective and suggested the customer contact their salesperson for a refund or exchange.
Reports state, slowdown in China’s market is impacting luxury houses. Chanel’s Frederic Grangie warned of “luxury fatigue” and oversaturation. LVMH and Kering saw significant sales declines due to reduced Chinese demand.
Grangie anticipates challenging years ahead but believes Chanel’s long-term perspective will help navigate this crisis.
Chanel’s Rocky Future
Additionally, Virginie Viard, the former creative director, left Chanel a few months ago. Her successor has yet to be named, leaving fashion enthusiasts unimpressed with the rumored candidates. Speculation suggests Marc Jacobs might join the brand, but nothing is confirmed.
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