The luxury sector has faced a severe downturn, with significant declines in share prices for companies like LVMH, L’Oréal, and Estée Lauder. This slump is partly due to economic issues in China, stylistic recessions, brand saturation, and environmental concerns.
Forbes states, the growth engine in China has stalled, leading to reduced demand for luxury goods. Mainstream brands are struggling to innovate, leading to consumer fatigue. Furthermore, younger consumers are shifting towards sustainability and experiences, further impacting luxury sales. The industry is also suffering from a loss of trust and increasing skepticism about its values.
Luxury fashion brands repeating the same items over and over again
Additionally, it appears that these houses are offering similar products again and again. Louis Vuitton has re-released a few of their popular items and collaborations, which may be popular among the general public. But, there have been several calls saying that the brand is not innovating in terms of their looks.
TikToker @sajjad.hus mentions that these brands are recycling the same look again and again. He adds that the industry is dominated by consumers who are inclined to buy things that look nice. This problem could stem from over-consumption as he states instead of those who appreciate the fashion industry.
Cost of these fashion pieces
TikToker @eva.ursin, renowned for her chic fashion sense and shopping sprees, recently shared that a Chanel jacket and skirt set costs over US$30,000 (RM134,000). She questions the actual worth of these items as they’re not made of any particularly special materials or would have any distinctions from other brands.
The future of these luxury houses
There have been many statements claiming half of these luxury brands may disappear in the next 5 years. This could be the reality of it all if they do not buckle up and provide the service, price and quality they are supposed to.
For a handbag that costs RM10,000 and above, it should be immaculate in quality. But unfortunately, on Reddit forms and TikTok videos, the contrary is true.
Burberry has publicly acknowledged the need to re-strategize and may potentially lower their prices. The status of other luxury brands remains uncertain.
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