20 luxury industry news stories from Fall 2024: When the Rich Tighten Their Belts, It’s Designer Leather.
@Giorgio Armani Poldo 2024 collection
The luxury goods sector faced a challenging Fall 2024, marked by a 2% decline in global sales—one of the weakest performances on record—driven by price increases and economic uncertainties that reduced the customer base. Despite this downturn, certain segments and regions showcased resilience and growth. Jewelry remained the most robust category, maintaining positive revenue growth even as overall luxury sales faltered. Additionally, the second-hand luxury market in China surged, as cost-conscious consumers sought alternatives amid economic pressures and a slowdown in new luxury purchases.
Geographically, Milan’s Via Montenapoleone surpassed New York’s Upper Fifth Avenue as the world’s most expensive shopping street, highlighting a significant shift in global luxury hubs. Meanwhile, the luxury travel sector continued to thrive, supported by increased spending from high-net-worth individuals, particularly in Australia. The fragrance industry projected continued growth into 2025, with emerging trends leaning towards “neo gourmands” inspired by savory foods and café drinks.
Brand strategies reflected the sector’s turbulence and adaptability. Loewe entered the Vogue Business Index top 10, showcasing competitive strength despite economic challenges, while Burberry initiated a £40 million cost-cutting plan to stabilize and refocus on its core offerings. In contrast, Matches Fashion entered administration following its acquisition by Frasers Group, and LVMH expanded its watch division by acquiring Swiss clockmaker L’Epée 1839. Maison Yoshiki Paris, launched by Japanese musician Yoshiki, debuted at Milan Fashion Week, signaling new entrants in the luxury fashion arena. Additionally, regulatory hurdles emerged as the Capri Holdings and Tapestry merger was blocked by the U.S. Federal Trade Commission over competition concerns.
Consumer behavior also evolved, with a rising trend in luxury funerals, reflecting a demand for personalized and lavish ceremonies. Luxury brands increasingly prioritized sustainability, implementing initiatives for environmental and social responsibility to meet ethical consumer expectations. Despite the overall market slowdown, specific events like Canada Goose’s Black Friday sale and the reopening of the Four Seasons Hotel in New York underscored ongoing opportunities within the luxury landscape.
Overall, Fall 2024 highlighted a period of adaptation and strategic recalibration within the luxury industry, as brands navigated economic headwinds, shifting consumer preferences, and evolving market dynamics to sustain their appeal and growth.
Global Luxury Sales Decline: Sales of personal luxury goods are set to fall 2% this year, marking one of the weakest years on record, with price hikes and economic uncertainty shrinking the industry’s customer base.
Milan’s Via Montenapoleone Tops Shopping Streets: Milan’s Via Montenapoleone has become the world’s most expensive shopping street, surpassing New York’s Upper Fifth Avenue for the first time in 34 years.
Second-Hand Luxury Market Growth in China: A growing number of cost-conscious Chinese consumers are turning to second-hand luxury goods amid economic pressures and a slowdown in the new luxury market.
Fragrance Trends for 2025: The fragrance industry is set to continue growing into 2025, with trends inspired by savory foods and café drinks, evolving into more nuanced “neo gourmands.”
Luxury Travel Boom Continues: The luxury travel market is anticipated to thrive for at least another year, driven by increased spending from high net worth individuals, particularly in Australia, accoring to Adelaide Now.
High Jewellery Launches in Autumn: This autumn has seen a rise in high jewellery launches, diverging from traditional timings, as brands aim to capture media attention and engage affluent clients during the holiday season.
Luxury Funerals on the Rise: The trend of luxury funerals is transforming traditional burial practices, with personalized, lavish ceremonies becoming increasingly popular.
Loewe Enters Vogue Business Index Top 10: Loewe has entered the Vogue Business Index top 10 for the first time, ranking ninth, reflecting a competitive environment amid economic challenges.
Burberry’s Turnaround Plan: Burberry has launched a £40 million cost-cutting program, aiming to stabilize the brand and refocus on its core outerwear and iconic trench coats.
Matches Fashion Enters Administration: Luxury retailer Matches Fashion entered administration and cut over half of its staff, months after being acquired by Frasers Group.
LVMH’s Acquisition of L’Epée 1839: LVMH has strengthened its watches division with the acquisition of high-end Swiss clock maker L’Epée 1839.
Capri Holdings and Tapestry Merger Blocked: The merger between Capri Holdings and Tapestry was blocked by the U.S. Federal Trade Commission, citing reduced competition concerns.
Luxury Goods Sector Faces Challenges: The luxury goods sector is facing significant challenges, with a notable decline in sales in China and the United States, leading brands to re-evaluate their strategies.
Canada Goose Black Friday Deals: Canada Goose’s Black Friday 2024 sale offered up to 30% off select items, providing an opportunity to purchase premium outerwear at discounted prices.
Four Seasons New York Reopens: The Four Seasons Hotel in New York City has reopened, noted for its 52-story I.M. Pei design, adding to the city’s luxury hospitality offerings.
Luxury Brands Focus on Sustainability: Luxury brands are increasingly emphasizing sustainability, with initiatives aimed at environmental and social responsibility to meet consumer demand for greater transparency and ethical practices.
Luxury Spending Hits Low: The personal luxury goods market is in the midst of its first slowdown since the Great Recession, excluding the Covid-19 pandemic, with a 2% erosion at current exchange rates compared to 2023.
Jewelry Resilient Amid Luxury Slowdown: In a year that will see only one third of luxury brands reach positive revenue growth, jewelry was the most resilient segment, according to Bain & Co.
@Four Seasons New York Downtown
