How to bring back luxury shoppers? Try having more fun.
How Loewe, Jacquemus, and Miu Miu are defying the ‘luxury slowdown’
Revenue declines for LVMH’s fashion and leather goods division (which includes Louis Vuitton, Dior, Celine, and Fendi), and Gucci’s parent company Kering have spurred a flurry of headlines declaring a luxury slowdown. Culprits include consumer frustration with price increases, geopolitical instability, and lower consumer confidence in China.
These are all true headwinds. However — not everything luxury is slowing. Luxury travel continues to boom. And a handful of luxury fashion brands are defying the downturn — posting double digit growth in their latest earnings.
It’s not that luxury demand has dried up. But, typical ‘luxury’ offerings have gotten stale. To understand what customers are looking for in luxury, take a look at who is growing:
Miu Miu.
Jacquemus.
Loewe.
What do all these brands have in common?
A state of play.
Unlike stereotypical luxury — stoic, serious, refined — these brands put forth fun, personality, and a sense of surrealism that aligns to what’s aspirational today.
