Can Chanel, Dior and Gucci bring the big spenders back as luxury industry struggles?
A new generation of designers is taking command at brands from Chanel and Dior to Celine and Versace to reverse 2024’s slump in the sector
Chanel and Dior are among a record number of top fashion brands that will introduce new designers’ collections on the catwalk in the coming weeks, aiming to reignite shoppers’ interest in a bruised luxury industry that lost one of its greats, Giorgio Armani, last week.
The stakes are high for the US$400 billion sector, which kicks off a month of fashion shows in New York, London, Milan and Paris on September 10. Brands have struggled to revamp sales since the post-pandemic boom wound down two years ago.
After averaging annual growth of 10 per cent for nearly a decade, the sector slumped last year, triggering a flurry of changes at the leadership and creative levels.
“The industry is facing troubled waters,” says Jonathan Siboni, chief executive of consultancy Luxurynsight.
The slump has prompted sweeping change across the sector, with new CEOs arriving at companies including Gucci-owner Kering and Italian brand Valentino, as well as high-level management reshuffles at the world’s biggest luxury conglomerate, LVMH.