⚠️HERMES & CHANEL DOWN & BURBERRY OUT OF FTSE 100!⚠️ *WHAT'S HAPPENING??*

[@SophieShohetOfficial]

Hello friends! A chatty video here, exploring some articles I’ve found online. Let me know what you think of all this! Sources linked in the description if you would like to read more xx

[@seabreeze4559]

we need deflation even supermarkets are getting greedy, record high profits

[@STAlife8]

Its no secret that some of these top luxury brands have made it their mission to kick the middle class out of their stores. I think what we are seeing now are the results of those efforts. This is that initial drop-off. The middle class have become disinterested, while also not having the money to spend like they once did. Now we will have to wait and see if in the next 5 years those stocks go up again, based on mostly sales from the "top desired %" of clients. Or will they continue to fall and ultimately fail at their plan. Personally, I hope brands like Chanel fail. We (the middle class) can become loyal spenders elsewhere. 🤷‍♀

[@KarenL3027]

The luxury companies got greedy and priced their items out of reach of the one group that was actually spending. They are reaping what they have sown. I now spend my money on travel instead of a new bag.

[@irinka_kat]

Me too. Two years ago, I only travel once or twice a year and starting from last year I travel 4 to 5 times a year now. It might not be overseas but inside of Europe and I wish I had done it sooner.

[@ladysusanjane2682]

Spot on. More fun too.🎉

[@mariaalmasaniroyalhouse9214]

Now their price is competing with vacations

[@KarenL3027]

@@mariaalmasaniroyalhouse9214 at least you can shop around to get the best deal for airfares/packages🤣

[@KarinaSwan]

👏I'm glad people are getting smarter

[@literallyheather]

I still love luxury handbags more than any other category. But I haven't bought a new one in a year. Life has gotten so much more casual that I have to stop and think "where am I going to wear this??" 🤔

[@tanechkaamericanochka4839]

True😊

[@Cauldron6]

I’ve ALWAYS wanted a high-end designer bag but the more life I lived and the more I discovered my interests, I realized that there few occasions I would wear it and I would much rather spend my $ on an experience. I MIGHT have indulged but at these prices? Absolutely not! Suffice to say, you are not alone!!!

[@carrino15]

I sympathise with your question. This have made me put a big pause on luxury handbags.

[@ladysusanjane2682]

Yes my Chanel bags just sit there unused. I really only go to work or the supermarket lol😅

[@aaronitarogers1555]

I totally agree. I have all these designer bags and don’t even use them.

[@ThekimG313]

Coach is eating this up 😂 they are producing some good stuff and bringing back their best leather goods slowly and I’m here for it 😂

[@amanda1413]

Their packaging is impeccable as well.

[@babydooll84]

Coach dosent fall into this category. They aren’t luxury. They’re contemporary!

[@EXOmakemeHorololo]

​@@babydooll84that's kinda the point. They can gain from this

[@ybe7011]

Outpricing the Middle Class is the biggest mistake. Economy in general going down, high inflation. People are thinking twice what they spend on. And yes the mega rich don't really need to show off what they have nor want to. The only people I see buying bags regularly are KZbinrs that can claim it as a business expense. Also people are buying second hand luxury. It doesn't go to the retailers.

[@rhondabeard7012]

You’re correct about us buying second hand. I’ve been buying preloved for the past couple of years and even the prices of preloved bags are going up because more people are buying.

[@ybe7011]

@@rhondabeard7012 yes, absolutely! I noticed that as well. And you have to be so careful of fakes.

[@kathynovotny4201]

The prices increases have been ridiculous. No one likes being taken.

[@blythegirl4348]

Agree with you 100%!

[@tarreemhacaruso2687]

Especially when the quality isn’t there

[@makeupabsolu]

I am so happy they are falling apart , this is the day i was waiting for , for 10 years , i worked for LV and after that i understood what "luxury" is all about ....i will celebrate this moment for THE REST OF MY ENTIRE LIFE !

[@Chickadee_]

😂 don't we love when the universe pays us back!

[@lvettesonai]

The fall of commercialism and greedy powerhouses.👏🏽

[@wuhao380]

I worked for LV as well in the past. And after I learned Bernard bought all those brands and try to a “luxury “ tyrant , I was like there ought to be a day for his falling. It’s coming.

[@Cauldron6]

Thank you for your POV, I find it so fascinating to see what the opinions of people who worked in this world!

[@wuhao380]

@@Cauldron6 they are greedy ass ppl and don’t care about neither their customers or employees , period

[@SuperEtab]

I am fortunate enough where I am position that I could potentially afford some luxury items. I remember lusting over certain items over the years particularly Rimowa Luggage, designer leather jackets, shoes etc. However, when I compare what prices used to be to now, it makes zero sense. It’s pure greed, and far above inflation. It’s funny how when you can finally afford some things, your mind shifts and you no longer care.

[@wardinahbahati]

Singaporean here! The luxury items are so expensive here esp cause they are imported in. Prices have gone up, while quality has gone down. And also, I think Covid has taught ppl to be more conservative in spending. Ppl tend to also spend more on experiences (ie: vacations, hobbies, learning opportunities etc) compared to luxury. Eg: recently, I changed my mind at last min to purchase a bag to pay for a course a few mths ago cause I saw more returns on investment with knowledge. Not to get too political here, but I do know of friends too who have cut back on shopping cause the tense political atmosphere right now makes us feel there could be dips in the economic market soon.

[@shadowguard3578]

25 years ago I could easily have purchased a Chanel handbag, or two, or three. I don’t know why I never did since I always like Chanel’s classic flap. Now, there is no way I will spend the current price on a brand new classic flap. Chanel and other luxury designer brands don’t want me as a customer, I’ve been priced out. I’m not their target market which is their loss not mine. The money I save can be spent on experiences and many other mid-range brands and I’ll happily buy their products.

[@seabreeze4559]

and they're mean.... why try?

[@KarinaSwan]

Good rational thinking. 0lease tell me why you never bought when you could've (I'm curious), I'm sure if you ask yourself that now and think about you'll know the reason 😊

[@shadowguard3578]

@@seabreeze4559 yes so I heard.

[@shadowguard3578]

@@seabreeze4559 👍

[@shadowguard3578]

@@KarinaSwan once I posted I did wonder why I never bought one! In the 90s I bought a Versace mock crock leather coin purse. I went with a friend and the SA wasn’t friendly. I don’t remember if it was before or after I bought the Versace coin purse, a well to do relative of mine explained to me that she doesn’t understand why the Chanel boutique treats some people poorly when it shouldn’t matter who is buying their bags, it should not matter if a person is rich or had saved up, money is money. She believed (generally we all do) the boutiques should treat all customers well. I didn’t ask my relative if she was talking about her own experience or just generally… I didn’t pursue the matter. I’m wondering if I felt intimidated and that’s why I never went to the boutique or department store to buy one.

[@Cauldron6]

The crash of the luxury industry cannot come quick enough. The greed is incalculable.

[@seabreeze4559]

stock buybacks are legal fraud, the whole thing would drop like a rock overnight if those were banned because they rig the price up for the public, stock options for CEOs too

[@MrSincerity88]

Kinda sucks when ppl say things like this. Theres people who have been in those stores as sales associates who are hardworking people who depends on the customer. They don’t control the market and prices

[@tuttuttut7758]

We have been saying it for the past 2 years. It’s finally happening and I am here for it

[@luiszoccoler3619]

You forgot to mentioned that even rich people are enjoying wearing fakes. It is the new thing in the USA and Europe. It is thrilling to buy a fake one and wear it and make everyone believe that it is real. I do this, and no one dream to say i am wearing a fake. I seat in functions next to managers from Hermes’ stores and others and they do even see a difference. So why one would spend all that money in objects, lets donate the money to people who need food.

[@marieaimee5713]

1) People got smarter realizing that paying these prices for luxury items is not worth it (only paying for the brand name) 2) Luxury became unattractive due to social media / overflow of people wearing the same items/brands 3) Not feeling safe anymore wearing luxury pieces 4) Wearing luxury brands as a status symbol outdated and often done by people who can't afford it 5) Lifestyle changed, people prefer to stay at home/don't go out as much > no reason to buy/wear expensive occasional luxury items. What used to be special or exclusive, maybe owing one or two pieces became a luxury mass market, available everywhere, overpriced while not providing good quality. The value for money is simply not there anymore.

[@buntyjoy1800]

People will still drop money if they think its worth the money. "Luxury" is no longer worth the money.

[@tanechkaamericanochka4839]

Hermes Kelly and Birkin are still very desirable.And they are great on second market ♥️👩‍🦰♥️

[@MuseintheCity]

I've soured on luxury bags, the whole experience isn't luxury anymore. Long queues and waiting lists, bad service, bad quality, ridiculous prices. In more ways than one, luxury houses are telling me they don't want my money. I'm more into contemporary brands now: Demellier, Polene, Aspinal, Le Tanneur and invest the rest of my money in my stock portfolio,.

[@JohnJohn-eq7rg]

100% agree. Also, the public don’t ‘idolise’ celebs like the past (especially gen z’s). This has huge impact on marketing.

[@dennisbkkam1580]

My priorities have changed. I am fine to buy pre-love luxury bags, and thrift clothes, and re-wear what I bought years ago. Besides that, I truly think is crazy to pay thousands just for a bag or a shirt. Also when I see there are so many homeless people and people struggling with their finance, this even tells me to be grateful and not spend money for unnecessary things.

[@RogueNinjaChef]

I've been priced out years ago. I buy custom made bags for $200-400 USD with thick quality leather.

[@atana117]

Ooo who’s the company?

[@StarlightBibi]

I am currently looking for custom made bags too.

[@seabreeze4559]

tell us how we request a bag, what specs do you ask for and why? would be great if sophie could interview you about it actually

[@laughmasterk3552]

I know a couple of mega rich people , they have a lot of luxury stuff. But, even these people are not shopping at one brand all the time. They're buying once a year in every store, so what's a point to count on them? They're not gonna shop everywhere every day. To be a snobby to middle class is a huge mistake. They will feel it sooner than we think.

[@brittdenise1200]

Between the price increases and working from home more, I haven't made any purchases in over a year. I'm actually considering selling some items I don't use anymore.

[@mireille916]

For me the breaking point was the news from couple weeks ago regarding Dior bags. The fact that they are worth fraction of what they charge. They are basically not worth buying, you're not paying for quality. I can afford luxury occasionally buy I will stick to buying reps. I don't want to pay my money for something is not worth it in terms of materials. And don't get me started on this Hermes mind games. I am not going to demean myself to have an opportunity to buy a bag.

[@EXOmakemeHorololo]

I'd be curious to know why people seem to think it's news that these sweat shops exist in Italy? I know for fact this situation started in the late 90s and early 2000s. There already was the exact same scandal 20 years ago

[@veronicamcelprang5010]

This is so timely! Last year, I looked at Hermes stock and thought it was overpriced. Now, I feel vindicated. Thank you, Sophie!❤

[@veronicavenditti3614]

I'll always love my Burberry trenchcoat 🇬🇧💝

[@OmegaMacheteStorm]

Same. I have two ❤

[@LeylaPeeran]

I love luxury brands and have for a long time but as of late and since the pandemic, I just feel like they are all sickeningly wealthy billionaires and their shareholders and will do anything to gouge the middle class for more money, for greed's sake. I kind of all want them to crash and burn at this point. Let's return to actual, local artisans making beautiful pieces out of their little boutique shops. Thanks for sharing this video! Love you Sophie! x

[@blythegirl4348]

Wow, I was just thinking the same thing! You are good at writing and I'm not. I feel the same way you do! Shop locally made products and don't support big business.

[@Ofeliaviola]

All of these are exactly my thoughts and they started to float in my mind since the pandemic too! I couldn’t have said it better.

[@incognito8763]

Luxury retail in the UK is dire because local customers now buying in Europe tax free, cost of living is very real and affecting aspirationals, tourists buying in Europe instead of UK. It’s very grim and no light at the end of the tunnel….

[@SpeechyTx]

I can defintely see This! I’m an American that holidays in Europe twice a year. We totally go to see the sites and go tax free shopping. We will be in London this December and because there isn’t any tax free there anymore… I will be making my bigger purchases in Italy instead.

[@MayaKabat]

This bubble affected my sales as an artist as well. The art market has slowed down seriously.

[@Sarah_RDG]

Something to also consider- the downturn of tech companies, and the rise of AI. In my field (tech related- video games) our company was shut down right before we released our game- and thousands of people have experienced layoffs as well, particularly in the tech sector, for the same reasons luxury are seeing a downturn- people spent way more on entertainment while locked up during covid and now every company is trying to please the shareholders by decreasing loss the easiest way possible- dumping employees, that likely were also buying these luxury items. Because of high competition, I haven't been able to bounce back and I've been looking since April. AI was also heralded by CEOs as this incredible solution to their problems, and it turns out people aren't as excited about it as they are- why would we be, when it's meant to replace our jobs? So a lot of that investment right now is not paying out, and is affecting stock prices.

[@seabreeze4559]

same thing happened in the great depression

[@AKBBags]

Yet some people think the economy is the best it’s been since 2020. Hmm I haven’t bought from luxury brands for over a year now. Not worth it anymore to me.

[@ThekimG313]

The economy is good in some countries as far as opportunities but the price gouging & greed from these companies has made it hard for us to see it .

[@AKBBags]

@@ThekimG313 Couldn’t disagree more with you.

[@KarinaSwan]

​@@ThekimG313not sure what you mean about opportunitoes. There a lot of things that go into world economy and a country economy. And today's economy isn't stable (everywhere). Yes, some people have risen in some small businesses in the last 3-4 years, but that can happen pretty much any time due to other things. What I keep reading about more is the fact that there are a lot of bankruptcies (actual bankruptcy of companies that have existed for decades), lay offs, even in IT sectors (which tends to be booming on the outside) and more. Not to mention world events always affect everything around. No, the economy isn't great.

[@megaplatineable]

I think that luxury goods are going down for the reasons you mentioned but also because : - There are less occasions to wear luxury : less brand events, less posh parties - Leather quality is now often close to cardboard squishiness - Shops staff are increasingly stiff and snob - Designs are outdated - Brands are less idealized, the designers behind big names are often working class childrens or even raised in misery like Gabrielle Chanel and were despised by middle-class on which they now take revenge with total lack of class, on their wallet. - It is now known that poor workers exploitation and children mishandeling lurks behind several luxury shelves.

[@blythegirl4348]

So well stated!

[@LadeeHaha]

Excellent points! In USA only places where I still see people dress nice are in the nicest areas of major cities like around 59th/5th Ave in NYC, or in Palm Beach. Outside of that, no one seems to care or bother! Those are also the areas where there is a noticeable wealth gap than anywhere else.

[@KarinaSwan]

Good points, not sure why 2nd to last would be the reason though

[@KarinaSwan]

​@@LadeeHahayes, but you can dress "nice" without being dressed in designer

[@ShaktiFlowww]

Why do I get the feeling that they tried to do some psychological manipulation with their price increases. They see their sales dipping. They don’t want people to think that such a powerhouse could fall and so they raise their prices to make the public believe that they are more than they are to make people think that they are untouchable and un able to be damaged by a bad economy. And it ended up biting them because it didn’t work.

[@seabreeze4559]

anchoring effect, yes I studied propaganda tactics, bernays etc.

[@hurretje5303]

Apart from the ridiculous price increases, the huge amount of counterfeits and everybody and their mother wearing the staples, such as the love bracelets and even the birkins, it also has become an enormous risk wearing those items out and about. Criminals have since long had their eyes on the socials and on the street. So, wearing "luxury" has become common, with some people thinking you're wearing fakes and potentially dangerous, when those of ill intent setting their eyes on you. I certainly have redirected my "fun money" to travelling and other experiences, no matter how much I like exquisite design and ditto craftmanship.

[@fay_zh]

the cost of everything is increasing while luxury bags are not the must. I would have less money for those….

[@bnb0510]

Burberry needs an entire makeover starting with the CEO Covid was the best time to invest into the stock market. If schools would teach things that actually make a difference in adulthood there would/could be many wealthy people out there…. While these luxury brands may be in a downward spiral right now they will rebound eventually. People will forget that they literally and purposefully scammed the public and took full advantage of the situation at hand. Can’t blame them. It’s a business. 🤷🏼‍♀️

[@seabreeze4559]

erm stop trying to make a quiet luxury brand more Catholic when the WHOLE CHARM was being pure WASP? Ralph Lauren is cleaning up, The Row too! more sombre fashions

[@kami_k7]

Very interesting video. I definitely think some of the price increases were ridiculous. I also think the younger generation of gen z aren’t really into luxury, not like millennials. I haven’t bought a luxury handbag in a while and have no plans to buy one anytime soon

[@TheMsjenna]

Disney may not be luxury like Hermes or Chanel but they pulled the same thing. Wondering why their numbers are down huge in the US. The crazy prices! It was cheaper for us to go to Disneyland Paris for a week than stay here in the US and go to Disney this summer. Plus the bonus of going to Europe.

[@SophieShohetOfficial]

No way! This is crazy, thank you for sharing 🙏🥰xx

[@itsjusmeqtpie]

Have you seen Disney movies lately? It’s obvious why they losing money😂

[@hautepinkrae8084]

Hi Sophie, well I think most of us have been waiting for this news to come out. We knew that there was a recession, although it wasn’t being spoken of. And we knew the brands could not be doing as well as they said they were. Great information, Surprising as it may be. I feel this next period Will be very interesting and I can’t wait to see what’s gonna happen. My benchmark is always Chanel, and they’ve gone so overboard. So let’s watch and see what’s gonna happen, the fireworks are here, kids! And you are wearing my favorite color!😊

[@SophieShohetOfficial]

Such a great comment Rae! Yes, I think this could be the start of something 🫣xx

[@Chunkyshoesuk]

I think the easy access to good quality fakes is also what is having a big impact. Not only are they loosing the customers who once would have saved to buy the authentic bag which was also once accessible with some saving (not accessable now with the crazy prices) but also does anyone want to pay £5k for a bag when the person next to them on the train has a near identical ( to the untrained eye fake bag) they got at a fraction of the price and potentially has the same or better quality too. Do you think all the hermes bags you’re seeing are real? I dont buy fakes but they are everywhere and its just taking the magic out of saving and wanting to the real thing. It is for me anyway

[@seabreeze4559]

dupes are sometimes nicer, similar style but can be more tasteful

[@channelnamehere1402]

I'm sure fakes are one thing, but I also think the premier luxury brands are becoming tacky for the middle/upper low class, especially when you take into account the drop in quality. 10 years ago when I saw someone with a Chanel bag I thought "wow they must be rich and elegant." Now when I see someone with a Chanel bag I think "either they got more money than sense or neither."

[@vscents5674]

It’s been a while since I’ve watched your videos. You are always so insightful and smart❤

[@panjusu]

Very informative. Yes the price of luxary even in preloved market are falling.

[@trinitysweet1]

Politically the western world is doing away with the middle class. You are right, the middle class is there biggest customer base. The world is forever changed and we have to adapt. Brands are losing their charm. Necessities eill be the focus.

[@danaeko5637]

Even if your social cycle is vast, people are struggling. I'm reluctant to carry an expensive item when I know some or many of my friends and colleagues have financial difficulties. Therefore I don't need to buy expensive stuff nowadays because I know I won't be wearing them.

[@wuhao380]

I think that is so wise of you.

[@seabreeze4559]

dupes for days

[@Twertyuu]

I think maybe also part of the reason are some of us who buys these bags already got the "IT"/classic bags from these brands and the new designs did not entice us and the current "Quiet Luxury" trend also meant higher possibility of repeating the clothing items because they are much easier to mix & match.

[@FeisReality]

I think more people are looking at buying a midluxury bag instead. I know that many of those bags are still of good quality and some are even produced in the same factories as the big luxury houses. People don’t like to feel like they are being ripped off.

[@NA._]

Burberry always was an upper middle class brand, so to raise prices is absurd, since that bracket gets more entries of companies targeting that segment. The higher luxury brands who want to retain their exclusivity should just have entry level pieces for the middle class, and then their premium, uber stylish pieces with eye watering prices for those customers of theirs who want the their exclusivity obvious. I think Hermes has done a good job of that while still retaining the quality which makes the middle class shopper not feel taken advantage of. Chanel is a fail in that department as their non haute pieces are poor quality.Huge across the board price increases are always a huge mistake because, in the end, money from wealthy or middle class customers is fungible money, and companies should not be chasing any of it away.

[@seabreeze4559]

they didn't even lean into Sloane Ranger WASP stuff but rapper style street fashions.... who wants those?

[@Jbal8924]

Great video - so interesting! I’ve noticed that Hermes has more bags available on their website than they used to. Obviously they don’t offer quota bags online, but canvas bags are consistently there where that wasn’t necessarily the case in the past. I’m guessing that the lawsuit may have something to do with it, but if the company’s sales are down, that would also make sense.

[@Jp22524]

Thank you Sophie for this video that confirms what I have been feeling. I’ve been seeing the prices of luxury bags are constantly increasing. So when I see the prices, I say to myself “I’ll wait” and put off buying. They keep increasing, well I can enjoy what I already have and spend my money in other ways ❤

[@dva5610]

Hi Sophie, thought you should know that Hermes sales are up 13% this year 😊. The Row is also doing well with 30% YoY growth. Misinformation can be dangerous xx

[@veronicavenditti3614]

I read it too, you're right

[@SophieShohetOfficial]

Thank you! I’m going by what Google is telling me though, including their share price as of the 2nd 🥰xx

[@pinkbunnies-b3z]

I’m sure miu miu is up 90% as well! Gen Z have got the cash to splash and they’re paving the way!

[@User9781yt]

Let’s be honest, we all know the majority of those sale are birkin baits people don’t really need or like in order to score a bag. Purely manipulated because people are still willing to play the Hermes game

[@tengoodquestions]

@@pinkbunnies-b3zwhy is that?

[@evamin24_63]

Loved your video as usual. I'm not surprised as i think brands have become so very greedy n over priced. They don't know when to stop or do n are cutting off their nose despite their face. It's crazy but not surprising 🎉Ev

[@Magarita810]

Sophie the reason why Hermes are not doing well is because their biggest consumers the Chinese are not buying their goods like before because of the so called controversy over the customers buying loads of Hermes items and not being offered a bag.. Has for other luxury brands who their main targets are the middle class (especially in the west). However, with the price increase they are alienating the part of society. Remember there has been this rumour going round allegedly that rich women in certain parts of the world in the west carry and buy fake Hermes bags. So who are their market?

[@STAlife8]

Its no secret that some of these top luxury brands have made it their mission to kick the middle class out of their stores. I think what we are seeing now are the results of those efforts. This is that initial drop-off. The middle class have become disinterested, while also not having the money to spend like they once did. Now we will have to wait and see if in the next 5 years those stocks go up again, based on mostly sales from the "top desired %" of clients. Or will they continue to fall and ultimately fail at their plan. Personally, I hope brands like Chanel fail. We (the middle class) can become loyal spenders elsewhere. 🤷‍♀

[@Cloudburst2000]

I honestly don’t know that I see them recovering to what they were previously unless they make serious changes in their product. I have friends who are very wealthy who are refusing to buy high end bags because of the poor quality. They don’t want to spend big money for inferior quality anymore than middle class clientele do. Most of my wealthy friends are now just having their bags made to order by leather artisans.

[@StyledByGwenny]

Greed HAD to play a big part in those price increases. There's just no way they could be justified by inflation or scarcity of materials. 🤑

[@bangs7769]

Prada stays at the top as usual. Mrs Miuccia Prada you will forever be a legend.

[@hhueter]

i've always said they can either have the spending of the top 5% or a mixture of both (for gucci i think it's 40% are the top income bracket, 60% the rest of us). if they want just that percentage, fine, but there will be a certain point where that top % aren't going to increase their spending.

[@christina8063]

YTD Hermes is actually up11.12%. At LVMH the liquor division is the largest part of their business and it is what has suffered the most in the 1st quarter. The fashion and Leather Goods division at LVMH in 1st q achieved growth of 2%, the perfume and cosmetics group had 7% growth while watches and jewelry were down in 1stQ. I don't think the luxury business is booming but I also don't see the ytd numbers are showing desperate times either.

[@NikkoleNikkolas]

Thank you!

[@LadeeHaha]

How much of that percentage is related to price increases?

[@someonesomewhere1385]

Yeah to say Hermes stock is doing terrible is a bit of a stretch if you look YTD

[@itsmirabisa]

I agree with this! Wish i would have bought my H stock in early q4 last year rather than when i did this year!!

[@asunbeam5479]

looking at just one day is actual insanity. and the past month, markets have been volatile in general.

[@kayeru4369]

Too greedy! And I’m scared to get robbed now so why bother making myself a target with an expensive bag

[@blythegirl4348]

NO kidding! In UK people steal watches, cell phones, headsets... bags are surely targets too! Who wants to get mugged for a bag! Carry a beautiful impostor bag instead!

[@amadamartinez4685]

So interesting 🤔 people being smart with their money ❤

[@jillmartin8255]

Hi Sophie!!! Watching you from sunny hotel balcony!!!!😊😊😊

[@SophieShohetOfficial]

I hope you both have the nicest trip!!xx🩷

[@sams3015]

I am going to Paris next week & it’s my first time in a major fashion capital place in over a year so I’m keen to see if I’ll notice it at shop level. Great video as usual Sophie. Burberry needs to focus on traditional I think & stop trying to be trendy. Its like they can’t choose between royal & roadman

[@flavialm1]

I believe one thing covid did to help this, was that we were locked watching videos non stop at home, so we were highly influenced to get these items, it was like an escape from all that was going on. Once we were let out, everyone run to get those items they covit for the past months, also we didn't know when the next lock down would be so we had to do it at that moment. Now that sense of urgency is gone and people's priorities have changed, Luxury is way at the bottom.I just dropped 5k on renting a kids buffet for my daughter' 2 birthday, because she went there on another birthday, loved and keep asking to go every time we pass in front of. No regrets about spending money on this, but I wouldn't spend it on a bag now days for example.

[@lvettesonai]

You are Spot ON, Sophie!! 👏🏽💥 I've turned my cheek at LVMH. Lately I've discovered gorgeous, high quality bags in MCM. I have been proudly showcasing my MCM Dessau Drawstring bag around town! 😍 Better made products and they are not as greedy. - LV and Chanel... I've had enough!!

[@NikkoleNikkolas]

She's way off.

[@SophieShohetOfficial]

Love MCM!!xx🩷

[@jaxvh]

I’m off to Europe in 2 weeks and was planning on picking up my first Dior. I just can’t after the latest scandal. I’m now hoping for the best at the designer outlets and if I strike out, there an LV shop somewhere

[@ndoucette9676]

You cannot even walk down the street without out being a victim with your bags. Not worth getting hurt.

[@africocoalux722]

The luxury bubble burst is becoming more and more of a reality This is why it’s imperative to look at “investment pieces” as items that you actually enjoy and truly like --that is the TRUE investment because you will genuinely enjoy it for years instead of having it sit in your closet collecting dust in hopes that it will be worth a lot in the future. Everything has become so easily accessible and so easily duplicated that things that were once seen as exclusive no longer has that spark. These companies has become so grossly greedy and now it is biting them in the tails🤷🏿‍♀️

[@seabreeze4559]

I think custom fashion to body type, colour season etc has made people crave the same Uniform less.

[@rachelworton7423]

Been watching your videos for 6 yrs love love your videos I escape the family 😂and watch your videos while I’m in the bath with my candles and my neom oils x

[@LadeeHaha]

They are fools!!!! They though they were fooling us, but they ended up fooling themselves 😂

[@laughmasterk3552]

So true 👍

[@smoutchie]

Hi Sophie ! There is also the diamond market that took a plunge so it definitely has an impact on stocks.

[@evangelinetan5415]

I love luxury goods, the last time I spend on luxury item was 2022, Barcelona LV store. Since I am now retired , my lifestyle have changed, luxury items are no longer needed, sad but it’s the reality😊

[@Potter_Mischief]

They got greedy and their quality went down. 🤷🏻‍♀️🤣 new mid range priced high quality brands are the new luxury so… maybe they have to have a proper meeting to regain their strength, the main issue I see is luxury brands stoped being luxury as well with all the social media and people wanting their bags, they went for it, quality went down massively and in end of the day they not luxury anymore 🤷🏻‍♀️ they fast fashion. So that’s another issue. People want to buy quality and most of those luxury brands do not give that and haven’t for a long time now. And yes middle class is who supports society, not the mega rich who avoid taxes, not the ones who get support from the government and they trying to irradiate the middle class for a long time🤦🏻‍♀️ politically and the governments are so greedy and stupid makes no sense 🤷🏻‍♀️ but let’s not go there haha great video once again Sophie 👌✨

[@MsLS8]

Just attended Hermes sale and I think I was surprised how little people normally bought - at least I have not seen anyone leaving with more than 1 bag

[@bridgettecummings6914]

I have always though Hermes were crazy for not selling Birkin and Kelly bags. They want to be exclusive??? Well, bags being $12-14K makes them exclusive. Not very many people could or would spend that much on a bag. I never understood why they have quota bags, etc. They have priced themselves into exclusivity. Anyone who can should be able to walk into the store and buy any of their bags they want.

[@ashleylala4293]

The escalation of corporate greed has been utterly insane the last 10 years. Ethics and decency are completely out the window.

[@JustCraftyChantel]

The prices went up to fast. I have bags that I bought in the last 5 years that are $500 more. I can’t bring myself to buy. Because it’s the exact same thing for more $$$.

[@momoyome]

I saw Nicole Kidman in Balenciaga at some film festival. Disgusted. We kind of expect that of Kim K though.

[@blythegirl4348]

KIm K would sell tampons if she got enough money. That family has no shame.

[@seabreeze4559]

apparently she was mistreated by her own family so she should know better

[@annestancil7214]

Great video, Sophie--in addition to all the things others have said, I think the pre-loved market has had an impact as well. Why play the Hermes game when you can go to great places like Luxury Promise and others to get exactly what you want? I think there is a glut of inventory in the pre-loved market at great prices.

[@gorgeouss79]

I took a year break buying luxury and when I went back to look at items I was shocked at how expensive everything has become!! Even the lower end luxury brands are insanely expensive (Celine, Loewe) 4k for a bag is ridiculous!! I’m out..

[@melissaV354]

I love your videos Sophie! I think that lawsuit really affected Hermes. Maybe people started to wake up about spending thousands just to be offered a bag you might not even like 🤷🏻‍♀️ I think LV’s problem is that they’re rereleasing old styles that people can find on the preloved market for much less. And I’m saying that with LV being my favorite brand. And Chanel is just ridiculous. Their quality is not with the price. Just my two cents 🤣

[@supernova9243]

World recession is coming folks. Stay safe out there and spend safely ❤️

[@LivPoxleitner]

RMS, there was a 40% drop from NOV 2021 to June 2022. this is when the stimulus checks stopped and people started pulling money out of the market. did sale slow down too then? the stock since then has recovered and doubled its stock price from july 2022 to sept 2024.

[@aquamoon88]

I'm surprised people even buy these bags at all now. They say chanel and hermes bags are good investment bags but my friend kept reducing the price of her classic flap and still no buyer. Same thing happens everywhere for hermes. The bubble has burst. I no longer have any desire to purchase these luxury bags.

[@aquamoon88]

These bags got overly popular and common you see them everywhere fake and real and that's when you know it's the end of it all for these luxury brands.

[@JJ-od6nt]

Big mistake by the luxury companies to outprice a segment of their customer base. That base has realised that there are other beautiful bags in the market that they never paid attention to earlier. For eg, now that I'm loving my Polene and Manu Atelier bags, I'm not going back to spending thousands on Chanel anymore!! And because they made the prices so obscene, it's also become 'uncool' to carry 'designer' labels.

[@marshaltemple7610]

Becuase luxury is made for poor people. Chanel is a rare example becuase they don’t actually want poor people to own it.

[@MsLS8]

I think the other reason is also that the Chinese government policies that they pushed down on their population are now giving results where they made people not to wear fancy clothes and watches etc to work - not just government jobs but also private sector🔥

[@daviddd_edgar]

I totally agree! Also in my opinion, my perceived value of the products these brands release simply don't reflect the value I associate with the brands, regardless of the quality.

[@lindamurphy3969]

I think one problem with luxury brands are they’ve raised their prices but many have reduced quality. When you can buy trousers or jeans at TJ Maxx (TK Maxx) that feel like better quality than luxury brands, that’s a problem, unless you only care about a label.

[@papayachalice75]

I think what you described about Covid may not be accurate. At that time, governments gave out free money round after round. A lot of people didn’t really need those free money. That’s why my friend at LV told me there were a lot of first time buyers during that time.

[@hovsepii7718]

Thank you Sophie for always giving us the latest news and info in the luxury world 🩷🩷 you're my favorite person to watch on KZbin !

[@emanr7502]

I think luxury brands knew this was coming, and thats why so many of them expanded into hospitality. Many luxury brands now have cafes, hotels, and residences, because they saw this coming... i realized when i saw mercedes and givenchy residences in dubai

[@emanr7502]

These companies have so many tools at their disposal, I don't see this being the beginning of their demise, just a small blip along the way

[@sarin216]

It's not the economy, per say, ppl spend on what they want. The in your face price increases on a constant basis is their fault. Plus, new emerging brands are taking customers as well. The fast turnover in styles are also an issue. Why spend 4-6k for a bag to only see it become saturated online, then called basic after a yr or two

[@seabreeze4559]

resellers crowded out genuine interest

[@roseyscott3811]

Loved this informative video! I think you are spot on correct.....luxury houses got greedy. Now the consequences are beginning to show. I love luxury handbags in particular, however, I am not buying right now, and I don't know when I will begin again. I have been watching the resale market, and there are discounts I've not seen before. The resale market, I believe, appears beginning to be impacted. What do you think?

[@bydanak]

Great lesson for luxury brands. They needed to feel it.

[@danndeelion]

The problem about brands focusing on the mega rich is that the mega rich DONT like SPENDING their money (hence why they are rich!). When they DO slam down cash its on the top of the top QUALITY, theyd rather spend 10K on an extremely bespoke bag or clothing ensemble that is tailored too their needs. They aren't BROWSING the plethora of bags at LV adding 20 to their cart and paying. They CERTAINLY dont forgive the "lapses" in quality control at Chanel!! Its the most ridiculous fallacy that these mega brands cocked up in their heads. Its the upper middle class that is their bread and butter and you are literally telling them to eat cake. Wait for the heads to roll.

[@kong_kwan]

What goes up must come down. And there is no exception for luxury.

[@VysPueblo]

Absolutely love the coat you are wearing! and the *xbagy* bag !

[@sashanj848]

All the Karen’s on here hating on your video! But you’re totally right all these supposedly luxury brands are severely hurting. Yeah there may be a few here and there that are making big purchases. But if you go to any Louis Vuitton store in New York City where I’m at. It is pitiful people are not going into stores these. They are turned off by the service and the high prices. I don’t even want to mention Burberry because that store looks like crickets. People passed by and people do not care for them anymore. There’s no creativity and it’s the same thing for the last 10 years. Luxury accessory brands aren’t luxurious anymore. Especially Dior.

[@blythegirl4348]

Agree with your comments 100%!

[@seabreeze4559]

when a brand caters to tourists like burberry it declines among the local populace

[@mocab3545]

Great video! They’ve succeeded in weeding out the aspirational customers! I used to buy designer bags a lot now I literally don’t feel the need to buy any more stuff. Instead, I literally get excited over a good quality pair of trousers from Benetton.

[@aaiirriiccaaa]

Burberry has always felt so casual to me. I think it's the check print.

[@Cloudburst2000]

That’s their version of a monogram print. IMO, monogram canvas is always casual whether it’s LV, Burberry, etc. I think Burberry’s problems is that many of their bags are just downright fugly. The styles are just bad.

[@aaiirriiccaaa]

@@Cloudburst2000 agreed

[@jbell6852]

Plus there’s too many versions of Burberry “like” print in everything which makes the design oversaturated.

[@craig6363]

The quality is horrendous, esp LV.

[@rosepond7178]

The quality went down and prices were rising up, people had enough 🎉

[@nataliea1866]

Loved the video ! Curious on everyones thoughts on the fact that brands like Chanel have only increased there prices and have never decreased. 1. Do you think prices will ever go down or will they just keep going up over time? 2. If they do keep going up, perhaps it is a good investment opportunity to purchase now and sell in a few years?