Luxury industry faces crisis: China slowdown and soaring prices

[@gero4415]

people cutting back on wasteful "luxury" when times get tough? what a shocker.

[@bdegrds]

Yet "poor" people have a $1000 cell phone, and all the other latest tech, $30k leased car etc. Obese etc. Thats a very different kind of "poor"

[@seymorefact4333]

not in the USA...we pull out the CREDIT CARD AND SWIPE ...to $50 trillion in CONSUMER DEBT! AND MAKES UP 80% OF US GDP!

[@lg206]

That’s because the customer base of the large luxury companies are aspirational spenders. if it were truly people with money, a small bonus or inflation wouldn’t stop them from buying the handbag they want.

[@andrews6617]

Rich people pause before the sales come.. Recession is their favorite time to buy. Wanna bees .. they buy high.

[@WudeAlshorbaji]

*xbagy* Bolsa réplica 1:1 con imagen reflejada, resistente y resistente al desgaste. Me gusta mucho.

[@socal1003]

I think people are just realizing how low quality and overpriced these so called “luxury” items are.

[@andrews6617]

@@socal1003 naw .. rich people smelling a big sale coming. Assets cheap ... Buy buy buy. Usually a sign before recession.. unless Trump saves the day.

[@stache1954]

Especially shoes.

[@lg206]

Exactly. It's one thing to have an idea of high margins. But I cant imagine knowingly spending $3000 on a Dior bag that was made for $50

[@edwins.9609]

If I pay a high amount I expect it to be made well. If I find out it’s Chinese/ child labor BS I will not buy it. That’s why Chinese give value to American made things. Usually made a little better imo

[@MrBearcatjew]

in japan they dont use the word luxury since everything they make needs to be of quality, steve jobs talked about this alot when at apple

[@MsVictory1945]

Because people are realizing that the prices of luxury have gone way up and quality way down. The scandals about Dior selling 5K bags when they are made for $57. They use the same slave labor as walmart does!

[@Ray-iz7tv]

Yep, and selling goods at ripoff prices.

[@hazeldavis3176]

@@MsVictory1945 That was the final straw for me. I've seen too many times how often luxury brands have been 'shocked' to find out they're using slave labor. I now buy artisanal purses and I'm quite pleased with both the quality and cost.

[@bella4135]

@@MsVictory1945 the luxury companies got so greedy, it’s ridiculous. People are over it.

[@edthelazyboy]

Many luxury brands depends heavily on middle class aspirational consumers to stay in business. The middle class are earning less and spending more of their income on necessities. There are only so few wealthy people in this world and they make up a small portion of many luxury brand's business.

[@daliaa5294]

Everything goes up except our salaries You expect us to buy luxury when we cannot pay rent and buy food 😂

[@huas5350]

Who is your so-called "us"? 😅

[@seymorefact4333]

😭😭 USA...we pull out the CREDIT CARD AND SWIPE ...to $60 trillion in CONSUMER DEBT! AND MAKES UP 80% OF US GDP! SPEND more in BAD TIMES! thats the AMERICAN DREAM...PAID FOR BY CREDIT!

[@Lommy9999]

The Louis Vuitton hotel in Paris is so vulgar. Why would anyone want to stay inside a huge suitcase? 😂

[@chewie94116]

Luxury items are not needed for daily living. Everyone is buckling down, especially the people in China when their homes drop 50% in value and they are in the red

[@MartinD9999]

0:33 Wow…if I can find an insider that speaks this clearly and strongly about a Market’s future, I would definitely follow them.

[@Curubey29]

I like her honest take

[@hildredscali1754]

Because times are harder and you would be better off investing that money in something else. Early last year, I wanted to get a Hermes bag for almost 25k, was convinced by a friend to get a decent F.A and invest it instead and now it's almost double. Don't blame China, blame common sense.

[@kevingood-r3n]

💯💯

[@MandyLuke]

nice... this makes a lot of sense... been considering going into this stock thing for sometime now. heard its a nice way to make money bts... how can I get a good f.a? and how expensive are they?...

[@hildredscali1754]

Well, you should start by looking out for those from credible firms and good track records. Also, make sure the person is licensed. Personally, I use Michael, Allen Eckrich. He's good and you could also look him up too. And they're usually way cheaper than you would expect.

[@user-zl5gn5lg6]

It's a small world! I recently met him at a conference my office organized just a few weeks ago. What are the odds I'd be scrolling through an unusual post for me and come across this thread? Really small world!

[@oceanwave4502]

Western Europe's industry is failing (deindustrialization). They have to hang on other sectors such as tourism and fashion and luxurious products. But given the inflation, fewer people desire luxurious products, which definitely makes Western Europe's economy decline even further.

[@felixscamp]

Buying stuff that no one really needs, it’s a stupid look at me attitude, so glad I’m absolutely not interested in any of it

[@LaiChingLeong-p6i]

Not a bad thing to pivot away from luxury brands over time.

[@AaronJayR]

I thought it was Meryl Streep at first glance

[@ts121084]

Or Penny Marshall!

[@a13xdunlop]

Luxury is no longer luxury, they are now competing for youth who focus on superficial brand names. The luxury market is now looking for quality. Just take a look at the extortionate Gucci Advent calendar and you will see where they are going wrong. The market is still there but the quality is not, that is why folk have moved on.

[@Rrrrrrrrrrrr001]

For years I have been saying this to friends and I felt so ignored.

[@spyderativ2438]

Times have changed and consumers have woken up. The age of conspicuous spendings are over.

[@sharonh2991]

I don’t think that’s true. As long as there are influences touting luxury brands there will be followers wanting those brands. She even mentioned that Hermes had double digit earnings. I think it’s more the LVMUY brands, their quality just isn’t what it used to be and the value isn’t there.

[@jermainec2462]

Almost over ...😂😂

[@xtrey19x]

No it’s not. People are just broke.

[@lamentate07]

@@sharonh2991 The really high end stuff will always do well. It is the middle to low end premium brands that are struggling.

[@belleblanch5374]

Luxery items are just waste of money, 99% don't hold its value.

[@MartinD9999]

The filthy rich don’t worry about everyday items like clothes and shoes and purses holding value for resell purposes, that’s something only poor people think about.

[@hakjie1112]

@@MartinD9999 If the resale of it doesn't hold its value, the 2nd hand items would be too accessible to purchase and not as exclusive, but exclusivity is exactly what the rich are looking for. So it does matter for the rich.

[@trapmuzik6708]

we don't buy it for it to go up in value we have investments for that we buy it to wear it and make a statement I have arrived

[@Bestmepossible]

The hotels are loving it, and with the decline of Airbnb, they will definitely raise their rates to punish us

[@Ruth-os4mi]

Lower the quality. Raise the prices.

[@OmegaMacheteStorm]

Ms Brown reminds me of the Miranda Priestly character. Well, not her attitude as she seems lovely, but definitely how physically the character was played by Meryl Streep.

[@dyskelia]

They don’t sell quality anymore…you’re just paying for a dumb label. Pass.

[@paulgilliland2992]

They need to work on their attitudes especially at Chanel and Hermes . If you walk in and look around they’re looking over your shoulder to make sure you’re not pilfering.

[@OllieintoKickflip]

😂😂💀😂😭😭 Pilfering? I like it you damn pirate 😂✊🏾

[@rlkinnard]

making sure things are not stolen is good business if you allow the public in.

[@wolf-yw9wk]

one of the big issues is that the fakes are made at the same level or even in some cases better now. there are countless youtube videos of people dissecting products and being blown away by how poor the quality is. these were things that in the past there wasn’t really much access to. now these brands secrets are out and people can just order some knock off that is made w the same quality leather etc but doesn’t have the 2000% mark up. most girls i know all explain this at this point. they only buy real if they think the value will go up otherwise they go cheap.

[@DebShops-e3v]

Yes…the price hikes along with the down grade in quality is a major factor for me which has contributed to me buying second hand bags from a few platforms. I also started buying a few mid range bags that deliver the same quality as my high end lux bags…..not a big difference in quality from what I can see.

[@JJs_playground]

I think people are realizing $5000 for a bag that costs $57 to make is just stupid. Glad she brought up that point of the sweatshop being used by all these name brand. Who still buys Ralph Lauren? Lol

[@rlkinnard]

if Ralph Lauren is bad, what do you buy?

[@daweigo6851]

@@JJs_playground did you listen to what she said?....ralph lauren one of the few brands to have increased sales

[@rlkinnard]

@@daweigo6851 While I wear Armani and Hermes for more formal occasions, I wear Ralph Lauren and Levis and Lands End when not working.

[@attila2246]

Ralph Lauren is still decent, just overpriced. If you put some effort in you can find things just as good or better at a lower price.

[@JJs_playground]

@@daweigo6851 yes, I did. That was a rhetorical question.

[@kevinhsu8184]

I guess Arnault has come to realization that China isn’t going to grow the way he had hoped it would. Golden goose has stopped laying its eggs so to speak. I bet he’s looking at India as his next target. But since India isn’t ruled by one party, it’ll take a long time for them to grow to what China is today. Not just Chanel has pricing problem vs quality, LV has the same issues as well. Ten years ago, a monogram LV keepall 55 costs around $1200 and today it’ll cost you $2200. Inflation rate for the past ten years is 34%. If you seen Pharell’s LV bag prices, they are absolutely insane! All I can say is good luck to Arnault with his aggressive pricing strategy. It’ll break LV brand eventually. Murakami collab this coming spring may help your bottom line for two quarters. What are you going to do for the fall and winter quarters next year?

[@seymorefact4333]

😭😭 USA...we pull out the CREDIT CARD AND SWIPE ...to $60 trillion in CONSUMER DEBT! AND MAKES UP 80% OF US GDP! SPEND more in BAD TIMES! that's the AMERICAN DREAM...PAID FOR BY CREDIT!

[@A-Ra1111]

China is actually abandoning luxury brands for local. Thus has nothing to do with growth. It's been reported all year

[@apt62]

Of course economy is the main factor but when luxury brands are charging $1300 for a hoodie and $700 for a t-shirt the Chinese ain’t dumb when it comes to money.

[@copa8]

India? 🤣

[@dapperboy]

I just don't understand the new design of LV anymore. It used to be classy, now it just screams cheap. I think many older generation customers have moved on to Hermes, Loro Piana or Brunello for their understated elegance. LV ruin their own brand with hideous designs.

[@sararichardson737]

Luxury consumption is in it’s death throes. Thank God!

[@mikegan9382]

Same as Skincare like La Mer. Consumer now have woken up.

[@wildbill6366]

People are waking up to the shallowness of these overpriced "luxury" schlock.. Buy quality NOT brands/labels..

[@kutiek9699]

You can only buy so much. Eventually, you dont have enough room in your closet. The problem is that there is too much stuff being produced. You can't really enjoy things you just bought before something new comes out. A lot of these fashion houses have over 10 new collections per year. The numbers have to eventually slow down.q

[@normantong3475]

The luxury player are too dependent on China consumer ..times are bad they are on their knee to wait and however this is a good lesson that luxury player have a hard knock on their head .. most of these players are too cocky and arrogant.. cherry picking Clients.. sales staff behave badly when customers entering the store they scan the clients pocket whether they can afford especially in Asia luxury retailer .. many watch retailer in Singapore the staff are one of this kind Remember this good times never last !!

[@vonnibrown4317]

Opening hotels, restaurants, etc. is not going to work either when your motivation is GREED! The hotels, restaurants, etc. will all be overpriced because they just don't know when to stop being so GREEDY!!! It's going to take some of them being on the edge of bankruptcy or total business liquidation for them to finally get the point!

[@waytooready]

Agreed 💯 Seems they want to break their businesses… What’s the end goal?

[@U23721]

Times don't feel tough, many could easily spend on luxury. The market and net worth are soaring for everyone with a 401K and after tax investments. Point is luxury goods aren't actually luxury, even the wealthy don't buy tacky branded clothes. Its for poor people to buy what they *think* rich people buy. More people are just realizing that and that's not good for "luxury" brands, but it doesn't mean the economy is collapsing.

[@a.w.b.9971]

The prices hikes on bags that were almost $1,000 cheaper a few years ago is definitely many peoples hesitation to purchase these days. Because what changed? Just the company looking to increase their profit margins

[@joeb8725]

Next will be cars then homes

[@manoftomorrow5987]

Cars are already seeing it…it’ll get worse in 2025. Homes in 2026.

[@seymorefact4333]

😭😭 USA...we pull out the CREDIT CARD AND SWIPE ...to $60 trillion in CONSUMER DEBT! AND MAKES UP 80% OF US GDP! SPEND more in BAD TIMES! thats the AMERICAN DREAM...PAID FOR BY CREDIT!

[@daweigo6851]

Car sales allready down in many markets

[@vikingspud]

I had a great project with an Italian luxury client from last year into the June this year. Suddenly their budgets for outside vendors dried up. It's a tough time for the industry.

[@Powaup]

I enjoyed this interview

[@lindamurphy3969]

I’ve stopped buying luxury for the past year. I’m fine spending more for a quality luxury product. However, luxury clothing, handbags, shoes, etc. have gone up astronomically in price while quality has diminished. I’m not going to overpay for a logo. With the Dior sweatshop scandal, which probably isn’t the only fashion house doing it, I’m not going to participate in condoning that activity. The Balenciaga ad campaign was offensive. Louis Vuitton is garbage quality compared to bags from 15 years ago. I like nice things but I’m not going to light money on fire poor quality.

[@Phlegethon]

No one wants to buy your bag with a random label on it?

[@Shadowwalker1717]

Look at me look at me there is a logo on my bag, I am important, I am better, look at me hahahaha

[@sutats]

@@Shadowwalker1717 *LMAO.*

[@driftingsneakers7302]

I feel like not just luxury items are low quality with high prices.. even company like nike is the same price even tho the pricing isn't as much as the luxury, their quality are so poor with the retail pricing are always going up over the years

[@dapperboy]

This is awesome news! Greedy fashion houses raised their prices so high now they are suffering their bottom lines. Who would pay $1000 for a sweatshirt? Only dumb people really.

[@biscaynesupercars]

Obviously inflation and incomes not keeping up are a huge factor but also like what they said the quality just is not there for many of these brands anymore. A lot of luxury houses aren’t privately or family owned anymore, they’re under big conglomerates and are being designed and made in the same factories as everyday brands and most of these brands are still living off history instead of innovating with new and fresh designs

[@hemantishwaran5741]

Interesting video which gives some alternate explanations beyond the obvious China is not buying. Enjoyed the video.

[@Shay-ShayTV]

LVMH is also guilty of exorbitant price increases and a degradation of product quality. Why does she just call out Chanel? Maybe it’s because she owns stock in LVMH, still has close ties there and wants to promote the company to help her financial position. She speaks positively of Hermes of which LVMH owns 6% via secret purchase of Hermes heirs’ stock. Yahoo Finance should add disclaimers in interviews like this so that it’s clear we are being fed “news” through a heavy filter.

[@waytooready]

Interesting takes. How do you explain the drop of quality of LV? Is it due to overproduction? Thx

[@attila2246]

@@waytooready pure greed. They thought they could keep increasing margins by cutting corners. Eventually customers noticed and it’s going be very difficult to build back that reputation.

[@Shay-ShayTV]

@@waytooready I don’t know reasons for it, it just seems to me that the materials used are of lower quality and production is rushed. My speedy has a wire pushing out of the seem after just a few months of use. My friends multipochette’s cross body strap is unraveling and fraying after just a few uses. LV said they’d send it for repair (which would take months), but would not replace the strap. So choice was to be without the bag for an indeterminate period of time. Customer service has also slipped. No way you should pay thousands for a bag and a few months in have these issues and no viable and reasonable option for repairing or replacing a defective bag. LV ought to be ashamed of itself as these are not isolated instances. Social media is full of similar stories.

[@rockysouthflorida1707]

Elon. “ there will be pain!” Working people eat cake... I got 400 billion! Lol!

[@rlkinnard]

Why should opening hotels work? Hotels have their own problem; currently there is a surfeit of AirBnB in many places. Not NYC where it was banned, of course.

[@stache1954]

How many statement pieces does anyone need? Plus you can find well made high quality at a reasonable price if you avoid labels.

[@oneyee]

Buying and acquiring is overrated. Collect experiences, not tangible clutter.

[@A-Ra1111]

All year, it has been reported that Chinese prefer local to luxury.

[@jackjoules8983]

most of the luxury stuff Is made in China 😂

[@jyc313]

Local what? 😂😂😂😂😂

[@booneguy]

No worries. The spending will probably peak in 15 years again. The real estate market will probably be challenging for the next decade.

[@lawrencerobles6207]

I never understood buying a bag that expensive. Maybe because I am only a middle class person.

[@CasaBeltrauc]

Great insights in this video! KYLE is someone who offers valuable guidance and strategies for trading, helping individuals navigate the market more effectively, which can be really helpful for both new and experienced traders

[@VishalFaucet]

As a newbie, what should I focus on first? How can I start investing, and which platform do you recommend? Also, I’m new here-how can I get in touch with him?

[@CasaBeltrauc]

HE'S MOSTLY ON TELEGRAMS,⭐⭐⭐

[@CasaBeltrauc]

@KyleWenskiFA ..that's it

[@VishalFaucet]

@@CasaBeltrauc I would like to be part of this success... 💕💕I need to get in touch with him immediately. Thanks for the info 👍👍

[@GerardoRossete]

Fascinating insights! Trading crypto can be rewarding, but going it alone can be challenging. I’ve faced losses before and realized the value of working with someone experienced. Might be time to explore this approach!

[@007thematrix007]

the fake ones have same quality as the real ones ..... lolol 🤣 🛍️

[@pennapanews]

I'm just realised who's going to take all my luxuries shopping from me for free ???🤔

[@Emphasis213]

Luxury items should not just be a name attached to some decent quality material. You should get more for it and it should do more for you. Ie. A 25000 dollar hand bag better come with a set of clothing + watch+ shoes to match.

[@ClorindaSargi]

It doesn't matter where they are made. It depends on artisans and quality inspection. My family and I have bought 2 *amzrepe* bags in the past 3 years and I'm sure you won't be disappointed!

[@rosetown_]

Similar to what others have mentioned would have liked to have heard about the rise of fakes / knockoffs, if people find it looks just about as good as the real thing they seem to be happy to buy. Also about the slight shift to functional / practical apparel, bags. Like high-end recreational / outdoor gear, comfort / leisurewear, tech accessories, clothing like graphene etc. Would also say urban streetwear.

[@Mrrossj01]

Luxury brands are victims of their own success. The current rage is tomorrow’s trash. Fashionistas are remarkable fickle. Count on it. Junkoola rules. Buy the fake.

[@CoolHand273]

The irony is poor people have ruined luxury. That and cynical predatory capitalism.

[@DebShops-e3v]

I do not see the luxury brands being able to turn things around because these brands are mostly owned by a couple of big conglomerates like LVMH and Kering….so I do not see quality getting better because of the stock prices and the drive to increase profits every year.

[@WhitExNoodlE]

I just hope the price increases stop…

[@patricknacion3960]

Good !!!! stop with the over consumption

[@quang_xuezhongwen]

4:30 Consumers more prefer to spend money on Experiences (Food, Travel) than Goods.

[@Stephan-h7t]

I have been a fan and customer of LV since the 80's. Well, until they became a department store for the weird, the whacky and the alphabet soup people. Luxury brands need to stop focusing on the woke garbage and go back to their roots of quiet luxury, do away with all the garish labelling and focus on wearable/usable fashion and travel goods etc for normal people!

[@jy3ster]

Correction… Chinese simply started purchasing locally made goods instead of colonial crap made outside of China

[@daweigo6851]

Silly uninformed comment

[@ts121084]

And what about the 40% of made-in-China (crap) consumer goods that fill our store shelves in the West? Are we being colonized, too? Or is it colonialism only when Europeans and Americans dare to sell a product? Your arrogance defies description!

[@DillDough4u]

The main reporter should reconsider the top she’s wearing.

[@Chanchanlala]

Coach is re-surging again past few years. Tons of authentic second hand (LV, Dior, Chanel, even Hermes) flooding ebay and Japan thrift stores for under $1,000

[@TuxBearlux]

Will Lisa from BlackPink still date the son of LVMH if he becomes poor ? That is the billion dollar question 🤔🧐

[@mocheen4837]

He is a billlionaire and will never be poor. He could lose a billion dollars and still be ultra wealthy.

[@ai7783]

everyone moving to outdoor gear

[@LenaLena-ui1pk]

Money is on gold

[@ShamileII]

Wow, your guest is such a stylish chick

[@Kalfie-yv2ni]

The emptiness of vanity

[@callicordova4066]

I never fell for the "luxury" brands. Who needs that trash.

[@raulruiz5275]

Its ridiculous.!!!!!Everyone should be able to buy this fancy stuff. Last time I went to mexico City . Luxury is very affordable . It's super fake but affordable . I think that is the reason 🤔

[@lindapindabelinda3570]

Those ultra wealthy people were the only thing propping up our economy. For anybody who doesn’t already have a flock of chickens in their backyard, get them quickly or you are going to be hungry.

[@stache1954]

And then they die from flu.

[@21Ryoo]

I own LVMH for the long run

[@marksias6764]

Most are made in South Korea.for around $50.00 US

[@kaychua1262]

It’s not worth it’s not Worth It !,,

[@wadeconner3432]

Just buy a high quality LV bag reproduction for $200 from China ….

[@whitemoon5752]

China for one will come back and faster than we expect. 2025 will be the turning point if by Q2 the CPI data is positive and real estate is up by 10% it would be unstoppable. Reason is Chinese people like face, so luxury sits well with that cultural aspect and when you combine that with buying power then it is unstoppable for luxury.

[@rlkinnard]

i would not bet on it though Arnault is continuing to buy LVMH stock.

[@lamentate07]

No chance. Their economic slowdown is systemic, not temporary. Will take years to sort itself out.

[@bullion87]

they thought they can just increase the price forever

[@JSJE1990]

It’s almost 2025, are adults still so childish buying luxury to show off? Grow up kids.

[@JayTse-x7l]

I don’t think China is slowing down. The Chinese are getting more nationalistic and tire of western influences and complaining.

[@marybeasley8219]

GOOD.

[@bl1204]

And for the better. Don't waste your money buying these obscenely overpriced luxury goods. They don't impress anyone anymore and can actually make you look stupid, especially the logo stuffs.

[@hannalundqvist3210]

Greedy is the second name of Design fashion hauses - and stupidity is the second name of people who still pay for a bag 10 000 Usd

[@Capyrass]

Luxury is overrated.

[@catmi3068]

I don’t go for name brand because it is tooo expensive for ordinary person. I could buy pants for $5 and it is as good as the name brand. When I wear a name brand I won’t be richer or a cheap clothing be more poorer. The name brands need to come down before I buy again. I am in my 50s I rather go for experience. For hotel, I would go for cheaper hotel. I am there for siteseeing and not to relax at the hotel.

[@altaycani]

Its because of those unnecessary lines infront of those stores that people dont wanna wait for no reason

[@philipmo4609]

Boring products and bad quality 🎉🎉🎉🎉🎉

[@gdwlaw5549]

Kering share price in 2021 almost 800 euros …..so with all that leverage they have taken on what’s the deal now? Hostile takeover ?

[@tomr164]

All the value propositions of these brands are absolutely trash

[@abelcain945]

Wait... is this a tele-dating ad or a business report... Always keep the truth: the more a person distracts you with their looks, the more they're trying to hide

[@stache1954]

Your Mom wants you to wash the car.

[@kwokleongawyong1064]

Brillant

[@calvinang1]

Adois to foreign luxury brands. Buy local

[@phoenix5054]

This has been reported a year ago. Is Yahoo just recycling old stories for clicks now?

[@daweigo6851]

...was interesting story to many people

[@ODaughterofZionMinistries]

Thailand has great replicas

[@waytooready]

Where did you buy? Lazada?

[@samartz]

Ohh no, how else to show off? Hahaa

[@lovingme1st973]

It never started for me .

[@CowboyPants-h5p]

Those poor rich people!!! Whatever will they do now????

[@stay_real_life]

I thought Koreans are the highest spender on the luxury goods?