The State of LVMH & The Luxury Fashion Decline?

The State of LVMH & The Luxury Fashion Decline?
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References:
2024 First Half Results
www.lvmh.com/e...
Some LVMH investors demand change after probe into alleged sweatshop-conditions at Dior contractors
www.reuters.co...

[@isaacyang249]

At this point, I feel like luxury is too saturated. The selling point of luxury was quality and that goods are ethically made due to the high price. Buying luxury is losing its spark especially with dangerous working conditions, the true markups, decline in quality, frequent price increases. Given Dior's scandal with sweatshop working conditions and Loro Piana paying close to nothing for vicuna wool.

[@OfficialROZWBRAZEL]

yes...disgusting

[@MarysRoom]

So true! There is only so many collections by so many brands I can follow. 100% about the sweatshops and how workers are treated. Thank you for watching Isaac❤

[@margaretfederal5099]

No tears being shed here for LVMH concerning their "dip." While there may be several factors, their RIDICULOUS price hikes and dip in quality must certainly be factors.

[@MarysRoom]

Yeahh the price increases have been too much

[@ladyjunon6305]

Personally, I thimk that LVMH is going to be fine. Their brands are very diverse and -1% is a very shallow dip. I'm more worried about Kering (Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen) due to the fact that most of them (outside of Saint Laurent) targeted a very trendy customer.

[@MarysRoom]

Yes!! Definitely Kering is the one to worry about! 👀

[@TaliaAdira]

Thank you for the food for thought. I am frankly not a fan of current LVMH brands... I purchase vintage because of the quality.

[@MarysRoom]

Yes vintage is so much better!

[@LadeeHaha]

This is a nice overall analysis. I appreciate the breakdown by the brands. Overall where I stand on luxury is that I am exhausted from chasing after "the next it thing" It is too much time, money, and energy consuming. Am currently dealing with SAs texting from their work phones into my personal phone when I am either working or traveling, them not respecting my desire for a break, it is getting exhausting.I don't even want to know what the next new thing is anymore.

[@patriciaa65]

💯

[@MarysRoom]

Yess honestly the idea of chasing the next thing is exhausting. Thank you for watching and sharing❤

[@OfficialROZWBRAZEL]

the line couldn't go up forever, especially not now. no tears over here

[@MarysRoom]

True!

[@abh4316]

Prices are sky hight. What I bought for a single article for 300 dollars is now 1700 dollars in Dior. This is one example

[@MarysRoom]

It's crazy now!

[@laurabernard2094]

So true!

[@altacostura3512]

Absolutely loving your longer-format analysis videos!!! Thank you.

[@MarysRoom]

Thank you ❤

[@thecritiqque]

22:00 Yes please! Would love a Kering video

[@MarysRoom]

Done!

[@TaliaAdira]

Hello. LVMH is a leviathan of brands and the current reality is there is a pull back on luxury purchases because the consumer markets frankly - everywhere - is cautious and considering current job security. Also Fast Fashion brands are producing high end copies.

[@MarysRoom]

Yes also important to note!

[@VinylSkillz]

Poor people are gonna have to understand luxury aint for them. Look, i rock Converse sneakers that are like 80 -90 bucks at most. They are nice and clean. I see NO reason to buy anything thats in 250+ range if it aint shares of a company. People are nuts!!

[@MarysRoom]

LOL! I wish I could have told that to my poor student self...

[@jennysoderlund527]

Another superb video. Thank you so much for recording these! I cannot express how useful they are to me. Super well researched and informative, as well as experienced insights; you're the best.

[@MarysRoom]

Thank you so much for watching Jenny❤

[@anttoronto3202]

Love my vintage pieces.

[@MarysRoom]

Vintage is the way to go!

[@mariacancello-zi3dr]

Thank you Mary for this really intriguing dive into LVMH Q2 numbers. Let’s see if customer reservations about pricing and quality and treatment of workers impact their figures further in Q3. I always knew products were ‘marked up’ but the latest revelations make me realise just how badly workers/artisans are being treated. I love beautiful things but I don’t want to be taken for a ride. My money is staying in my bank account for now, even though lots of items in Celine AW24 have caught my eye. Have a fab weekend 🥰

[@MarysRoom]

Yes I think the latest revelations about the working conditions I wouldn't be surprised if we see a dip. Thank you for watching Maria❤

[@marvinjuliusmag-aso1137]

Q3 will be good for all french luxury brands because of the summer olympics…but i dont know what happen after that…

[@Littlestephy29]

It feels like buying into a scam sometimes. Some pieces are high quality and I cherish them but to crank out season after season of endless items that are all thousands of dollars- it’s selling a pipe dream. My Tiffany jewelry has all needed repairs for example and at some point the markup is just being a fool.

[@MarysRoom]

That's so disappointing about Tiffany! The prices to quality is not there

[@laurabernard2094]

I’m for quiet luxury…I am not a nouveau fan… used to love Hermes bags until you see them displayed by every other person exhibiting them. To have signature sun glasses by one logo another for your belt..shoes and the like are distasteful… I go for easy simplicity with a certain elegance… I would much rather try to naturally exude my inner being!! For unique fabrics gifted tailoring draping innovation and creative subtleties I would be willing to shed some $$$$ but as stated in other remarks I will allow myself to be frankly ripped off for just so much… especially since luxury is no longer haute couture… more of an assembly for ludicrous sums…fashionista since day one…I am now totally turned off… Shame on the industry!!!

[@MarysRoom]

Thank you for your perspective🙏

[@julescasa1375]

Bravo Mary for presenting such a well researched vlog on this subject. I have thoroughly enjoyed your other vlogs on Kering and Richmont, so well done. Many brands spent so much time on "popular" issues while ignoring good business basics like the wellbeing of their employees and subcontractors. This may seem obvious but I believe the best way forward is for consumers to vote with their dollar. Dior had a perfect opportunity to turnaround their manufacturing practices but instead chose to white wash their responsibility to their workers. In the case of balenciaga, I do not believe they will be able to repair consumer trust with the brand's two separate incidents involving the unthinkable when it comes to our children. Ultimately, consumers have and will continue to vote on balenciaga leaving most of their stores empty. Hopefully these brands are paying attention. I do believe what will get their attention, is the bottom line which can be artificially supported for a period of time but that time eventually runs out without significant consumer spending.

[@MarysRoom]

Yes I think its helpful for consumers to hold these brands accountable. The more information out there, the more informed a consumer can be. Thank you for watching and sharing❤️

[@tolikfox007]

Are you kidding? I,'ve been calling for it for years. Galliano may be the only person that can bring Dior back

[@MarysRoom]

That's the rumour

[@Lordlasagnaa]

Most brands are boring and don’t convey a message with their collections. Most brands are trend hopping.

[@nicolas_arst]

The summary I needed. Thanks Mary! Awesome video.

[@MarysRoom]

Thank you so much Nicolas!!

[@daniellericht7718]

Dior is only the tip of the iceberg. Quiet Luxury is not going away

[@MarysRoom]

Good point!

[@vscents5674]

Your voice is so soothing! Love the video!❤

[@MarysRoom]

Much appreciated! Thank you for watching Vscents❤️

[@user-lz2ii2ev7f]

That Japan info is on point. I just got back from 2 weeks in Japan. I bought luxury there because the yen is so weak against the dollar. I have not bought brand new here in the US. I think John Galiano is going to Chanel..although his bigoted comments a few years back might be a problem…so maybe back to Dior he goes. I have not seen anyone carrying that LV bag. Nobody bought that Dior bag…it ended up at the outlet. I don’t know why they expected that pandemic growth to continue. That was always unsustainable. That was a bubble that will not be revisited in their sales anytime soon. Luxury is just going through a correction …if the lux brands are lucky things will settle back to 2019 units but will still show growth in $$ but that is only due to their price increases ……but the consumers might revolt on those prices as the quality for all these houses is just average good…nothing exceptional. I’d be interested to see how the contemporary brands are doing now. The Coaches, Marc Jacobs, Mulberry’s etc.

[@MarysRoom]

Hope you scored something you love! I wonder if Galliano would go to Chanel with his past but it would fascinating to see. Yes definitely have not seen that LV bag on anyone.. Yes it definitely seems like the consumers are being extra picky and want luxury brands to make it worth their while. Thank you for sharing your perspective!

[@selenachan4230]

You can only serve one master. Work, supervisors, religion, quiet luxury, logo mania. It also applies to corp. Strategy as well

[@MarysRoom]

Luxury goods should serve the consumer

[@sakuraxworld4566]

I’m so happy for this downfall so they can learn about their mistakes

[@xmochix604]

great in depth video thank you!

[@MarysRoom]

Thank you for watching!

[@4bkb]

Luxury fashion is in decline because the 1% is greedy and don't wanna pay people what they are worth... and the prices are ridiculous. I worked at 2 high end multilabel stores and with my employee discount? I STILL could not buy anything, I got some cologne and candles.

[@MarysRoom]

Yes the greed vs the way employees are treated is terrible!

[@geoffparks7577]

LV can claim responsible growth, but what they are known for is Canvas but even that is not right. You have to really look over the canvas to see if its any good. If Pharrell wanted to make his mark, he could've started with the basics. Improving the durability of the canvas would have won them more customers back, but no let’s make a £250 leather bag and charge £9000 for the fun of it. Gucci may not have had a good year sales wise. But their supreme canvas is IT, it’s durable as hell.

[@MarysRoom]

Yes the fact that customers have to quality control their products is crazy! Great points! Thank you for watching!

[@ShweMyaukMyauk]

Nah Maria is doing “fine” at Dior. I don’t like it but the items are selling

[@MarysRoom]

I'm with you, but I wonder what will happen after this scandal

[@AMusiqa]

Buy Pre-Loved items you save money & the environment! 💰🌱

[@MarysRoom]

Definitely!

[@B33333]

Dior needs John for sure! John belongs to House of Dior

[@tarreemhacaruso2687]

I walked in LV and it was a NO for me. The shoes had a plastic smell. Not at $1000 price point handing me plastic and pleather 👀👀👀👀👀👀😳🙄🫣💆🏾🤦‍♀️

[@MarysRoom]

Ughh that's so disappointing!

[@De_Séchelles]

Lvmh dont play short game. They play the long game.

[@MarysRoom]

Good point!

[@Haferstern]

So far these are just rumors that I, as a Dior customer, hope don't come true. In this case I would change the brand. This person's design is not wearable, he wants to attract eccentric attention and runway fashion is not about production. Everything is different with Maria Grazia, she always emphasizes the team, the simple elegance, wearability, brand identity and takes herself back. Her clothes are very beautiful. I love her design. And Dior isn't completely unethical. They also do a lot of things right. Only those who still don't accept this pricing should buy something else.

[@MarysRoom]

Yes I think Galliano emphasizes the theatrical element in fashion vs MGC focuses on wearability from her feminine point of view. Thank you for watching!

[@sisukonrad6325]

In my opinion all luxury brands are killed by the propagation of the fashion -s youtubers who "buy" luxury items as they buy food. The exlusivity side of luxus dies more and more

[@MarysRoom]

Yes well its certainly more exposed

[@specialsasha6506]

They shud have big sale in December !!! 😂😂😂😂 And they will see the increase in buying Many tourist buy from Japan coz they currency has dropped also u get 10% Vat refund. So it’s much much much cheaper almost like buying from Italy or Paris some items even cheaper

[@MarysRoom]

LOL! I don't know about a sale but they might sneak in a price decrease

[@zhisu2665]

luxury has nothing to offer anymore

[@MarysRoom]

There is little left...

[@GodwinDean-p5j]

Taylor Scott Hernandez Frank Walker Edward

[@Showtroupt2022]

I think you would be so good at changing a mean diaper! Me in diapers is a must and I have to do it morning noon and night and get enemas as well in the evening for behavioral management. You changing my big boy diapers would be top notch! Get over here plot me on the changing table and get to wiping and taping!! Yesss😍

[@abh4316]

Eww Pharrell

[@VioletFem]

Great analysis! I don’t know if we can say that luxury is dead, but it is definitely slowing down which is very normal. Everything can’t go up all the time. LVMH is still in a really good position because of their diversified portfolio. So as you said, I think they will be able to weather the storm. Would love to see an analysis on Kering because they seem to be in a more precarious position. Also, Dior is doing very well under Maria’s direction, so I don’t believe that LVMH is going to replace her with John. I don’t know where this rumor that John is going back to Dior is coming from. I loved his work out when he was at Dior, but I don’t believe that he’s going back and I don’t believe it would be a good decision to do so. There are other fashion brands with no Director at the helm (Givenchy, Chanel….) that he could go to.

[@MarysRoom]

Yes there is definitely a slowdown with luxury but LVMH is better positioned. I def think half of the rumours around Galliano are moreso wishful thinking than anything else. But it is curious how he keeps coming up and the recent presence he's had in the media. Thank you for watching!

[@Lordlasagnaa]

Most brands are boring and don’t convey a message with their collections. Most brands are trend hopping.

[@MarysRoom]

Good point!