Jing Daily’s Post

What's causing the slowdown in luxury sales? According to recent insights shared by one industry expert, it might be due to increasing fixed operating costs. These costs may no longer be variable able to track and adjust based on market trends. As a result, luxury brands may need to re-evaluate their operational strategies to remain competitive in an ever-changing market.

The luxury industry is coming off a three-year global boom that set records for sales and profits. But even the remarkably resilient luxury sector is not immune to economic turbulence. Luxury fashion has been on the decline for six quarters in a row, with spending down 16% YoY over the past quarter. 20-30% of sales were attributed to aspirational luxury shoppers - who are the most likely to stop spending at the moment. So how do you convince them that the investment is worth it? It’s about shifting the focus. Brands need to show how they will elevate our everyday lives and wellbeing, beyond aspirational ownership and status. It's no coincidence that logos and other flashy signifiers of wealth vanished in 2009. Beyond aesthetics, what more do you have to offer people? #Luxury #Fashion #Retail

Dive into the Drama: 10 Shocking Reasons Why Luxury Brands are Drowning in Unsold Inventory! 1️⃣ Trend Traumas: Ever-changing consumer tastes leave luxury brands struggling to keep up, leading to piles of unsold goods. 2️⃣ Economic Ebb and Flow: Economic downturns send shockwaves through the luxury market, leaving brands with surplus stock. 3️⃣ Pandemic Plot Twist: COVID-19 throws a curveball, disrupting supply chains and leaving luxury brands with excess inventory. 4️⃣ Quantity Quandaries: High production volumes and long lead times lead to overproduction, exacerbating the unsold inventory dilemma. 5️⃣ Exclusivity vs. Excess: Balancing brand prestige with production quantity proves tricky, as luxury brands fear tarnishing their image. 6️⃣ Demand Disconnect: Mismatched supply and demand leave luxury brands swimming in a sea of unsold products. 7️⃣ Outlets Overload: Traditional tactics like staff sales and outlets fall short, unable to clear the backlog of excess inventory. 8️⃣ Banned But Not Forgotten: Destructive practices, once employed to clear excess stock, now face bans, leaving luxury brands in a bind. 9️⃣ Inventory Insights: The luxury industry struggles to find a comprehensive solution to the unsold inventory crisis, highlighting the need for innovation. 🔟 Lessons in Luxury: Discover how luxury brands can navigate the choppy waters of excess inventory, ensuring smooth sailing in the ever-changing retail landscape. https://lnkd.in/dxeMFG-i #luxpreneurs #luxuryinsights #luxurynews #linkedinnews #linkedinluxury ------------------------------------------------------------------------------ ▶ I'm Elizabeth Solaru the founder of the Diversity in Luxury Awards. I'm passionate about elevating the voices and achievements of diverse entrepreneurs in the luxury industry. ▶ Need assistance in attracting high-net-worth individuals to your business? Look no further! I specialise in crafting bespoke strategies tailored to Luxpreneurs seeking to connect with HNWIs and UHNWIs. ▶ Interested in having me speak at your event? I'm ready to share insights on navigating the luxury market, captivating high-end clientele, and mastering the art of entrepreneurship. ▶ Let's connect! Reach out to me at elizabeth@luxurybusinessemporium.com for collaborations, inquiries, or just a friendly chat. Stay in the loop by hitting the 🔔 on my profile for all the latest updates and exclusive content. Thank you for your continued support!

Thanks Luxury Daily for the great piece on our latest report on the luxury consumer

Secondhand luxury holds promise. Consumers have accumulated significant volumes of luxury goods in their wardrobes, some of which are hardly used. Giving these products a new life on the secondary market provides sellers with cash and gives a wider segment of consumers the opportunity to buy into luxury brands they could not otherwise afford. Over time, the secondary market for luxury goods could mature into something more structured, similar to what we have in cars.⁠ ⁠ But there are several key challenges that must be overcome.⁠ ⁠ Authenticity is a problem. Profitability is also a challenge. Furthermore, commitment from brands remains elusive. Secondhand luxury demand is highly concentrated on a handful of mega-brands which have no interest in making their styles more visible by providing means for consumers to reduce inventory in their closets.⁠ ⁠ Read the full story on why the secondary market for luxury goods holds significant promise, but there are several key challenges to overcome, writes Luca Solca. ⁠ #LuxuryFashion

Luxury brands could make a great impact if they would be willing to take steps to make authentication easier. However, we must pay attention to the fact that "...mega-brands which have no interest in making their styles more visible by providing means for consumers to reduce inventory in their closets." and most of those mega-brands are owned by two groups that are speaking incredibly loudly about sustainability. Second-hand items are one of the ways a brand could potentially reduce their waste and the fact that these brands aren't embracing this and making the process easier for second hand resellers but actively against it, is disappointing but not surprising. Sustainability to a point... that doesn't affect their bottom line. #fashionindustry #sustainablefashion

Luxury Market to Grow 4 Percent This Year The personal luxury goods market is set to reach €362 billion ($387 billion) by end of year, growing 4 percent at current exchange rates from 2022, stated by consultancy Bain & Company, in a joint report with Italian trade group Altagamma. Performance has been polarised among brands: 65 to 70 percent of brands are expected to benefit from the luxury market’s growth this year, down from 95 percent of brands in 2022. Click on the link below to learn more. #fashion #luxury #news #luxurymarket

It is clear that Millennials and Generation Z continue to drive the growth of Africa's second-hand luxury goods market. Furthermore, the upcoming generations, Gen Z and the emerging Gen Alpha (individuals born from 2010 to 2025), are on the brink of reshaping the future of luxury. For this reason, luxury brands must strive to remain relevant across diverse generational cohorts, and gain deeper insights into the reasons why these consumers choose specific luxury brands over others. #secondhandluxury #SHLG #sustainableluxury #circularecenomy #Africa

1. A made-to-measure approach is fundamental: a one-size-fits-all strategy won't work for aspirational luxury consumers. 2. For younger adults, luxury products are passkeys for recognition and a sense of belonging. 3. More mature customers seek quality and sustainability. 4. Socialites are the biggest spenders in the luxury sector, but they often lack loyalty. 5. Timeless chic are few (but loyal) aspirational customers, often returning to the same loved brand. 6. Mature spenders are mindful minimalists, focusing on the functional side of beauty (first) and apparel.

Sharing a great article focused on how Luxury brands can manage the delicate balance of managing inventory levels, optimising full price sale and reducing waste. Good tips for any brand, luxury or otherwise... #luxury #retailing #disruption