Luxury fashion is facing a slump. Major brands like Gucci, Chanel, and Dior are reshuffling their designers to reignite interest. The global luxury market is experiencing its lowest sales in years, impacted by economic slowdowns in China and rising inflation.
Brands need to balance creativity with commercial viability. Kering-owned Gucci and Chanel are turning to rising stars from smaller labels. Last week, Demna’s appointment at Gucci caused a significant drop in Kering’s shares.
As luxury brands shift focus to the U.S. market, Chanel is hiring Matthieu Blazy to replace Virginie Viard. LVMH is expected to announce new leadership at Dior soon. Other brands like Celine and Givenchy are also seeing changes.
Clients are confused by the frequent designer shifts. Many analysts note a significant change in creative leadership. Such changes will impact design and marketing but may take time to show results.
Brands must avoid confusing clients with drastic changes. Chinese shoppers focus on current designs, while Western consumers value brand continuity. Some customers care more about uniqueness than the designer’s name.
The luxury sector is expected to grow around 4% in 2025. Sales to Americans will drive much of this growth. Brands need to act quickly if they sense slowing growth.
