All this decline in luxury really is not surprising. I think for the most part people in the US are pulling back on spending. May business owners I speak with say their business is slow this summer compared to last year. I have stopped luxury spending bc frankly I have enough to wear this summer and into fall and beyond. Great analysis and it is so interesting to see the numbers!
Hello. Thank you for your insightful commentary. In my close up experience with certain luxury brands - Creative Directors influence are truly not carrying luxury brands. The leviathan owners of these established luxury brands lost their way and pulled away from their heritage to sell out to trend street appeal. I believe were going to see a renaissance of the old world heritage of these brands to save their souls.
Kering has the dark, sleek sexy at YSL, no need to do it at Gucci and now McQueen is pivoting towards this. They need to let go of Demna. All of these brands are starting to look the same.
Phew sooooo much to digest!!!!! I don’t know a single person who could have overviewed this topic as beautifully as you, so thank you for making this subject to digestible 😍🥰🙏🏼 Ugh where to even start… I am certainly hoping for the day where companies care more about their employees and work practices than their margins 😅 CEO’s making the most money (god only knows by what percentage comparatively 😩) is where the problem starts and ends. I am obviously bias towards family owned and/or independent designers/brands, but I wonder if there was a way to extract even just a small bit of those similar principals into a brand owned by a major conglomerate 🙈
Yes💯 Behind these mega brands are thousands of workers and these decisions these few executives make a major impact on their livelihoods. So true about small businesses and family-businesses as 🙌 Thank you so much for watching❤
Great video Mary. Personally, I don’t think fashion/style coming out of Covid is not quite ready (if it will ever be) for all the minis and platform shoes. Look at Bottega, the fashion vibe is different, and doing better. Saint Laurent and Gucci, a runway full of minis, high heels. McQueen, same. Just my observation.
Sabato’s collection only accounts for 25% of all revenue and it’s actually doing quite well. Carryover is what has been dragging them down a bit. I actually believe this new version of gucci, everything is just more wearable. Gucci will be fine I’m sure.
Great Analysis Mary! Now it makes sense, this year I’ve been more so leaning towards designer eyewear over fashion jewelry, fragrance and rtw. With Gucci, I think most Asian-Pacific customers of Gucci loved and purchased Gucci for how it was under Alessandro. It was meant to be loud and eye catching. Whilst, Gucci is focusing more on the current trends of quiet luxury. Also, like you said, Sabato’s handbags looks like it can be made by any brand. I think Sabato is good at making flattering cuts of rtw for women . For YSL, I think since it’s style is like current Gucci as well, maybe YSL customers are also shopping in Gucci, hence lower profit for quarter 1? Also I agree that decreasing prices also decreases the perceived value of the brand.
Yes same! I've been buying more into eyewear more than ever. Yes Asia did well with Alessandro but the current Gucci is not it, at least not yet. Yes definitely when brands decrease prices, it changes the customer perception of a brand. Thank you for watching!
Your video was really interesting! It was good to get a glimpse of Kering through their financials. Gucci's downfall is its maximalist customer base. When maximalism falls, it's hard to remain relevant... This Bottega uptick is funny to me. I've seen sooo many sales of Bottega products online that I wonder how people justify paying full price. Lastly, just wanted to clarify that Farfetch doesn't hold inventory themselves, they're a marketplace for others to sell their inventory. At leas in certain countries, Saint Laurent sells their own products through Farfetch. Those sales would not fall under wholesale. Matches, on the other hand, would :)
Up to 2 years ago I could go into Gucci and find some attractive shirts or pants without logo's. Now, every single item is emblazoned with the word Gucci and a loud logo or 3 logos. The only people interested are working-class street kids. I'm done with Gucci (although I have many loafers from when they made good shoes). I'm male in my 70's.
You have to wonder if the brands Kering has appealed more so to the aspirational client (whom have reined in their spending) and the 1% were always more interested in Hermes LV and Chanel ?
Fabulous video!!!!❤️❤️❤️ Thank you for comparing to LVMH and pointing out the differences. LVMH is much more diversified and can withstand drops in business because they have beauty, fine jewelry, alcohol, luggage, as well as fashion and leather goods. Kering basically only has fashion and leather goods which makes them much more susceptible to consumer trends.
Unsure who is buying balenciaga because every time I see their stores they are completely empty. I cannot imagine anyone who would like to be seen in balenciaga. In my opinion, the current state of the brand represents the worst of the worst especially due to the fact their issues involved the representation of children in the most unsavory way.
I actually really like the long sequined coats by Gucci. I think they have a timeless quality and will become very hard to find. I am going to wait for Zara's versions of them, since I can't afford the real thing.
Hi Mary, it’s no surprise at all. We are living in interesting times, and. bad economy, that will crash and is ready to be changed to quantum, back to gold back currency…. So old regime no matter where fashion governments, all being exposed, and it’s time for new. These brands controlled fashion world for longtime. Manipulated us, consumers, ppl are not falling for any of that. New brands coming , and all changing . Have a blessed day🙏❤️
Yes more people are not falling for the marketing tactics of luxury brands. Definitely change is on the horizon. Thank you so much for watching Giedre❤
Of course footfall has declined at Gucci: here in Sydney, we have a Gucci store in the most upmarket mall locally. The doors may be open but security won't let folks in to shop. But two doors down at Dior, anyone can come in to shop. And without shopping and feeling, touching, the desire to buy remains not raging to go (assuming one has the cash).
Ohhh wow surprised by that move by Gucci. You would think they would be doing everything they can to get people in stores. Thank you for watching and sharing your experience!
Gucci made the same mistake as many other fashion brands, they started to cater to a very small subset of the population of which a very tiny percentage could afford their merchandise. Not everyone wants to dress like The City Girls or Drake.
100% correct. I predicted this, and it's happening. Also, Gucci has a history of dumping their designer when they're making record profits as they have done with Alessandro Michele and did also with Tom Ford. Crikey, it's not rocket science. Saratoga De Sarno doesn't cut it as a designer, no matter how they spin it, and I've said his stay at Gucci will be short due to massive profit decline.
What? City girls dress super sexy and gucci never provided that. When you say small subset, I’m not sure if you mean black or hip hop??? Anyway street wear is very mainstream and is here to stay. Gucci leaned into the logo mania trend like a lot of brands did. Louis Vuitton did the same but instead of taking a sharp left into quiet luxury like Gucci, they got Pharrell who put a fresh take on it and it’s pretty popular. Not everybody wants to do quiet luxury.
What small population Is that? Because these brands have been catering to the Asian market and not the small white American market. The Asian market became the biggest and most profitable and they’re going through a recession now. Nobody wants to admit that 🤔
It’s not just kering family even LVMH revenue has dropped due to their silly price increase and major economy crisis when everything cost so much that people stopped buying
You kept quoting the numbers in billions, I believe it should’ve been millions. Just a quick observation. When a house has a change in creative direction there is a shift in the customer base. The philosophy of the exiting Creative Director and the one that is now at the helm clearly have different ideas as to who their customer is. I also think some of these brands need to stick to what you do exceptionally well and unfortunately, let the rest go to the wayside. For the time being.
I would say 1 *point* 441 billion instead of one-thousand four-hundred, forty-one million as it's quicker to say but that's why I put up the charts for reference. Yes definitely agree these brands need to focus on what they do best!
People ( rich wannabe ) got less disposable income to spend on luxury items to flaunt ….. however genuinely rich ( old money ) buy less but not these flashy items ….
All this decline in luxury really is not surprising. I think for the most part people in the US are pulling back on spending. May business owners I speak with say their business is slow this summer compared to last year. I have stopped luxury spending bc frankly I have enough to wear this summer and into fall and beyond. Great analysis and it is so interesting to see the numbers!
Yes definitely business is slowing down in many areas! Definitely a great idea to enjoy your existing closet
Also people are going to places like tj Maxx, Marshall's and other fashion stores to find quality clothes at an affordable price.
Hello. Thank you for your insightful commentary. In my close up experience with certain luxury brands - Creative Directors influence are truly not carrying luxury brands. The leviathan owners of these established luxury brands lost their way and pulled away from their heritage to sell out to trend street appeal. I believe were going to see a renaissance of the old world heritage of these brands to save their souls.
Great point!!
Kering has the dark, sleek sexy at YSL, no need to do it at Gucci and now McQueen is pivoting towards this. They need to let go of Demna. All of these brands are starting to look the same.
I like the dark sleek look but I know what you mean! Thank you for watching!
Phew sooooo much to digest!!!!! I don’t know a single person who could have overviewed this topic as beautifully as you, so thank you for making this subject to digestible 😍🥰🙏🏼
Ugh where to even start… I am certainly hoping for the day where companies care more about their employees and work practices than their margins 😅
CEO’s making the most money (god only knows by what percentage comparatively 😩) is where the problem starts and ends. I am obviously bias towards family owned and/or independent designers/brands, but I wonder if there was a way to extract even just a small bit of those similar principals into a brand owned by a major conglomerate 🙈
Yes💯 Behind these mega brands are thousands of workers and these decisions these few executives make a major impact on their livelihoods. So true about small businesses and family-businesses as 🙌 Thank you so much for watching❤
Great video Mary. Personally, I don’t think fashion/style coming out of Covid is not quite ready (if it will ever be) for all the minis and platform shoes.
Look at Bottega, the fashion vibe is different, and doing better. Saint Laurent and Gucci, a runway full of minis, high heels. McQueen, same. Just my observation.
Definitely the pandemic has affected how we dress! Thank you for watching❤️
Sabato’s collection only accounts for 25% of all revenue and it’s actually doing quite well. Carryover is what has been dragging them down a bit. I actually believe this new version of gucci, everything is just more wearable. Gucci will be fine I’m sure.
I like his collection as well
Great points! Thank you for watching!
Great Analysis Mary! Now it makes sense, this year I’ve been more so leaning towards designer eyewear over fashion jewelry, fragrance and rtw. With Gucci, I think most Asian-Pacific customers of Gucci loved and purchased Gucci for how it was under Alessandro. It was meant to be loud and eye catching. Whilst, Gucci is focusing more on the current trends of quiet luxury. Also, like you said, Sabato’s handbags looks like it can be made by any brand. I think Sabato is good at making flattering cuts of rtw for women . For YSL, I think since it’s style is like current Gucci as well, maybe YSL customers are also shopping in Gucci, hence lower profit for quarter 1? Also I agree that decreasing prices also decreases the perceived value of the brand.
Yes same! I've been buying more into eyewear more than ever. Yes Asia did well with Alessandro but the current Gucci is not it, at least not yet. Yes definitely when brands decrease prices, it changes the customer perception of a brand. Thank you for watching!
Your video was really interesting! It was good to get a glimpse of Kering through their financials. Gucci's downfall is its maximalist customer base. When maximalism falls, it's hard to remain relevant... This Bottega uptick is funny to me. I've seen sooo many sales of Bottega products online that I wonder how people justify paying full price. Lastly, just wanted to clarify that Farfetch doesn't hold inventory themselves, they're a marketplace for others to sell their inventory. At leas in certain countries, Saint Laurent sells their own products through Farfetch. Those sales would not fall under wholesale. Matches, on the other hand, would :)
Ohh great points Gabriella! Thank you for watching!
Up to 2 years ago I could go into Gucci and find some attractive shirts or pants without logo's. Now, every single item is emblazoned with the word Gucci and a loud logo or 3 logos. The only people interested are working-class street kids. I'm done with Gucci (although I have many loafers from when they made good shoes). I'm male in my 70's.
You have to wonder if the brands Kering has appealed more so to the aspirational client (whom have reined in their spending) and the 1% were always more interested in Hermes LV and Chanel ?
Good point!!
People (including myself) still have not forgotten the sheer tackiness from the Alessandro era. Gucci really ruined its reputation because of him.
Great video, Mary. Thankyou for all your research and work about these topics ! 👠 💗
Thank you so much Diana🙏
Fabulous video!!!!❤️❤️❤️ Thank you for comparing to LVMH and pointing out the differences. LVMH is much more diversified and can withstand drops in business because they have beauty, fine jewelry, alcohol, luggage, as well as fashion and leather goods. Kering basically only has fashion and leather goods which makes them much more susceptible to consumer trends.
Yes definitely! Thank you so much for watching Mark!
Unsure who is buying balenciaga because every time I see their stores they are completely empty. I cannot imagine anyone who would like to be seen in balenciaga. In my opinion, the current state of the brand represents the worst of the worst especially due to the fact their issues involved the representation of children in the most unsavory way.
Yes, I think there is a lot of great marketing on social media behind the brand.
I actually really like the long sequined coats by Gucci. I think they have a timeless quality and will become very hard to find. I am going to wait for Zara's versions of them, since I can't afford the real thing.
Ohh yes it's very fun!
Hi Mary, it’s no surprise at all. We are living in interesting times, and. bad economy, that will crash and is ready to be changed to quantum, back to gold back currency…. So old regime no matter where fashion governments, all being exposed, and it’s time for new. These brands controlled fashion world for longtime. Manipulated us, consumers, ppl are not falling for any of that. New brands coming , and all changing . Have a blessed day🙏❤️
Yes more people are not falling for the marketing tactics of luxury brands. Definitely change is on the horizon. Thank you so much for watching Giedre❤
Of course footfall has declined at Gucci: here in Sydney, we have a Gucci store in the most upmarket mall locally. The doors may be open but security won't let folks in to shop. But two doors down at Dior, anyone can come in to shop. And without shopping and feeling, touching, the desire to buy remains not raging to go (assuming one has the cash).
Ohhh wow surprised by that move by Gucci. You would think they would be doing everything they can to get people in stores. Thank you for watching and sharing your experience!
Gucci made the same mistake as many other fashion brands, they started to cater to a very small subset of the population of which a very tiny percentage could afford their merchandise. Not everyone wants to dress like The City Girls or Drake.
100% correct. I predicted this, and it's happening. Also, Gucci has a history of dumping their designer when they're making record profits as they have done with Alessandro Michele and did also with Tom Ford. Crikey, it's not rocket science. Saratoga De Sarno doesn't cut it as a designer, no matter how they spin it, and I've said his stay at Gucci will be short due to massive profit decline.
What? City girls dress super sexy and gucci never provided that. When you say small subset, I’m not sure if you mean black or hip hop??? Anyway street wear is very mainstream and is here to stay. Gucci leaned into the logo mania trend like a lot of brands did. Louis Vuitton did the same but instead of taking a sharp left into quiet luxury like Gucci, they got Pharrell who put a fresh take on it and it’s pretty popular. Not everybody wants to do quiet luxury.
Drake and The City Girls? You missed few Gucci runway show😅
What small population Is that? Because these brands have been catering to the Asian market and not the small white American market. The Asian market became the biggest and most profitable and they’re going through a recession now. Nobody wants to admit that 🤔
Just say you think they catered to black people and you don't like it. You blew it with the City Girls mention lol. The coded bigotry.
It’s not just kering family even LVMH revenue has dropped due to their silly price increase and major economy crisis when everything cost so much that people stopped buying
Yes many luxury brands are struggling. Thank you for watching!
This happens all the time, it’s economics 101 , like a roll a coaster one minute you up then down then up again and so…….
Great point!
PS apologies for any and all typos/ grammatical errors.
Thank you for watching!
Gucci seems more Miu Miu than YSL to me. I like both, but the sleekness of YSL is more my style.
Ohh good point!!
JPY is very weak right now, a lot Asians travel to Japan, and shop there!
Yes definitely a factor!
Which might not be bad for luxury brands in the long term. They can offer "discounts" without appearing that their products are cheapening.
You kept quoting the numbers in billions, I believe it should’ve been millions.
Just a quick observation. When a house has a change in creative direction there is a shift in the customer base. The philosophy of the exiting Creative Director and the one that is now at the helm clearly have different ideas as to who their customer is. I also think some of these brands need to stick to what you do exceptionally well and unfortunately, let the rest go to the wayside. For the time being.
I would say 1 *point* 441 billion instead of one-thousand four-hundred, forty-one million as it's quicker to say but that's why I put up the charts for reference. Yes definitely agree these brands need to focus on what they do best!
These videos are so interesting!
Only fools buy “luxury”
Chinese dont buy luxury items anymore. They invest in real estate.
Ohh good point!
Balenciaga is ugle and some of the Gucci clothes also ugly bag are ok
Nice necklace
Thank you so much! You should check out Lela Sophia Jewelry❤
People ( rich wannabe ) got less disposable income to spend on luxury items to flaunt ….. however genuinely rich ( old money ) buy less but not these flashy items ….