LVMH Fashion Group

Rising prices, shifting consumer tastes and manufacturing scandals are eroding trust in luxury, giving counterfeiters and dupe-makers new opportunities to win over shoppers seeking style at a more accessible cost, writes Andrea Felsted.

European luxury brands have relied on dramatic price increases to fuel profit growth in recent years and may have limited manoeuvring room to raise prices further.

A steep sales decline at the sector bellwether’s core fashion and leather goods division, which houses Louis Vuitton and Dior, point to a long road ahead.

The LVMH-owned cashmere brand is the fifth luxury label to be caught in an Italian scandal that has raised questions about the integrity of the sector’s vaunted supply chains. Sarah Kent joins The Debrief to unpack.

Consumers appear to be calling time on an industry that long ago stopped selling real luxury goods, writes Eugene Rabkin.

Simultaneous crises at LVMH, Kering and Chanel suggest all is not well with the luxury megabrand model, but many of the headwinds they face may reverse in the coming years, writes Luca Solca.

LVMH’s high-end cashmere firm cultivated unassailable luxury credentials with its commitment to quality and craft. According to Italian prosecutors, thousands of its cashmere jackets were made in illegal, Chinese-owned workshops on the outskirts of Milan.

The Italian cashmere firm has been placed under judicial administration for a year due to alleged worker exploitation and inadequate oversight within its supply chain.

The luxury industry is facing another lost year, according to Bain’s latest luxury update, but investors are being too gloomy on the sector’s long-term prospects, argues Andrea Felsted.

The luxury goods maker is reeling from a sharp downturn in the €364 billion industry — and questions about succession are growing louder.