For a long time a symbol of eternity and prosperity, luxury today is facing a deep crisis. While prestigious houses still retain their aura, their model is weakened by economic, social, and cultural upheavals. Several factors explain this decline.
1. An excessive dependence on emerging clientele
For the past two decades, the growth of luxury has relied almost exclusively on the wealthy classes of China, Southeast Asia, and the Middle East. However, China’s economic slowdown, stricter taxes on imported products, and travel restrictions due to geopolitical tensions have curbed this demand. Houses, overexposed to these markets, are seeing their sales plummet.
2. The erosion of desire in the face of banalization
Luxury is no longer rare. Massive communication campaigns, the omnipresence of logos, and the opening of stores in every capital have turned the exceptional into a commonplace product. What was once reserved for a cultured elite is now within reach thanks to credit or online resale. As a result, symbolic value erodes, and luxury items no longer impress. Continue reading