The data available as of the third quarter of 2024 indicates that the financial results of luxury conglomerates were disappointing for sector experts: The industry’s turnover was US$58,000 million lower than that of 2023according to calculations by fashion and beauty consultants such as Bain & Co and Digital Luxury Group.
In this framework, the year 2025 had breakfast with the early news that Chanel announced a cut of 70 jobs in the United Statesaround 2.5% of its workforce in that country, as part of a cost reduction plan. Likewise, he clarified that the US continues to be an important part of his long-term strategy.
The company argued that it adopted the measure because it faces “a difficult economic environment” and maintained that it will allow “adapt better to current economic challenges”.
Chanel is often considered one of the brands more exclusive and resistant to the shocks in global consumption, since it supplies the wealthiest clients, capable of spending more than US$10,000 on a handbag.
But the cuts in expenses and personnel occur within the framework of a general decline in demand for high-end items since the post-pandemic boom.
“We expect ebbs and flows in demand in any market”Chanel said. The Americas accounted for around 20% of Chanel’s total sales in 2023, compared to 28% for Europe and 52% for Asia-Pacific.
Chanel is owned by Alain and Gerard Wertheimer, whose fortunes They are estimated at about US$46,000 million each.according to the billionaire index Bloomberg.
What about other players in the luxury market?
Another important player in the luxury market, Richemont, The jewelry manufacturer Cartier, reported last week sales for the last quarter of 2024 that exceeded estimates. That raised hopes that the worst may already be over for the drop in demand for high-end products.
Another luxury giant like LVMH (owner of the Louis Vuitton and Christian Dior brands) was the first to alert the industry with a 16% decline in third quarter sales in the Asia region excluding Japan, compared to the third quarter of 2023.
For comparison, in 2021, the Asia region, excluding Japan, was responsible for 35% of LVMH’s total revenue. By the end of 2024, the percentage was reduced to 6%.
On the other hand, the Kering conglomerate, owner of gucci and Balenciaga, suffered the worst blows in the last quarter of last year, after reporting a slowdown in the Asia-Pacific region during the first half of 2024. Because of this, the wealth of its founder, François Pinault, fell to US$22,000 million in the last twelve months. Compared to 2021, His fortune fell by 63%.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
