Reported 11 months ago
Chanel's top designer's departure has sparked speculation on the future direction of the luxury goods industry, with major players like Chanel and LVMH increasing prices significantly over the past years. RBC estimates show product prices have risen by 33% on average since 2019, accounting for half of the industry's organic sales growth. As living costs rise globally, consumers are becoming more selective, challenging luxury brands' pricing strategies. Chanel, the second-largest luxury label, reported 16% sales growth last year, with price hikes driving more than half of the increase. Concerns over pricing and limited growth prospects are also arising among investors in rival luxury companies. The industry is rethinking its pricing strategies to appeal to a broader range of consumers while justifying the high prices.
Source: YAHOO