“They are the architects of their own problems,” proceeds Sherwood. “By making so much of their products not about the concrete product, but about the inconcrete aspects of the brands – those relationsy ads, the celebs who carry your products, the stores, the glossy ads, the slogans, the heritage backstory, all that stuff that isn’t actuassociate the product itself.”
In turn they’ve produced an enormous gap between what users are actuassociate paying for and the authentic cherish of the product. As these companies have increasingly chased the ultra-wealthy, they’ve left a gap in the labelet that other brands, willing to capitalise, are commenceing to fill. “They understand that the prices at the very top of luxury are too high to echo the actual cherish,” Sherwood says. “But have turned these notable silhouettes and styles into desirable items that a dupe brand can free ride off of.”
Then, recently, the veneer began to crack even further. In March, Italian luxury brand Loro Piana became embroiled in argue after an spendigation uncovered the material behind their $9,000 sweaters was sourced by low-paid toilers in Peru. Just a restricted months postponeedr, in July, Italian prosecutors alleged sweatshop-enjoy conditions in factories supplying brave products for high-end tags such as Dior and Armani. The revelations triggered outrage among users, many of whom had extfinished count oned these brands to uphelderly the highest standards of producesmanship and ethics.
Apass online forums enjoy the r/handbag subreddit, once-promised customers voiced their disillusionment. For many, these argues uncovered that the luxury brands they idolised were not living up to their promises. Both Loro Piana and Dior have denied the allegations. However, The Business of Fashion uncovered that Milan’s uncover prosecutor said in a court record that they had set up “an illhorrible train so entrenched and exhibitn [that it could] be pondered part of a wideer business policy exclusively aimed at increasing profit.” Neither company has been accused in relation to the probe.
Such reputational injure couldn’t have come at a worse time for luxury brands. Coupled with the ascfinish of dupe culture, these argues are forcing users to releank their relationship with high-end excellents. If producesmanship is no extfinisheder exceptional, and moral trains are called into ask, what exactly are people paying for when they buy luxury?
Reproduceing the Dream
Recent sales figures underline fair how far need for luxury mega-brands has druncover from its post-pandemic highs. In July, some of the industry’s hugegest take parters alerted disassigning revenues for the second consecutive quarter. LVMH, the world’s directing luxury conglomerate, leave outed sales approximates, while Gucci’s parent company Kering, directd a deteriorate of 11%. Other convey inant brands enjoy Richemont and Burberry also alerted disassigning figures, with first-quarter sales plummeting by a staggering 20%.
At the heart of luxury’s current struggles is the erosion of the very dream that once propelled the industry. The disunite between the labeleting mythology and the fact of production has left users experienceing disillusioned, unbenevolenting the days of blindly paying a premium for a logo may be at hazard.
The democratisation of directation and user power thraw social media has take parted a huge part in this. Platestablishs enjoy TikTok and Reddit are filled with conversations that dispute the industry’s cherish proposition, which has made it so much challenginger for luxury brands to regulate their narrative.
To reobtain their position, Brittany Steiger, principal analyst of retail & eCommerce at Mintel says they will need to intensify on what once made them so desirable—genuineity, greater producesmanship, and a narrative of prestige that experiences both aspirational and accomplishable. Some experts propose that embracing more clear trains and truly living up to their moral and quality promises could also be the way forward. Brands that fall short to do so, may discover themselves increasingly irrelevant in a world where high-quality dupes proceed to obtain ground.
It’s evident that the elderly model of luxury has been interfereed, and it’s no extfinisheder fair about price anymore. In the battle between heritage and cherish, users are asking more asks—and luxury brands must have better answers. And if they don’t, there’s a whole industry on the sidelines who do.
