The global luxury goods market faced an unprecedented shock in the second quarter. Destabilizing even the strongest companies such as LVMH and Kering, which faced surprising revenue declines. As the world refrains from buying more clothes and accessories, in favour, if the data is correct, of jogging pants and comfort items, fashion brands are banking on these products to survive and are strengthening their web presence to make online sales their primary channel.
According to Misha Nonoo, “we are witnessing the final collapse of a tightly knit industry based on the exploitation of creative labour, wholesale patronage, the production of large quantities of unwanted goods and the dumping of these products in landfills. »
While this business model may not represent the majority of European luxury brands or independents, Nonoo is not wrong when she speaks of “razor-thin margins and an icy pace of change in many fashion organizations.