Good results and instability mark the luxury market today

Last Monday, July 29th, we published here in Terapia do Luxo a story about the excellent results recorded by the LVMH group in the first half of this year. According to the text, the French brand conglomerate that has control of luxury market icon brands such as Dior and Louis Vuitton ended the period with a total of 25 billion euros in sales and even the fluctuation of the Chinese market did not. impacted sales accounting.

If the French-based group has plenty of reason to celebrate, the opposite is a major mark on the other side of the Atlantic Ocean. Barneys, one of New York’s flagship flagship stores, has announced plans to file for bankruptcy. In addition to changing consumer behaviors that are increasingly switching from the physical retail experience to online commerce, the iconic New York store has been struggling to pay rent.

While there is no immediate intention to close the door permanently, as the company intends to trigger an area of ​​US law that allows activities to continue until the situation is fully resolved, the future of the store is a big turning point. question.

At the top of the page and above images of Barneys New York, which, in contrast to the good results of the LVMH group, is experiencing a great deal of instability in its management

This reality, which presents such great opposition even though both organizations are in the same market, allows the identification of two important conclusions. The first of these is that luxury brands are not above economic hardship and even the most traditional organizations in the industry may experience fluctuations and times of turbulence in their management.

The other point that there is no doubt that the only certainty that exists today within the economic landscape is change and only companies, brands and organizations that know how to overcome the obstacles that arise and renew themselves in the business trajectory will succeed. And that goes for the upscale segment and all other market niches in the contemporary economy.