Can Fresh Creative Energy Save the Luxury Industry From Its Worst Slump in Years? Here’s What the Experts Are Saying
After weeks of dazzling runway shows across Europe — complete with glittering gowns, avant-garde silhouettes, and bold new visions from rising stars — the real test is about to begin. Can these fresh designer debuts breathe life into an industry that's been struggling with declining sales, consumer skepticism, and growing fatigue over ever-higher prices?
The stakes couldn’t be higher.
Luxury brands are now racing against time to turn runway buzz into actual revenue. With shoppers becoming more selective than ever, retailers and merchandisers must find ways to rekindle excitement and encourage customers to open their wallets once again. Analysts from top financial institutions are closely monitoring how the latest collections perform both creatively and commercially — especially those from newly appointed creative directors who are trying to shake things up.
And this is the part most people miss: It’s not just about aesthetics anymore. While stunning designs certainly matter, what really counts is whether these pieces can drive foot traffic into stores, inspire sales teams to close deals, and ultimately deliver solid returns for investors.
HSBC took one of the more optimistic stances among major banks. In a recent report, the firm highlighted that the luxury sector has suffered primarily from a lack of customer engagement over the past 18 months. According to them, the key metric to watch right now isn’t profit margins or inventory levels — it’s how many potential buyers walk through store doors when spring arrives.
They questioned whether newcomers like Jonathan Anderson at Dior, Matthieu Blazy at Chanel, and Demna at Gucci would succeed in sparking renewed interest. "We have no idea how well the collections will sell," admitted HSBC, "but clearly, there’s more curiosity out there now. The real magic happens when sales staff know how to capitalize on that initial interest — even if specific items don’t fly off the shelves."
What makes this moment particularly critical is that consumers were burned by rising prices without corresponding innovation. As HSBC put it: “Customers wanted retail therapy after the pandemic, but two years later, they're saying, ‘Same bag, 60% markup? Not worth it.’” This season’s influx of new talent offers hope — with over 15 designers presenting their debut collections in recent weeks alone.
Take Demna at Gucci, for instance. His first official outing was intentionally broad, aiming to welcome everyone — regardless of gender, age, culture, or budget — back into the fold. Though only a teaser compared to his full Fall 2026 presentation next February, the Spring line already signaled a shift toward inclusivity and accessibility. HSBC praised the move, noting that such diversity could attract previously disinterested shoppers and bring Gucci back into mainstream conversation.
But here's where it gets controversial: Some experts argue that simply changing faces at the top might not be enough to fix deeper systemic issues within the industry. Are we witnessing a genuine transformation or just another cycle of hype followed by disappointment?
TD Cowen offered a more measured outlook, expressing cautious optimism about certain developments. They pointed to Dior’s revitalized creative direction under Anderson and Louis Vuitton’s strategy to introduce entry-level products like fashion jewelry and makeup priced under £450 ($575 USD). These moves aim to lower barriers to entry and entice younger or budget-conscious buyers.
Still, TD Cowen warned that change doesn’t happen overnight. The U.S. market, for example, faces tough comparisons to last year’s post-election spending boom. Meanwhile, in China, while more tourists are visiting flagship stores, actual purchases remain tepid due to lingering economic uncertainty. On a brighter note, outbound travel from China has surged, with double-digit growth in visitors heading to Italy, Germany, and the United States.
Another concern raised by TD Cowen relates to rising material costs — particularly gold, which recently hit a record high above $4,000 per ounce. That spike spells trouble for hard luxury goods makers who rely heavily on precious metals, potentially leading to further price hikes down the road.
Bernstein echoed some of these sentiments but remained slightly more upbeat overall. They emphasized that LVMH is taking proactive steps to revitalize lagging segments and predicted positive outcomes in the near future. Dior, they noted, seems energized by Anderson’s fresh perspective, while Louis Vuitton has shifted away from oversized branding toward bolder, trendier offerings designed to capture Gen Z attention.
Innovation isn’t limited to clothing either. Bernstein highlighted several strategic initiatives by LVMH, including the launch of Louis Vuitton Beauty, a new Shanghai concept store inspired by cruise ships, and a partnership with Formula One. While some may balk at paying £120 ($150 USD) for a single lipstick, these beauty items serve as affordable gateways into the brand universe — far cheaper than dropping nearly £1,400 ($1,750 USD) on a classic Speedy handbag.
According to Bernstein, LVMH continues to dominate as the go-to destination for aspiring luxury consumers and investors alike. Despite macroeconomic headwinds and shifting global dynamics — including the fragmentation of traditional luxury markets and increased nationalism — size still matters. And in that arena, nobody holds a candle to LVMH.
So, does the latest wave of designer debuts signal a true turning point for luxury fashion, or is it merely a temporary distraction before the next downturn hits?
We’d love to hear your thoughts. Do you think bold new leadership and creative energy are enough to revive the industry, or should companies be focusing more on affordability and sustainability instead? Share your opinion in the comments below!
