Milan and Paris? How about Austin, Texas, or Tampa, Florida? The luxury world is recalibrating as US wealth continues to grow, and top marques are looking to regional cities as sales fade in previous hot spots such as Beijing and Shanghai.
Sales fell at leading high-end brands in 2024, largely driven by a drop in Chinese buying. Gucci owner Kering (FR:KER) saw group revenue drop by 12 per cent in the nine months to 30 September, to €12.8bn (£10.6bn), and LVMH’s (FR:MH) fashion and leather goods division reported a 3 per cent drop in the same period to €29.9bn. Only its perfumes, cosmetics and mid-market ‘selective retailing’ units reported growth in the period.
Luxury consumers and analysts alike have now turned their attention to the growing US market, which recorded 4 per cent growth this financial year, and is expected to reach 7 per cent growth next year as predicted by HSBC.