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Why a shabby luxury brand is hard to fix

Livemint · 1y ago

Medial

Luxury fashion brands Gucci, Balenciaga, Burberry, and Salvatore Ferragamo are struggling to regain market share and increase sales. These brands have faced various challenges such as over-the-top designs, controversial ad campaigns, weak sales, and dependence on discount outlets. Despite efforts to revamp their image and attract customers with high-priced handbags, these brands are still facing declining sales and pressure on profit margins. The dominance of larger luxury groups like LVMH, increased marketing budgets, and a shrinking market for affordable luxury goods further contribute to the difficulties faced by these brands. Investors should be cautious and monitor the effectiveness of turnaround plans before making any investment decisions.