Category: Echoes

The global luxury market is regaining momentum. According to Savills’ Global Luxury Retail Report 2025, the recovery solidified in 2024 with a significant increase in new store openings and a stabilization—or even growth—of rents in prime locations. Despite economic challenges, the sector continues to thrive, driven by key markets and a wealthy clientele resilient to turbulence.

New Openings Rebound After a Slowdown

Following a slowdown in new openings during 2023, the trend reversed in 2024 with a 12% global increase in luxury store openings. China, although slightly declining, remains a cornerstone of the market, accounting for 40% of all new openings worldwide. This figure highlights the country’s central role, even as its share slightly decreases (41% in 2023).

The Asia-Pacific region, excluding China, also saw notable growth, representing 24% of global new openings. This region outpaced North America and Europe in terms of expansion, with Japan leading the way as the most dynamic market in the area.

Major Cities Regain Their Central Role

With the resumption of international travel, global Alpha cities—those essential hubs for luxury retail—have once again become focal points for brands. Shanghai, Beijing, and Tokyo topped the rankings for new openings in 2024, reaffirming their status as strategic centers for luxury. Other cities such as Hong Kong (9th place) and Singapore (5th place) have also strengthened their appeal.

This renewed focus on major cities is also driven by the concentration of wealthy individuals in these markets. These consumers, who are less impacted by economic slowdowns, have enabled brands like Chanel and Hermès to maintain strong performances, further enhancing the attractiveness of Alpha cities.

Rents Rise in Key Locations

Pressure remains high on prime retail spaces. Tsim Sha Tsui in Hong Kong retains its position as the most expensive luxury destination, with rents reaching €17,132/m²/year. Madison Avenue in New York and Bond Street in London climbed to second and third places, respectively, after ranking fifth and fourth in 2023. With indicative rents of €15,333/m²/year, Bond Street has now overtaken Via Monte Napoleone in Milan (€15,000/m²/year) as the priciest location in Europe.

In Asia, Ginza in Tokyo ranks fifth with rents of €13,406/m²/year, while Singapore is lower on the list at 19th place, with €1,725/m²/year.

A Long-Term Strategy for Luxury

According to Anthony Selwyn, co-head of global retail at Savills, luxury brands are realigning their strategies to meet customer expectations:

“Brands are increasingly focusing on affluent but relatively underserved domestic markets while strengthening their presence in major international cities. The quality of locations and buildings is becoming a strategic priority, which is driving rent increases in key areas.”

2025 Outlook: Balancing Stabilization and Caution

For Marie Hickey, Savills’ head of commercial research, the luxury market is entering a phase of consolidation:

“The stabilization that began at the end of 2024 is expected to continue this year. However, weak consumer sentiment in China and the United States may weigh on growth, steering investments toward the best short-term opportunities.”

Despite economic complexities, the global luxury sector continues to demonstrate its adaptability. Brands are bolstering their presence in strategic locations while exploring new markets. With increasingly demanding consumers, innovation and adaptability will remain the keys to sustaining this momentum.

Tribes & Trends, May 2025

From May 3 to June 8, BHV Rivoli, the iconic Parisian department store, transforms into a temple of linen for Les Grands Gestes du Lin, an event organized by the European Flax and Hemp Alliance. For over a month, the store will be entirely adorned with this natural fiber, launching an innovative campaign highlighting its numerous benefits.

A Remarkable Fiber in the Heart of Paris

Linen, a flagship material of the European textile industry and a symbol of sustainability, is celebrated through an immersive and elegant scenography. Visitors will discover the many applications of this iconic fiber: clothing, accessories, home textiles, and design innovations. BHV Rivoli becomes the stage for a unique celebration of this noble material, with redesigned displays and spaces showcasing its beauty and potential.

An Ode to Responsible Fashion

Beyond aesthetics, this event delivers a strong message: promoting more responsible fashion. Linen, primarily cultivated in France, stands out for its low environmental impact—requiring no irrigation and minimal chemical inputs—while offering exceptional qualities: lightness, durability, and comfort. Through workshops, demonstrations, and discussions, Les Grands Gestes du Lin raises awareness about the importance of mindful consumption while highlighting European artisanal expertise.

An Unmissable Event

Fashion, design, ecology… This event brings together everything to captivate lovers of creativity and sustainable innovation. Until June 8, BHV Rivoli invites you to dive into the world of linen and discover how this exceptional fiber blends tradition with modernity.

A must-see event to celebrate sustainable elegance in the heart of Paris.

A symbol of elegance and luxury, Estée Lauder is navigating an unprecedented storm. With a steep drop in profits and mounting global economic pressures, the American cosmetics giant is losing some of its shine. From January to March, its net profit plummeted by 53%, reaching just $159 million, a harsh blow for a company accustomed to thriving.

Worrying Numbers

Although adjusted earnings per share reached 65 cents, far exceeding analysts’ expectations of 31 cents, this is not enough to disguise the 10% drop in revenue, which now stands at $3.55 billion. While this revenue figure is above forecasts, it reveals a troubling trend for a brand that has long ridden the wave of global growth.

In a statement, Estée Lauder did not shy away from highlighting the causes of this downturn: waning consumer confidence, a significant slowdown in China, and rising production costs driven by persistent inflation and punitive tariffs.

China: A Slowing Engine

Once considered a golden market for luxury brands, China is showing signs of weakness. Consumers, who were previously a driving force behind Estée Lauder’s growth, are now exercising greater caution. “Chinese consumer conversion is weaker,” the group admitted, pointing to a global trend that is weighing on the entire industry.

The Response: A Bold Plan

In response to this crisis, Estée Lauder has unveiled a massive restructuring plan. By the end of 2026, the company intends to cut 5,800 to 7,000 jobs, nearly 10% of its global workforce. This program, expected to cost between $1.2 billion and $1.6 billion, aims to reduce costs and overhaul the company’s structure.

To date, over 2,600 positions have already been eliminated, representing $623 million in cumulative charges. Despite the scale of these cuts, CEO Stéphane de La Faverie remains optimistic: “We are confident in our ability to return to strong growth by 2026, provided that recent tariffs are significantly resolved.”

Luxury Under Pressure

However, the restructuring comes at a cost. On the New York Stock Exchange, Estée Lauder’s shares dropped 3.55%during the day, reflecting investors’ skepticism about the company’s ability to turn things around.

For a brand that has embodied excellence and timeless beauty for decades, this setback feels like a wake-up call. How can Estée Lauder once again captivate increasingly demanding consumers while weathering the shocks of a rapidly evolving global market?

The Time for Reinvention

Estée Lauder now stands at a historic crossroads. In an industry undergoing profound transformation, where sustainability and innovation dictate success, the company must reinvent its business model without losing its essence. Its massive restructuring plan is a bold move, but will it be enough to restore its luster in the face of fierce competition?

The challenge is immense, but the company’s history proves it has the resilience to rise again. Like its iconic products, Estée Lauder must apply to itself what it promises its customers: a rebirth, stronger and more radiant than ever.

From April 24 to 26, 2025, the Change Now trade fair turned the Grand Palais in Paris into a global epicenter for sustainability, drawing 40,000 participants, 10,000 companies, and representatives from 140 countries. Among the many industries present, LVMH emerged as a key voice, championing bold solutions to reshape the future of fashion and luxury in a world demanding accountability.

Two standout moments defined the event: Hélène Valade’s (LVMH) visionary speech on supplier collaboration and the powerful intervention of a Native American chief, whose wisdom reminded participants of the deeper values underpinning sustainability.

Fashion’s Wake-Up Call

Despite occupying a smaller footprint at the fair—with just 28 exhibitors—the fashion sector delivered a powerful message: the industry is ready to confront its environmental impact and embrace a circular economy.

At the forefront of this movement was the Fédération de la Mode Circulaire, which has rallied 300 members since its founding in 2020. Its recent study with KPMG France shed light on the economic and environmental shifts needed to transform the European fashion industry. Meanwhile, Kering, a longtime leader in sustainability, showcased its Kering Generation Award alongside other influential players like the Institut Français de la Mode and L’Atelier des Matières.

Start-ups also made waves, with Save Your Wardrobe and Prolong debuting creative solutions to reduce waste and extend garment lifecycles through software-driven systems. These innovations underscored a collective awakening—the industry is no longer just talking about change; it’s acting.

Hélène Valade: LVMH’s Vision for a Sustainable Supply Chain

On the Agora Stage, Hélène Valade, environmental development director at LVMH, delivered a compelling address that positioned the luxury giant at the forefront of fashion’s sustainability revolution. As president of the Observatoire de la Responsabilité Sociétale des Entreprises (ORSE), Valade brought a message of collaboration and accountability to the table.

“In Italy, there are 60,000 small businesses powering the luxury supply chain,” she noted. “The fragmented nature of this network makes collecting data a daunting task, but it’s a challenge we must overcome to achieve true sustainability.”

LVMH’s response? The launch of ‘Licensing Business Partners’, an ambitious plan to harmonize traceability requirements across luxury brands like Chanel, Hermès, and Dior. By reducing inefficiencies and unifying data collection, the initiative seeks to free suppliers from repeated administrative burdens, empowering them to focus on their environmental impact. “This is about giving our partners the tools to transition sustainably while making the process more coherent across the industry,” Valade explained.

A Timeless Reminder from Indigenous Wisdom

Amid the innovation and strategy, a moment of reflection emerged when a Native American chief took the stage. His words, though simple, carried a profound weight: respect the Earth and protect future generations. His intervention served as a stark reminder that sustainability is not just about technological solutions it’s about reconnecting with fundamental values.

LVMH and the Future of Fashion

Change Now 2025 made one thing clear: the fashion industry stands at a crossroads, and LVMH is leading the charge. With initiatives like Licensing Business Partners and deep investments in collaboration, the luxury giant is not just adapting it’s actively shaping the future.

But as the Native American chief reminded attendees, true sustainability transcends business strategies. It’s about a mindset shift that prioritizes the planet over profit and recognizes that the choices made today will shape the legacy left for tomorrow.

For LVMH and the fashion industry as a whole, the stakes have never been higher. The question is no longer whether to change it’s whether the change will be bold enough to make a difference. And with leaders like LVMH at the helm, there’s hope that the answer lies in action, not rhetoric.