Core Insights - The luxury goods industry is experiencing a dichotomy, with some brands showing steady growth while others are struggling, highlighting the evolving value logic and core strengths of brands amid macroeconomic uncertainties [3][10]. Group 1: Steady Growth Brands - Hermès reported a revenue of €11.9 billion for the first three quarters of 2025, with a year-on-year growth of 8.6% at constant exchange rates, driven primarily by its leather goods segment [4]. - LVMH's revenue for the first half of 2025 decreased by 4% to €39.8 billion, but the decline in the Chinese market has improved to "high single-digit negative growth," indicating resilience [6]. - Richemont's sales increased by 6% to €10.2 billion for the first half of the fiscal year, with its jewelry segment, including Cartier and Van Cleef & Arpels, growing by 10% [7][8]. Group 2: Struggling Brands - Chanel's revenue fell by 5.3% to $18.7 billion in 2024, marking its first decline since 2020, with operating profit and net profit down by 30% and 28.2%, respectively [9]. - The brand faced marketing challenges, including consumer backlash over perceived production quality in promotional materials [9]. - Despite the downturn, Chanel plans to open 48 new stores, focusing on expanding its distribution network in second- and third-tier cities in China [9]. Group 3: Market Dynamics - The luxury market is increasingly concentrating resources, clientele, and market share among a few super brands, which possess strong pricing power and cultural assets [10]. - The recovery in the Chinese market is crucial but not a panacea; strong brands can capitalize on this rebound, while weaker brands may struggle despite favorable conditions [11]. - The ability to innovate and manage market expectations will be critical for brands aiming for sustained growth, while those lagging must focus on redefining brand positioning and core product competitiveness [11].