Core Insights - The luxury goods industry is undergoing a significant adjustment, with global market growth stagnating for two consecutive years and a notable decline in the Chinese market, reflecting a challenging environment since the 2008 financial crisis [2][4][5] Market Performance - According to Bain & Company, the luxury goods market is expected to experience zero growth in 2025, with the Chinese luxury market facing a dramatic decline of 18% [5][8] - The luxury sector's core businesses, such as leather goods and jewelry, are under pressure, while the beauty segment shows slight growth, indicating a shift in consumer preferences [4][10] Consumer Behavior - The Z generation's luxury spending dropped by 7% in 2024, equating to a market evaporation of $57 billion, as consumers become more discerning and shift their spending towards more stable assets like gold and jewelry [5][8] - Chinese consumers are increasingly rational in their luxury spending, with only 26% of high-end consumers planning to increase their spending in 2025, a significant drop from previous years [8][9] Brand Strategies - Major luxury brands are reassessing their strategies, with LVMH's revenue declining by 4% in the first half of 2025, prompting the company to consider selling its designer brand Marc Jacobs to alleviate performance pressure [11][17] - The beauty segment is emerging as a potential new growth engine for luxury groups, with brands like LVMH and Kering investing in beauty products to attract younger consumers [20][22] Competitive Landscape - The luxury beauty market is witnessing a transformation, with traditional high-end brands facing growth challenges while ultra-high-end brands maintain stable growth [21][29] - Local brands are gaining traction in China, appealing to consumers seeking personalized and culturally relevant products, which poses a challenge to established luxury brands [9][29] Future Outlook - The luxury goods industry must adapt to changing consumer preferences and market dynamics, focusing on emotional engagement and experiential offerings to navigate the current downturn [9][20][29]

Group 1 - Sales in the perfume and beauty sector decreased by 4% compared to the second quarter of the previous year, with the Asia-Pacific market (excluding Japan) showing relatively slow growth [2] - LVMH's beauty-related business declined by 1%, with both the Asia-Pacific and Japanese markets experiencing year-on-year decreases [3] - Kering Group reported a 7% decline in sales in China, Hong Kong, and Macau, with mainland performance being particularly weak [3] Group 2 - Kering Group's overall revenue for the first half of 2025 was €7.587 billion (approximately ¥62.918 billion), a reported decline of 16%, with net profit plummeting by 46% to €474 million (approximately ¥3.930 billion) [8] - Kering's main brand Gucci saw a significant profit drop of 52%, with expectations of closing 80 stores, up from an initial estimate of 50 [9][13] - Kering's beauty segment, however, showed growth, with a 9% increase in revenue for the first half of the year, driven by the performance of Creed perfume [14][16] Group 3 - The luxury goods market is facing a slowdown, with LVMH and Kering both reporting declines in operating income and net profit for the first half of 2025 [20] - The Asia-Pacific region experienced the largest decline, with Kering's sales down by 22% year-on-year [26] - The Japanese market also showed significant declines, with LVMH's sales down 15% and Kering's down 20% [31] Group 4 - Despite the challenges, the luxury beauty market is projected to grow, with a compound annual growth rate (CAGR) of 5.80% from 2023 to 2030 [32] - Kering has issued €750 million (approximately ¥6.218 billion) in bonds to enhance financial flexibility for expanding its beauty product portfolio [35] - Collaborations for beauty product lines are becoming common, with LVMH partnering with Pat McGrath and Prada with L'Oréal [36]

Group 1 - The article discusses the emerging trend of "nanoship," a short-term, commitment-free relationship popularized by Tinder, highlighting a shift in how young people engage in romantic interactions [4][6] - The concept of "Public Display of Affection" (PDA) is also explored, indicating that young people are seeking comfort through physical interactions to alleviate stress [6] Group 2 - LOEWE collaborated with Hello Bike to launch a limited edition bike, creating a unique urban treasure hunt that blends brand culture with everyday life, amidst discussions of luxury brands adapting to market changes [7][10] - The article notes that luxury brands are increasingly engaging with lower-tier markets, as seen with Chanel planning to open a store in a lower-tier city while simultaneously raising prices [10] Group 3 - Louis Vuitton announced its entry into the beauty market with the launch of La Beauté, featuring 55 lipsticks, 10 lip balms, and 8 eyeshadows, set to debut in 2025 [19][20] - This move is part of LV's broader strategy to expand its product categories and appeal to a wider consumer base [22] Group 4 - The article highlights the successful IPO of Mixue Ice Cream, which has surpassed Starbucks with over 46,000 stores globally, achieving a market capitalization exceeding 100 billion HKD on its listing day [29][30] - The new tea brand, Bawang Tea Princess, is preparing for its IPO in the US, indicating the growing investment interest in the new tea beverage sector [30] Group 5 - Huawei's marketing strategy includes using the daughter of its founder, Yao Anna, as a brand ambassador, which generates significant media attention and discussion [33][35] - The article also mentions Prada's swift decision to terminate its contract with actor Kim Soo-hyun due to emerging scandals, reflecting the challenges luxury brands face in managing their public image [36][38] Group 6 - The upcoming Osaka World Expo will feature a Women's Pavilion, emphasizing female contributions to global progress and equality, aligning with the growing focus on women's empowerment in marketing narratives [48][49] - Various brands are adapting their messaging to celebrate women's achievements, as seen in campaigns by Arc'teryx and Tmall [49][51] Group 7 - The world's first 3D-printed train station, located in Japan, showcases innovative construction techniques that significantly reduce build time while assessing the durability of such structures in coastal environments [57][58]