Core Insights - The luxury goods industry is experiencing a gradual slowdown in growth, partly due to brands continuously raising prices over the past few years [1][3] - Consumers have noticed an increase in the frequency of luxury goods sales events, indicating a shift in market dynamics [1] Industry Trends - Since 2020, most luxury brands have been increasing prices at a double-digit annual rate, surpassing inflation, which cannot solely be attributed to supply chain and labor cost increases [3] - High pricing has suppressed consumer demand, leading to a consensus that excessive pricing is detrimental to overall industry performance [3] Company Strategies - Burberry has begun to adjust its pricing strategy, reducing the average price of some bags by 5% [4] - YSL has also lowered the price of its popular Loulou handbag by approximately 10% [4] - Some brands are opting for discreet sales strategies, such as flash sales and VIP private sales, to manage unsold inventory while maintaining brand image [4] - LVMH has introduced more affordable product lines, such as the upgraded Neverfull bag, to attract consumers [4] Consumer Behavior - Consumers are increasingly engaging with sales associates, indicating a shift in how luxury brands interact with their customer base [1] - The trend of brands offering significant discounts during private sales events suggests a response to changing consumer expectations and purchasing power [1][4]