Luxury Fashion Faces Designer Reshuffles Amid Sales Slump

The luxury fashion industry is undergoing significant designer reshuffles at major houses like Gucci, Chanel, and Dior in response to a downturn marked by the lowest sales rates in years, exacerbated by economic slowdowns in China and rising inflation. Brands are striving to rejuvenate their identities while maintaining appeal to affluent consumers, with Gucci appointing Balenciaga designer Demna, which caused Kering shares to fall over 10%. Analysts suggest that these changes must strike a balance between creativity and commercial viability, as new designers face pressure to renew brands without alienating loyal customers. As luxury brands shift focus towards the U.S. market for growth, there are concerns about investor confidence and market strategies. The outcome of these designer appointments and the industry's ability to adapt remains uncertain amid fluctuating market demands.