• In this year 2023 more marked by the risks of global recession than growth at the ceiling, one sector continues to post record results: luxury.
  • A success at a time whose outbreak dates back to the coronavirus.
  • Why is luxury, especially French luxury, doing so well, even in a moribund economy? Yves Hanania, specialist in the field and co-author of the book Le luxe contre-attaque, discusses the reasons for this feat for 20 Minutes.

"These are unlikely outcomes." When Yves Hanania lists the results of the luxury sector - 20 billion in turnover for Louis Vuitton alone last year, an increase of 22% for Hermès between the first quarter of 2023 and that of 2022... - , even he can't help but be surprised. However, luxury, the founder of the consulting firm Lighthouse, specializing in strategy and brand development, knows it well. In addition to working with several big names in the field, the specialist co-authored the book Le luxe contre-attaque (Dunod, 2022), reviewing the success of the sector since the coronavirus pandemic. He returns for 20 Minutes on the reasons for this success-story.

The luxury sector is in exceptional shape, with record profits. How to explain such vitality?

The sector has fully understood - and has fit perfectly - into most of today's trends, hence its success. Search for a younger audience, digitalization of the offer, placement on the values of commitment and responsibility, especially ecological with the rise of second-hand and the possibility of repair on a product ....

Brands are more in touch with the customer and seek more to nurture the relationship with him - for example Longchamp has launched a collaboration with Pokémon - and sell on more different channels. Luxury has also diversified: there is accessible luxury, classic luxury and ultraluxury. The sector speaks to more people, has more points of sale and distribution thanks to digital, with a wider range of prices. The offer has simply improved, which explains its success.

The middle seems to have taken advantage of the coronavirus crisis to bounce back stronger and further. This was the title of your book: it "strikes back". Has the pandemic given it a second wind?

The mistake often made is to believe that the Covid-19 crisis has brought new habits, when it has just been an accelerator of already well-established movements. Many luxury houses had understood these pre-pandemic trends, and were equipped to face them, thanks in particular to the rise of digitalization and the massive presence on social networks. It is these houses that have acted upstream, such asLouis Vuitton, that have fared best.

Lockdowns have seen the impact of social networks and digital sales multiply. The houses that capitalized on it were able to take advantage of this very strong sounding board.

Not all sectors can say the same...

Obviously, a car or a hotel night is less easily sold in confinement. Luxury is more malleable to change, it is its very essence than anticipating its time.

But we must not believe that everything was simple. Homes that didn't seize opportunities fell on hard times, even before the pandemic. The house Sonia Rykiel, Parisian flagship in its hours of glory, was placed in judicial liquidity in 2019, before the virus. As everywhere, in luxury, you have to adapt.

During the pandemic, we heard a lot about the world after, with less abundance. Isn't it paradoxical to see luxury flourish like this?

First, the post-Covid period was followed by a sequence of overconsumption, like the Roaring Twenties after the World War. There was the idea of enjoying it again. Then, in a more structural way, the big houses understood the environmental expectations.

We must not rosy the picture, everything is not ideal, but significant efforts are made to allow the development of second-hand, the use of more sustainable products ... In particular, J.M. Weston has greatly expanded its resale and repair business. Luxury sells less in volume than mid-range or low-end, so it is easier to establish a better ecological balance.



Speaking of low-end, the fast fashion brand Shein shows that ecological values are not essential to succeed...

It surfs on the price alone as a lever of purchase, which obviously can not afford. Ultra-fast fashion has come to enrich itself by not respecting any rules and by multiplying the codes used by luxury, including collaborations with influencers and customer rejuvenation. It also shows the vitality of luxury, which inspires other ranges in the ways of creating and proceeding.

In France, 2022 and 2023 are particularly difficult years for the mid-range. Camaïeu has closed down, Pimkie has announced the closure of 67 stores... Are we heading towards a world polarized between fast fashion and luxury?

I do not think so, on the contrary. The price range has never been so diverse. Instead of polarization, I see differentiation within categories. We have already talked about accessible luxury, luxury and ultraluxury, but there is also diversity in the low end, with ultra-fast fashion, fast fashion, low-end, and ditto in the mid-range.

We looked a lot in the retro, but what future do you imagine for luxury?

It is bound to remain one of the jewels of the economy, particularly in France. Just as the United States has long made Gafa its standard-bearer, our country should do the same with the Kholc: Kering, Hermès, Oréal, LVMH and Chanel. Between them, they represent 40% of the valuation of the CAC40 in 2022. It was only 8% fifteen years ago. Today, the Gafaare in turmoil, while theKholc are a hit. Luxury has sown the seeds of its success, the country to capitalize on it, both in terms of jobs and profits.

  • Consumption
  • Economy
  • Luxury
  • Mark
  • Louis Vuitton
  • Chanel
  • Style
  • Hermes