Sunday, December 25, 2022

Prepare Now For The Next Market Meltdown

The Best of BoF: Luxury’s Blockbuster Year

BoF is away for its annual break until 3rd January. In the meantime, we invite you to explore highlights of our news and analysis from the year.
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WHAT YOU NEED TO KNOW TODAY: MONDAY, DECEMBER 26, 2022

Add to above BoF Community: The BoF Team is taking a well-deserved break. In the meantime, our reporters and editors have selected the best articles we published in 2022 across our core topic areas of expertise. Today, we focus on Luxury. Look out for our agenda-setting analysis to return on January 3. Happy holidays!

Dear BoF Community,

The luxury sector faced major challenges in 2022, from rapid inflation to slowing economic growth, exacerbated by the return of strict Covid lockdowns in China and the outbreak of war in Ukraine. Yet despite headwinds, sales have never been stronger, rising 22 percent this year as a post-Covid "YOLO" attitude prevailed.

The strongest brands each found their own way to seize on exploding consumer demand: Some, like Chanel, focused on wooing their highest-spending customers while the likes of Saint Laurent and Jacquemus combined runway excitement with smart price points and a seasonless approach. Others revamped their strategies, including major e-tailers who merged with rivals or added e-concessions to their model, and luxury giant Gucci, which repositioned its commercial offer and took steps toward a major creative shift.

Going into 2023, luxury's rapid growth is expected to slow, with concerns mounting around how the sector will adjust.

— Robert Williams, Luxury Editor and Tamison O'Connor, Luxury Correspondent

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