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Declining sales, falling profits, and job cuts have made for a tough first half of the year for the luxury sector. Yet two new initiatives from two of the worlds best-known luxury brands highlight some fundamental principles that must now shape luxurys new direction of travel. The first is the opening of The Louisa boat-shaped concept shop opened by luxury fashion brand Louis Vuitton. The outside of the store resembles the main body of a ship wrapped in a metallic monogram with a silvery LV-styled anchor dropping from its front to the ground. The inside is styled to resemble the kind of LV travel trunks once used for transoceanic voyages. The second is Mystery at the Groomsan immersive escape room-style, mystery game experience launched by Herms at Pier 36 in Manhattan, New York. For 10 days, visitors took on the role of Herms detectives to solve an equine mystery concerning missing horsesthe horse being a central symbol of the brandas they pass through six themed rooms, each featuring unique Herms pieces. What these two initiatives have in common says much about the current state of luxury and where luxury is heading. Decline before renewal For a while now, luxury has been in decline. In May, Chanel announced revenues down 4.3% in 2024 and operating profit down 30%. Burberry reported sales down 12%, operating profit down 117%, and plans to slash around 20% of its workforce 1,700 rolesto streamline costs. Meanwhile, LVMH revealed it will cut its workforce at wine and spirits business Moët Hennessy by 10%1,200 people. And Rolex was one of a number of luxury brands raising its prices due to the soaring price of gold. A downturn in luxury has been evident for some time now, driven by the changing wants and needs of younger luxury shoppers, luxury brand owners struggle to stay relevant, and the maxing out of traditional brand strategies which typically revolved around exclusivity. Combined with the negative impact of COVID lockdowns, growth markets for luxury started to slow as they began to mature. For example, after tripling in size from 2017 to 2021, Chinas luxury market fell back significantly when it slowed to 2020 levels in 2024. What we are now seeing, however, is a shift before a likely renewal. Luxury is changing, and as its changing, its paving the way for these brands to once more prosper. And the evidence lies in two emerging trends: experience-led luxury and quiet luxury. Experience-led luxury The Louis and Mystery at the Grooms are examples of luxury brands reinventing the luxury experience, while tapping into the recent design trend for heritage with a dash of nostalgia. Traditionally, a luxury brands brand experience was all about exclusivity, price, and craftmanship, with the luxury product a symbol of wealth and success. Increasingly, its about a kind of inclusivityimmersive, visually accessible, and yet still requiring a certain amount of being in the know. Luxury brand pop-ups such as Dolce & Gabbana sun loungers and Dior-branded buoys at luxury hotels around the world this summer demonstrate brands desire to showcase their brand universe more widely and, by doing so, be seen as more accessible. Meanwhile Estee Lauder collaborated with high-end French patisserie Laduree earlier this year on a limited edition makeup range, offering a tactile and visually immersive experience in stores. For LV, its playing into the brands heritage by rooting it in contemporary lifestyle and culture. So, The Louis isnt tucked away in a high-end enclave, its at the front plaza of HKRI Taikoo Hui, a shopping mall in central Shanghai. For Hermsa luxury brand catering to the very wealthy rather than the merely well-offits about showing up across the digital and physical worlds in a joined-up way that expresses both its long-standing craft heritage and brand personality. Quiet luxury Once, luxury brands played into peoples desire to peacock by being seen to wear a particular label and do so loudly. Now, this has given way to the opposite: quiet luxury. Obsession with labels, which peaked in the 1990s, has been replaced by desire for the understated luxury epitomised by The Row, Joseph, and Maison Margielaa brand underpinned with an if you know, you know ethos thats won cult following both east and west. These brands cover the spectrum from high-end avant-garde elegance to everyday essentials crafted with aesthetic care and sensibility. New luxury subsets have also emerged in related areas such as health, say Sakara Life looking to define luxury wellness, or the Oura smart ring taking a tech-forward approach, and Augustinus Bader aiming for high tech, clean, sustainable luxury. Meanwhile, quiet luxurys rise looks set to be a long-term trend. Todays Gen Z luxury consumers value experience over product as they perceive luxury as striving more for self-narration than material possessions, one recent study shows. Tomorrows luxury Arguably, how best to navigate the blurring of lines, in particular, between what sets different luxury brands apart, and whats luxury and not, is now one of the most interesting issues the luxury sector faces today. In luxury fashion, fr example, it used to be easy to caricature the different looks and styles of the products from different leading luxury fashion brands and creative directors. Now, the question is how to differentiate most effectively for new ad changing audiences. For luxury brands, the answer lies in a change in directionfrom being exclusive and product-led to becoming more accessible and experience-driven. In a market currently predicted to deliver revenue in personal luxury goods of just under $500 billion in 2025 while growing annually almost 3% by 2030. A brands willingness and ability to lean into next-gen luxury consumers desires and lifestyle, craft brand experiences that are emotionally resonant and not just functional, and reimagine their brand heritage into something timely and relevant will dictate tomorrows winners. Sairah Ashman is global CEO of Wolff Olins.
Category:
E-Commerce
In an age of convenience, global sourcing, and race-to-the-bottom pricing, Made in the USA has too often become a quaint notiona nostalgic footnote rather than a guiding principle. But for those of us in the business of making things here at home, that label still means something. In fact, it may be more important now than ever before. I lead Faribault Mill, a historic textile mill founded in 1865 in the town of Faribault, Minnesota. Over the past 160 years, our mill has outfitted pioneers heading west, supplied blankets to American troops, and woven itself into the fabric of American life. And like so many domestic manufacturers, we nearly lost it. By 2009, the mill had shut down. The looms were silent, the workforce gone, and the community left wondering what would come next. We chose revival. In 2011, a team of believers brought the mill back to lifenot as a museum piece, but as a living, breathing example of what American manufacturing can still be: resilient, modern, and deeply rooted in purpose. Were now one of the last fully vertical textile mills in the United States, managing every step of productionfrom raw wool to finished productall under one roof. It hasnt been easy, but it has been worth it. Why manufacturing still matters Theres a fundamental misunderstanding in the way we talk about manufacturing in this country. Too often, its reduced to a numbers game: labor costs, overseas pricing, efficiency. But what we lose in those calculations is what we risk giving upcontrol over our supply chains, the dignity of skilled work, and the ability to build resilience into our communities and economy. The pandemic was a wake-up call. When we couldnt access basic goods, from masks to semiconductors, we saw firsthand what happens when we outsource too much for too long. That fragility is not just inconvenient. Its dangerous. A nation that cant make its own goods has lost sovereignty over its own future. Domestic manufacturing is a strategic asset. And if we want to build a stronger, more equitable, more sustainable economy, we need to invest in iturgently and intentionally. The real value of Made in USA Manufacturing in America isnt the easy path. It requires more investment, higher labor costs, and deeper operational complexity. But the payoff is far greater than a quarterly return. At Faribault Mill, every blanket is touched by dozens of skilled artisans: spinning, dyeing, weaving, and finishing. This level of craftsmanship cant be replicated through offshoring. Its not just about quality, its about integrity. Our supply chain is tight, our environmental footprint is smaller, and our jobs are local. Every dollar spent on a Faribault Mill product reverberates through the community, supporting families, trades, and our town. Weve trained a new generation of textile workers while honoring legacy techniques passed down over decades. And weve created products that are not only beautiful and functional, but meaningful. Whether were collaborating with heritage brands like Coach or cult favorites like Supreme, our goal is the same: to show what American-made can look like when its done with vision and purpose. Change the conversation The biggest barrier to a manufacturing revival in this country isnt cost. Its mindset. Weve trained consumers to expect cheap, fast, and disposable goods. Weve defined value by what something costs, not by what it offers, not just in function, but in longevity, in sustainability, and in human impact. Its time to change that narrative. A Faribault Mill blanket will last for decadesits an heirloom piece. Its raw materials are traceable, and its makers are paid fairly. Thats value. And more and more, consumers are looking for brands that align with those values. But we need broader actionfrom business leaders willing to reinvest domestically, from policymakers who understand that smart industrial policy is a national advantage, and from consumers who see each purchase as a vote for the kind of economy they want to live in. A blueprint for the future Reviving Faribault Mill wasnt just about saving a company. It was about proving a point: that its still possible to make things in America with care, pride, and purpose. Weve invested in new equipment and product lines. Weve built partnerships across industries. And weve done it all while staying rooted in the belief that American manufacturing isnt obsoleteits essential. We are far from alone. Across the country, a new wave of makers, builders, and manufacturers are reimagining what industry can look like in the 21st century. But momentum isnt enough. If we want this movement to last, we need to embed it in policy, culture, and everyday consumer behavior. Because at the end of the day, American manufacturing isnt just about economics. Its about identity. Its about knowing that behind every product is a person, a process, a place. Its about rebuilding the kinds of jobs and industries that create real opportunity and long-term resilience. At Faribault Mill, every blanket we make carries 160 years of historyand a future thats still being written. If you believe in the promise of American manufacturing, youre already part of that story. Now lets write the next chapter together. Ross Widmoyer is CEO of Faribault Mill.
Category:
E-Commerce
Amazon is gearing up for a significant restructuring of Wonderythe podcast studio behind popular shows like Scamfluencers, Dr. Death, and Business Warsand it might be a signal that the podcasting industry is shifting to more video-centric formats. Wondery was founded in 2016 as a studio dedicated to spotlighting long-form, narrative-based podcasts (think stories and formats along the lines of This American Lifes iconic Serial). It was acquired by Amazon in 2021 at the height of the pandemic-induced podcast boom for a reported $300 million. Now, Wonderys brand and existing shows will be shuffled off into larger Amazon products as its CEO Jen Sargent and around 110 employees are let go from the company. A recent analysis from the analytics firm Grand View Research shows that the global podcasting market was estimated at $30.72 billion in 2024 and is projected to reach $131.13 billion by 2030. But while podcasting is still on an upward trajectory, the way that fans consume podcasts is clearly shifting. Today, listeners are turning to podcasts that also include a video component, with popular podcasts like The Joe Rogan Experience and Call Her Daddy increasingly relying on repostable video formats. The podcast landscape has evolved significantly over the past few years, Steve Boom, Amazons vice president of audio, Twitch, and games, wrote in a memo to Wondery staff that was viewed by Fast Company. The rise of video has also blurred the lines on what it means to be a podcast creator. Bad news for audio-only podcasts In an initial report on August 4, Bloomberg claimed that Amazon was planning to fully shutter Wondery. However, Amazon has since clarified that it is not closing down the brand and instead plans to keep at least some of its properties afloat under a new structure, but things are changing. The team responsible for Wondery’s narrative podcast series, including Dr. Death, Business Wars, and American Scandal, will now report to Amazons Audible platform. Meanwhile, celebrity-led podcasts including Dax Shepards Armchair Expert and Jason and Travis Kelces New Heights will join a new organization called Creator Services under the Amazon umbrella. “This new team will continue to operate our creator-led podcast studio under the Wondery brand, working with a select number of top creators to drive scaled listenership and unlock broader and long-lasting relationships across Amazon,” Boom wrote in the staff memo. In response to Fast Company‘s request for more details on whether any Wondery shows will be canceled, an Amazon spokesperson shared: “We’re still finalizing content distribution details for specific shows, and will share updates once decisions are made.” On the reasoning behind the restructuring, the spokesperson added: “The podcast landscape has evolved significantly in the past few years, particularly with the rise of video-forward, creator-led content. These changes reflect that evolution and will streamline how Wondery integrates further into Amazon.” The video-based podcast evolution is having ripple effects across the entire industry. Currently, YouTube is the number one place that podcasts are consumed, topping 1 billion total podcast views per month this February. This year, Spotify picked up on the trend by leaning hard into its video podcasting arm, taking cues from social media in its UX design. Netflix has also signaled that it may make a move into video podcasting.
Category:
E-Commerce
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