The luxury sector is entering a new era of polarization: “exceptional maisons” able to maintain rarity and vertical integration face off against multi-brand corporations. The latter must redefine their strategy to regain their prestige. This is the conclusion of several recently published articles and market studies.
Growing gap between ultra-integrated fashion houses and struggling corporations
According to a column by Antoine Fraysse-Soulier in Luxus Plus, the gap is widening between maisons like the French luxury company Hermès, which has control of its value chain, and large companies like the French luxury goods group Kering. Fraysse-Soulier notes that some houses “with a clear identity and complete industrial control” are experiencing solid growth. In contrast, corporations that are on the road to recovery are struggling to stabilize their core brands. An example of this is the Italian fashion house Gucci.
The study “Luxury in Transition(s)” by the international auditing firm KPMG confirms this polarization. According to KPMG, “Very Important Clients,” or VICs for short, make up less than two percent of customers. However, these ultra-rich and ultra-loyal customers generate almost 40 percent of sales for luxury maisons. KPMG adds that “luxury fatigue” is leading to a slowdown in demand. Some industry experts note that sharp price increases have weakened the relationship of trust with some customers.
Integration as protection: example of the value chain
Hermès embodies this attitude of an “extraordinary maison”. According to the Luxus Plus column, the brand continues to prioritize organic growth and strict control of its workshops. It also avoids dependence on mass tourism or wholesalers.
This strategy allows the company to maintain very high margins. According to the same source, “operating margins are expected to exceed 40 percent again in the third quarter of 2025.” KPMG adds that the importance of “emotional service” is crucial for these VIC customers. “Every touchpoint is carefully designed to exceed expectations,” the report explains.
Corporations on the road to recovery: example Kering
The Kering case perfectly illustrates these challenges. In the third quarter of 2025, the group’s consolidated sales fell. Core brand Gucci was the main weak point, with a decline of 14 percent on a comparable basis.
The recovery includes a turnaround plan that includes asset reductions, higher market positioning and greater selectivity in distribution. This approach is necessitated by the iron law of luxury. In an environment of economic volatility, only actors who can combine rarity, know-how and strategic coherence will remain safe havens.
Upgrading “safe” companies
The McKinsey study / Global Fashion Index 2025 presented in “The State of Fashion 2025” confirms a trend: the “super winners” of the luxury industry – the French luxury goods group LVMH, Hermès, the Swiss luxury goods group Richemont and Kering – continue to capture a disproportionately high share of the industry’s economic profits.
Despite a slowdown in 2024, these corporations have so far managed to maintain “high prices with continued strong demand.” KPMG insists on the need to strengthen fundamentals such as “know-how, quality and promises kept” to restore customer trust and justify high prices.
Long-term strategy and authenticity
In a polarized market, only authenticity, image control and rarity enable “exceptional maisons” to maintain their appreciation. They can remain “safe havens” for investors even in an uncertain macroeconomic environment.
This analysis is largely confirmed by public data. Columns from Luxus Plus, strategic reports from KPMG and market studies from the US management consultancy McKinsey all point to polarization. This is not simply a narrative trend, but a structural change in the luxury segment. Production intelligence and authenticity become assets for resilience. This forces multi-brand companies to adapt their models in order to survive.
This article was created using digital tools translated.
FashionUnited uses artificial intelligence to speed up the translation of articles and improve the end result. They help us to make FashionUnited’s international reporting quickly and comprehensively accessible to a German-speaking readership. Articles translated using AI-based tools are proofread and carefully edited by our editors before they are published. If you have any questions or comments, please email [email protected]