Inside The Luxury Market.
The luxury market is facing a serious reality check. LVMH, the house behind Louis Vuitton, Dior, Tiffany & Co., and Sephora, has just been dethroned as Europe’s most valuable luxury company — overtaken by Hermès. This shift came after LVMH reported weaker-than-expected sales in the first quarter, especially in the U.S. and China. Shoppers in key markets are pulling back on beauty products and high-end spirits, signaling that even the giants of luxury aren’t immune to changing economic tides.
Hermès, known for its ultra-exclusive handbags and steady, controlled growth strategy, has now pulled ahead with a market value of €247 billion — just above LVMH’s €246 billion. The shift reflects broader changes in consumer behavior and investor sentiment in what many are calling a “post-post-COVID” market. With LVMH focusing more on middle-range luxury, some see this as a vulnerable area in a market where exclusivity may be more resilient than accessibility. What are your thoughts on this?
