After years of global growth, the luxury industry is facing a new foe: “underconsumption”. On TikTok, #underconsumptioncore emerges as a trending topic, as the next generation of potential shoppers swap tips on how to look good while buying and spending less. The entire sector is struggling as consumers wince at luxury prices, and are left bemused by the rapid turnaround of designers.
Last week, shares in Kering, owner of luxury labels including Gucci, Balenciaga, Yves Saint Laurent and Alexander McQueen, hit a seven-year low after reporting that operating income in the second half of the year would be down 30% after a 42% drop in the first half.
