Fashion Enters a "Big Reset" Amid Market Pressures
Following creative director shifts at major houses like Chanel, analysts are describing a “big reset” in the luxury fashion industry. Amid softening revenues and concerns over overpricing, brands are under pressure to re-energize their creative studios and client relationships. The new guard of creative leaders is expected to foster more collaborative team cultures and pivot brand narratives from price-led exclusivity to authenticity and craftsmanship.
- Despite Chanel's revenues reaching a record $19.7 billion in 2023 under Virginie Viard, criticism over the creative direction's lack of "buzz" and perceived dilution of the brand's authority led to her departure. Her successor, Matthieu Blazy from Bottega Veneta, was appointed in December 2024 and will present his first collection in October 2025. - Sabato De Sarno's tenure at Gucci lasted just two years, ending abruptly in February 2025 after his minimalist aesthetic failed to reignite sales. During his time, Gucci's revenues fell, with a 25% drop in the third quarter of 2024, contributing to Kering's shares falling by nearly 40% over the past year. Balenciaga's Demna was named as his successor in March 2025. - Under Maria Grazia Chiuri's leadership since 2016, Dior's revenue has surged from approximately $2.1 billion to over $7 billion, driven by a strategy that blends modernization with the house's heritage. The brand's overall revenue, including menswear led by Kim Jones, has more than doubled between 2017 and 2023. - Brands are re-evaluating aggressive pricing strategies after a period of significant hikes, which saw a classic Chanel 2.55 handbag increase from around £3,000 in 2010 to £11,000. Analysts now observe more moderate increases as consumer resistance grows, particularly in key Asian markets. - The luxury market's growth is recalibrating, with global personal luxury goods sales seeing their first decline in 15 years in 2024. This slowdown is polarizing brand performance, with an estimated one-third of brands experiencing growth in 2024, compared to 65% in 2023. - Generative AI is moving from experimentation to implementation in major campaigns. In February 2026, Gucci launched a sponsored AI Lens on Snapchat, allowing users to become characters from its "La Famiglia" collection. This follows AI-assisted campaigns by Moncler, Valentino, and Jil Sander in 2025. - AI-powered virtual try-on (VTO) is becoming a key tool for enhancing customer experience and reducing returns. Dior integrates VTO in its boutiques and online, while Gucci has utilized AR for trying on sneakers, sunglasses, and hats since 2019.
