Chanel’s Head of Watches and Jewelry Warns of a ‘Crisis in Luxury’
While economic factors continue to erode luxury growth, a far more insidious threat looms, the trivialization of luxury itself. In a recent interview with Le Temps, Frédéric Grangié, Chanel’s Head of Watches and Jewelry, offered a noteworthy assessment of the industry’s shifting landscape.
Grangié warns that the luxury industry is facing a crisis, one that extends beyond temporary economic slowdowns. This shift is reshaping the allure of exclusivity, as luxury loses its mystique and customers grow weary of high-end brands.
2025 and 2026 Forecast Complicated Years for the Luxury Industry
In recent years, luxury has seen impressive growth in China. But now two critical factors – an economic slowdown spurred by a real estate crisis and high youth unemployment – have slowed demand. However, Grangié’s analysis goes further. He argues that the issue stems from factors like the economic and geopolitical climate, as well as the overdistribution of luxury brands saturating key markets. Yet, an even deeper threat looms: luxury fatigue.
This fatigue is “a feeling that affects mature markets, where customers are beginning to question the meaning of this sector.” “While economic and geopolitical issues are cyclical and will pass,” Grangié says, “this crisis will impact our business more deeply.” In fact, “customers are tired of being fleeced by luxury.”
So, looking to 2025 and 2026, Grangié anticipates turbulent times ahead, with crises in the luxury sector likely to become “more frequent.” To navigate these challenges, he insists brands must adopt a focus on creativity and make bold, long-term choices that reestablish the value of exclusivity.
By the way, we previously addressed the topic of luxury in one of our posts: Luxury is Dead, which we invite you to read again.
Conclusion: How to overcome the luxury trivialization
The luxury market faces a crisis. Although optimistic voices like Carlo Capasa, President of the Italian Chamber of Fashion, project a recovery by late 2025, this seems uncertain. For Grangié, the issue isn’t merely an economic downturn or geopolitical tension. It’s the growing trivialization of luxury.
His response is clear: genuine creativity and a long-term strategy are the only paths forward if luxury brands hope to recapture their essence and survive the mounting crisis.
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