As luxury labels grapple with declining sales and e-commerce giants change hands at bargain prices, the once impervious market is facing a reckoning. From Mayfair's Matchesfashion to Farfetch, the struggle for survival is palpable, with market values plummeting and acquisitions becoming increasingly distressed.

“The big labels insist their materials, craftsmanship and design justify high prices. If they reduce the price, they dilute their brand value and risk killing their business,” explained our CEO & co-founder, Jonathan Siboni, in the article.

Siboni anticipates that luxury brands will emulate the strategy of luxury car manufacturers to stimulate growth. This entails launching new products with reduced prices, akin to the approach adopted by high-end automakers. “Porsche cannot reduce the price of its iconic 911 sports car without hitting margins and devaluing every 911 it has ever sold and the brand itself,” he said. “So what has it done to grow? Introduce new products that are cheaper, such as the Boxster, the Cayman or the Macan.”

For an in-depth analysis of the challenges facing luxury brands and the strategies they are employing to navigate this tumultuous terrain, delve into the complete article on The Sunday Times, authored by John Arlidge.