Luxury sector faces dilemma of 'exceptional Maisons' versus groups seeking recovery

The luxury sector is entering a new era of polarisation, according to several recently published articles and market studies. This dynamic now pits two types of players against each other: 'exceptional Maisons', capable of preserving rarity and vertical integration, and multi-brand groups that must redefine their strategy to regain their prestige.

Growing divide between ultra-integrated houses and struggling groups

According to Antoine Fraysse-Soulier's column in Luxus Plus, the gap is widening between Maisons like Hermès, which controls its production chain, and groups like Kering. Luxus Plus notes that some houses “with a clear identity and total industrial control” are showing solid growth. In contrast, groups in recovery are struggling to stabilise their flagship brands, such as Gucci.

Meanwhile, KPMG's study, “Luxury in transition(s)”, confirms this polarisation. According to KPMG, “Very Important Clients” (VICs)—the ultra-rich and ultra-loyal—represent less than 2 percent of the clientele but generate nearly 40 percent of turnover for luxury Maisons. KPMG adds that “luxury fatigue” is leading to a slowdown in demand. Some industry professionals note that sharp price increases have weakened the bond of trust with a portion of their clientele.

Integration as safeguard: value chain example

Hermès embodies this 'exceptional Maison' stance. According to the Luxus Plus column, the brand continues to prioritise organic growth and strict control of its workshops. It also avoids dependency on mass tourism or wholesale.

This strategy allows it to maintain very high margins. According to the same source, its “operating margins are expected to exceed 40 percent again” in the third quarter of 2025. KPMG adds that the importance of an “emotional service” is crucial for these VIC clients. “Each touchpoint is carefully designed to exceed expectations,” their report explains.

Groups in recovery: Kering as example

Kering's case perfectly illustrates these challenges. In the third quarter of 2025, the group's consolidated turnover declined, with Gucci as the main point of weakness, down 14 percent on a like-for-like basis.

The recovery involves a turnaround plan: asset reductions, moving upmarket and greater selectivity in distribution. This approach is necessitated by the iron law of luxury. In a context of economic volatility, only players capable of combining rarity, know-how and strategic coherence will remain safe havens.

Valuation premium for 'safe-haven houses'

The McKinsey / Global Fashion Index 2025 study, featured in “The State of Fashion 2025”, confirms that the “Super Winners” of luxury—LVMH, Hermès, Richemont and Kering — continue to capture a disproportionate share of the sector's economic profit.

Despite a slowdown in 2024, these groups have so far managed to maintain “high prices while sustaining strong demand”. KPMG insists on the need to strengthen the fundamentals — “know-how, quality, promises kept”—to restore customer trust and justify high prices.

Long-term strategy and authenticity

In a polarised market, only authenticity, image control and rarity allow 'exceptional Maisons' to retain their valuation premium. They can also remain safe havens for investors, even in an uncertain macroeconomic environment.

This analysis is largely validated by public data. Columns from Luxus Plus, strategic reports from KPMG and market studies from McKinsey all point to the same polarisation. This is not simply a narrative trend but a structural shift in luxury. Production intelligence and authenticity are becoming assets for resilience, forcing multi-brand groups to adapt their models to persist.

This article was translated to English using an AI tool.

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