smh.com.au
Secondhand Luxury Thrives as Major Brands Struggle in Australia
A Sydney couple's thriving secondhand designer handbag stall contrasts sharply with declining sales and profits of major luxury brands like Chanel (-16% sales, -87% profit) and Tiffany & Co. (-6.2% revenue, -50% profit) in Australia during 2024, reflecting a global shift in consumer preferences toward affordability and sustainability in the luxury market.
- What factors contribute to the contrasting performance of independent secondhand luxury sellers and established luxury brands in Australia's market?
- In Sydney, Australia, a husband-and-wife team's secondhand designer handbag stall at Glebe Markets thrives, contrasting with declining profits of major luxury brands like Chanel, Tiffany & Co., and Giorgio Armani in 2024. The stall's success highlights a shift in consumer preference towards more affordable options and secondhand luxury goods.
- How do changing consumer preferences, such as the rise of 'quiet luxury' and sustainable consumption, impact the profitability and strategies of luxury brands?
- The success of the Sathalets' stall reflects broader global trends. Luxury brands are facing declining sales due to factors like creative stagnation, aggressive pricing, and a shift towards 'quiet luxury.' The rise of the pre-owned luxury market, driven by younger consumers' preference for sustainability and value, further contributes to this shift.
- What are the long-term implications for the luxury market, considering the growing influence of younger consumers and the expansion of the pre-owned luxury sector?
- The luxury market's future will likely involve continued growth in the pre-owned sector and a focus on brands catering to younger demographics. Brands like Miu Miu, with its innovative and bold designs, are demonstrating success in appealing to Gen Z. Traditional luxury brands will need to adapt to these shifting preferences to maintain profitability.
Cognitive Concepts
Framing Bias
The article's framing subtly favors the narrative of the decline of traditional luxury brands and the rise of secondhand luxury by starting with the success story of the Sathalets' stall and using it as a counterpoint to the struggles of established luxury houses. The headline could be more neutral. The use of phrases like "battling declining profits" and "tough slowdown" emphasizes the negative aspects of the traditional luxury market.
Language Bias
The article uses language that leans slightly towards negativity when discussing established luxury brands, employing terms like "declining profits," "slumped," and "struggling." While these are factually accurate, the overall tone could be made more neutral by using less emotive vocabulary. For example, instead of "battling declining profits," one could write "experiencing decreased profitability.
Bias by Omission
The article focuses heavily on the decline of traditional luxury brands and the rise of secondhand luxury, potentially omitting other contributing factors to the shifts in consumer preferences, such as changing economic conditions beyond simple "tightening of wallets." The impact of social media trends and influencer marketing on luxury consumption is also not explored.
False Dichotomy
The article presents a somewhat simplistic dichotomy between "big logo" luxury brands and the "quiet luxury" trend, potentially overlooking the complexity and nuances within the luxury market. While these trends exist, many brands might be adopting strategies that incorporate elements of both.
Gender Bias
The article features both male and female voices and does not exhibit overt gender bias in its language or representation. However, the inclusion of a woman's opinion on the quality of vintage handbags might be considered a subtle reinforcement of the gender stereotype associating women with fashion and handbags.
Sustainable Development Goals
The article highlights the rise of the secondhand luxury market, driven by consumers seeking more sustainable consumption patterns and better value. This directly contributes to SDG 12 (Responsible Consumption and Production) by promoting reuse and reducing waste in the fashion industry. The growing popularity of platforms like Vestiaire Collective, Vinted, and Resellify further exemplifies this shift towards a circular economy.