Chanel, Armani, Tiffany's: What's killing ‘big logo' luxury brands?
Three years ago, they began adding handbags to the mix. 'We started with just one rack,' Lamme said.
Now, third-party authenticated handbags have a prized place in the centre of their busy stall, where they can sell more than 20 vintage Coach or Louis Vuitton bags from $200 to upwards of $1000 on a single weekend.
'It's getting more and more popular,' Lamme said. Some teenage girls come with their parents, who buy them their first designer bag. 'If they have three kids, they buy for three.'
The Sathalets' busy stall is a stark departure from what's happening at the big end of town. Some traditional 'big logo' luxury brands are battling declining profits and popularity among Australian shoppers who are making fewer in-store purchases and favouring more affordable options at resellers.
Fashion houses Chanel, Tiffany & Co and Giorgio Armani recorded declines among their Australian sales and profits in 2024, while Hermes and Prada have found ways to sharpen their competitive edge, according to recent financial reports filed to the corporate regulator.
Australia is no exception to global trends affecting a fall in the luxury market as it experiences its toughest slowdown since the global financial crisis, says the director of RetailOasis consultancy Trent Rigby.
Growth in the global luxury market in the years ahead is expected to slow to 1-3 per cent, from 5 per cent between 2019 and 2023, when luxury giants' profits tripled, a 2025 McKinsey report has found.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Perth Now
an hour ago
- Perth Now
Spending surges on RBA rate cut hopes
Savvy shoppers have spent more than $19.2bn online in the last three months in a sign of renewed consumer confidence and anticipated rate relief. The Australia Post eCommerce report shows a massive 7.9 million Australians are now shopping online, with every category tracked seeing a lift in spending. This was led by $4.2bn in online marketplaces, $3.9bn in food and liquor, and $2.7bn spent in on fashion. Australia Post puts the surge in online shopping down to a mix of bargain hunting Aussies targeting the end of financial year, easing cost of living pressures and households expecting further interest rate relief. Australians are spending $19.2bn shopping online. NewsWire / Nicholas Eagar Credit: NewsWire One of those taking advantage of this sales period was Central Coast mortgage holder and mum Justine Ribgy who said June was always an expensive period for her household. 'We took advantage of those online retail offers more so around household appliances that needed replacing,' she said. 'My husband and I are also in the year being 40 so we had some big gifts there and our children's birthday's fall in June and July, so when we add all that up the (end of financial year sales) is a big savings.' Australian consumers spent billions during the end of financial year sales Credit: Supplied The increase in customer spending came during a period when the Reserve Bank of Australia initially held the cash rate in April, before slashing 25 basis points in May. Households had also expected further relief in July, with a cut widely forecasted at the start of the new financial year. Instead, the central bank held the official cash rate at 3.85 per cent. Ms Ribgy said even though the RBA held the official cash rate in July, it was still a little win for households 'We have had to budget month to month with the cost of living over the last couple of years so a rate cut frees up our discretionary spending. We can be a little less frugal,' she told NewsWire. 'To be honest, even with the hold … it's still positive. It gives us that confidence to loosen the purse strings a little bit.' The increase in customer spending came after the RBA cut interest rates in May. Christian Gilles / NewsWire Credit: News Corp Australia Despite the increasing overall spend, Australia Post research showed Australians are spending less per transaction with the basket size falling by 1.6 per cent over the previous year. Instead Aussies are buying more often and are turning to marketplaces and department stores to get the cheapest price product. Australian Post general manager customer success Chelsea O'Reilly said Australians were taking their time when it comes to online shopping in order to get the best deal possible. 'Consumers are becoming a whole lot more savvy and strategic in terms of their shopping and we've seen that with an increase in the amount of time they are spending on online marketplaces and department stores,' Ms O'Reilly said. 'They are going there so they can compare brands, pricing and maximise their savings.' Aussies proved their love for a quick bargain, spurring a significant 28 per cent spike in online department store spending during the quarter. Younger Aussies remain the most likely to buy online with Millennials spending $6.9bn online, followed by Gen X at $5.3bn and Gen Z who spent $3.4bn. Ms Reilly said with more Australians choosing to spend their money online, the postal service was investing heavily to keep up with customer demand. 'We are heavily investing in delivering choice and convenience for our customers,' she said. 'This includes same day, next day, any day offerings as well as parcel lockers which we are looking to expand over the next five years.'
News.com.au
6 hours ago
- News.com.au
Louis Vuitton reveals major data breach impacting Australian customers
Louis Vuitton Australia has confirmed a data breach that exposed a wide range of customer information, including names, birthdates, contact details, purchase history and personal preferences. In an email sent to affected clients on Monday, the luxury brand revealed an 'unauthorised third party' had accessed its internal systems, taking personal information from a client database. According to the company, the data involved includes first and last names, gender, country, phone number, email address, postal address, date of birth, as well as purchase and preferences data. 'We regret to inform you that an unauthorised third party temporarily accessed our system and obtained some of your information,' the email stated. While no passwords, credit card details or bank information were compromised, Louis Vuitton has urged customers to be wary of suspicious messages or contact attempts. 'Given the nature of the data involved, we warmly recommend that you remain vigilant against any unsolicited communication or other suspicious correspondence, including emails, phone calls or text messages,' the company said. 'While we have no evidence that your data has been misused to date, phishing attempts, fraud attempts, or unauthorised use of your information may occur.' The breach was first detected on July 2, and Louis Vuitton claims it acted immediately to block the hacker's access and contain the incident. 'Technical measures were immediately taken to contain the incident after its occurrence, notably by blocking the unauthorised access,' the company wrote. 'Louis Vuitton teams are mobilised to cooperate with the competent authorities.' The company added that it had notified authorities and engaged cybersecurity experts to investigate. 'We would like to reassure you that no password nor financial information — such as credit card information, bank details, or other financial accounts, was contained in the database accessed,' the email said. The luxury fashion retailer stressed that the breach has been contained and apologised for the incident. 'We sincerely apologise for any inconvenience this situation may cause you,' it said. Louis Vuitton Australia has been asked how many people are impacted and why it took 20 days to alert customers. It comes amid a wave of data breaches on large Australian companies, which have led experts to advocate for the right to force companies to remove personal details from databases. A move they argue would help combat the growing impact of mass data theft. More than 25 million customer accounts have been exposed in just three cyber attacks involving major companies Qantas, Optus and Medibank. University of Queensland cybersecurity expert Ryan Ko told ABC that Australians exposed to cybercrime risk are 'basically just a sitting duck' when their data is leaked.
Sky News AU
7 hours ago
- Sky News AU
Warning issued as Microsoft targeted in global cyberattack
Sky News Business Editor Ross Greenwood says an urgent warning has been issued to Australian companies and organisations that use Microsoft's content management platform SharePoint. The Australian Cyber Security Centre is urging organisations to "act now" after Microsoft observed active attacks targeting on-premises SharePoint Server customers. 'The danger is that hackers are exploiting a vulnerability in SharePoint that can be used to steal sensitive data and remotely execute malicious code,' Mr Greenwood said. 'The US Cybersecurity and Infrastructure Security Agency reported evidence of active exploitation on Sunday.'
