Many of Europe's biggest luxury goods makers have had a torrid year as consumers kept purse strings tight despite inflation and interest rates easing in most markets.
HSBC captured the mood of the industry when it released a report on the eight leading luxury goods makers titled Cruel Summer, a nod to the Taylor Swift hit. That report radically reduced growth to 2.8 per cent for this year, down from a previous 5.5 per cent forecast.
As Donald Trump moves back into the White House, the winter is shaping up to deliver more bleak news. Will the magnate follow through on his threat to slap tariffs of up to 20 per cent on all goods entering the US, including the high-end labels?
Envious glances have been cast at one of the few brands to thrive in 2024. Italian stalwart Prada fared better than most, notching up an 18 per cent rise in sales in the nine months to the end of September, compared to the same period in 2023. Some of the strength in Prada's figures was provided by 97 per cent growth in its Miu Miu brand. But, in contrast, much of the rest of the luxury market continued to struggle.
For example, the handbag maker Mulberry saw a 19 per cent fall in revenues to £56.1 million in the six months to the end of September. The British brand told its shareholders of a “difficult trading environment and uncertain macroeconomic trends”.
So what separated the two performances? Was Prada doing anything different to the rest of the pack? “Our brands remain desirable and relevant, thanks to the strength and consistency of their identity, creativity and sharp positioning,” Prada's group chief executive Andrea Guerra said at the time.
In part, Prada's and Mulberry's experiences illustrate the mixed fortunes of the luxury goods market in 2024, where much depended on who are you are, what you make and to whom you sell it. For Jelena Sokolova, analyst with Morningstar, it is quite hard to pinpoint anything specific that Prada is doing that is radically different from the other luxury goods makers.
“They have cleaned up distribution channels, removed discounts in mainline stores and improved supply chain. However, it's common among peers and not unique to them,” she told The National. “I think Prada, and specifically Miu Miu, is benefitting from very strong fashion cycle. Their styling is well executed, their marketing campaigns are well thought-out and creative.
“Several products went viral, for example the micro-skirt, and many are widely adopted by influencers. The brand is very popular with Gen Z, like Gucci was very popular with millennials in 2016. I wouldn’t say they are inventing the wheel, but I think they execute very well and benefit from some luck, which is always the case with consumer appeal.”
Shrinking market
Bain and Company's recent study of the personal luxury goods sector concluded the market in 2024 is likely to have shrunk by two per cent to €363 billion ($381 billion), but individual company performances have been much more nuanced. Beauty and eyewear have performed well and jewellery has held up strongly, but shoes and watches struggled. “The tighter conditions are polarising the market,” the study said. “We estimate that only about a third of luxury brands will emerge from 2024 with positive growth, down from two-thirds a year earlier. Many brands are set to suffer a drop in their revenue.”
Much, but certainly not all, of the blame for the luxury market's woes lies at the doorstep of the Chinese consumer. Shoppers kept wallets and purses firmly shut this year as the fallout from the country's property crisis continued to keep a lid on luxury spending. A study of 2,000 high-end Chinese consumers by the investment company TD Cowen found luxury goods were among “the categories consumers intend to spend less on”. What worried many analysts was a finding in the report that in upper-middle-class Chinese households with an average income of $70,000 a year – what might be termed “aspirational consumers” – only 13 per cent indicated that they would be increasing their spending on luxury goods.
However, as Ms Sokolova noted, the slowdown in China is just part of the problem in the luxury goods sector. “American and European demand that fuelled the sector’s post-pandemic strong growth softened in 2023 and 2024 from unsustainable highs,” she told The National. “European and American luxury buying was up 20 to 25 per cent annually from 2019 to 2022, versus a low to mid-single-digit growth trajectory before Covid, thanks to pandemic savings, payment cheques in the US and strong markets. Chinese consumers still should have pandemic-time savings, but their sentiment is subdued due to a weak real estate market. We saw a weak Chinese real estate market preceding luxury downturns in 2015 and 2016 too.”
Generally speaking, the highest of the high-end luxury brands fared better than what might be called the aspiration brands in 2024. Hermes brought in an 11 per cent rise in sales to €3.7 billion in its third quarter, with Bernstein luxury analyst Luca Solca calling the French bag-maker's shares the “best current opportunity” for investors to protect their luxury sector portfolios from “a difficult second half of 2024”. In contrast, British firm Mulberry, having seen its pre-tax loss widened to £15.7 million ($19.9 million) in the six months to the end of September, announced it was aiming to cut the prices of most of its luxury handbags to less than £1,095 ($1,383) in an effort to boost sales and broaden the brand's appeal.
Likewise, analysts felt that Burberry stumbled in recent years as it made a bid for the “higher ground” in the luxury space by raising its prices in a bid to attract more well-heeled consumers. The UK brand's fortunes turned when that strategy did not work. Its new chief executive Joshua Schulman has spent the last five months trying to turn the Burberry ship around by taking it back to basics – selling to aspirational consumers at prices they can afford. “A recovery in Burberry’s performance is far from assured with headwinds likely to persist,” said Keith Bowman at Interactive Investor. “That said, the new group head looks to have made an encouraging start with existing shareholders now likely to stay cautiously patient.”
Investors seem to be encouraging the luxury goods maker to stick with what they know for the time being; do not try anything radical, just try to weather those economic headwinds. Analysts at Bank of America predict the fourth quarter will be better than the third for most luxury goods makers, as mainland China demand slowly steadies and the US market sees some recovery in spending. The improvement seems to be coming from Americans and non-Chinese Asian consumers, the bank said in a research note.
However, according to Bain and Company, not only is the personal luxury market set for a 2 per cent erosion this year, consumers are disappearing, especially in the younger age brackets.
“Luxury spending has shown remarkable stability this year, despite macroeconomic uncertainty, largely driven by consumers’ appetite for luxury experiences,” said Claudia D'Arpizio, partner at Bain and Company. “And yet, 50 million luxury consumers have either opted out of the luxury goods market or been forced out of it in the last two years. This is a signal for brands that it’s time to readjust their value propositions. To win back customers, particularly the younger ones, brands will need to lead with creativity and expand conversation topics.”
The Trump factor
Aside from the recovery of Chinese consumer sentiment, there is another big question hanging over the prospects for the global luxury goods market in 2025. Will Mr Trump follow through with tariffs in 2025? If he does, Ms D'Arpizio said, it would be “nightmare”, leading to a situation where “European brands could end up being super expensive in an already expensive environment’'. After all, the US is the second-largest luxury goods market and accounts for nearly one-third of all global high-end sales of apparel, leather goods and shoes.
But there is a flipside to how the second Trump presidency will affect luxury goods makers, many of whom are based in Europe. Planned tax cuts by the Trump administration, accompanied by a potential stock market rally would boost the wealth of luxury goods consumers. According analysts at UBS, that could “drive improving consumer sentiment in the US”. However, American consumers enriched by the Trump effect and armed with strengthened dollars, may choose to move their spending offshore to Europe “in order to take advantage of any potential regional price gap”, which was as much as 11 per cent in September. Plus, of course, in the EU (but still not in the UK) tourists can get a 20 per cent VAT refund.
Market misconceptions
Nonetheless, if the threatened tariffs did spark a wider trade war between the US and China, any recovery in consumer sentiment in China could be short-lived, the broader effect of which would lie heavily on the personal luxury goods market. However, number-crunching UBS analysts claim the contribution of demand in China for global luxury goods in recent years has been “one of the biggest misconceptions in the market”. UBS contends that Chinese demand is lower than previously thought and “the Americans have had the same contribution to growth as that of the Chinese, around 25 per cent”.
As such, according to the UBS analysts, investors in luxury goods companies pay too little attention to consumers outside China and the US. “On our estimates, the key drivers of sales growth since 2015 have been other major nationalities such as the Americans, the Europeans (around 20 per cent of growth), and other major clusters including Middle Easterners, South Koreans and Japanese (together around 40 per cent of growth). That's why we believe the trends among those consumers should be the focus heading into 2025,” they said.
Indeed, figures from Bank of America show that in terms of tax refunds, which tourists take advantage of to buy luxury goods when travelling, only international travellers from the Middle East increased the value of their tax refunds between the third quarter of this year and the fourth quarter (to date).
Many luxury goods analysts feel the market should be stronger next year. Deutsche Bank is forecasting growth of 5 per cent, as Chinese consumer sentiment improves significantly. But some of the big luxury companies are hedging their bets and looking for ways to diversify. The luxury colossus LVMH has moved into the top-end tourism sector with the purchase of a stake in Les Domaines de Fontenille, a small high-end hotel chain with properties in Tuscany and Minorca. For others, the path back to profitability will be laser-focused on brands and “back to basics” strategies. “To secure future growth, brands will need to rethink their luxury equations, re-establishing creativity and blending old and new playbooks,” said Federica Levato, a partner at Bain and Company.
While some luxury brands, such as Hermes, seem to be more insulated from the tempests of the world economy than others, the fortunes of most are still reliant on the ability and willingness of consumers to splash the cash. The past is often an indicator of the future, Ms Sokolova told The National. “Over the last 30 years, luxury downturns lasted from one to two years and were followed by strong recovery. So, if history is any guide, recovery could happen next year or in 2026.”
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SHAITTAN
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Company Profile:
Name: The Protein Bakeshop
Date of start: 2013
Founders: Rashi Chowdhary and Saad Umerani
Based: Dubai
Size, number of employees: 12
Funding/investors: $400,000 (2018)
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Trump v Khan
2016: Feud begins after Khan criticised Trump’s proposed Muslim travel ban to US
2017: Trump criticises Khan’s ‘no reason to be alarmed’ response to London Bridge terror attacks
2019: Trump calls Khan a “stone cold loser” before first state visit
2019: Trump tweets about “Khan’s Londonistan”, calling him “a national disgrace”
2022: Khan’s office attributes rise in Islamophobic abuse against the major to hostility stoked during Trump’s presidency
July 2025 During a golfing trip to Scotland, Trump calls Khan “a nasty person”
Sept 2025 Trump blames Khan for London’s “stabbings and the dirt and the filth”.
Dec 2025 Trump suggests migrants got Khan elected, calls him a “horrible, vicious, disgusting mayor”
Origin
Dan Brown
Doubleday
Winners
Ballon d’Or (Men’s)
Ousmane Dembélé (Paris Saint-Germain / France)
Ballon d’Or Féminin (Women’s)
Aitana Bonmatí (Barcelona / Spain)
Kopa Trophy (Best player under 21 – Men’s)
Lamine Yamal (Barcelona / Spain)
Best Young Women’s Player
Vicky López (Barcelona / Spain)
Yashin Trophy (Best Goalkeeper – Men’s)
Gianluigi Donnarumma (Paris Saint-Germain and Manchester City / Italy)
Best Women’s Goalkeeper
Hannah Hampton (England / Aston Villa and Chelsea)
Men’s Coach of the Year
Luis Enrique (Paris Saint-Germain)
Women’s Coach of the Year
Sarina Wiegman (England)
'The Batman'
Stars:Robert Pattinson
Director:Matt Reeves
Rating: 5/5
Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
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Company%20Profile
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Mobile phone packages comparison
Company%C2%A0profile
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10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
- Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
The Specs
Price, base Dh379,000
Engine 2.9-litre, twin-turbo V6
Gearbox eight-speed automatic
Power 503bhp
Torque 443Nm
On sale now
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
FIXTURES
Thu Mar 15 – West Indies v Afghanistan, UAE v Scotland
Fri Mar 16 – Ireland v Zimbabwe
Sun Mar 18 – Ireland v Scotland
Mon Mar 19 – West Indies v Zimbabwe
Tue Mar 20 – UAE v Afghanistan
Wed Mar 21 – West Indies v Scotland
Thu Mar 22 – UAE v Zimbabwe
Fri Mar 23 – Ireland v Afghanistan
The top two teams qualify for the World Cup
Classification matches
The top-placed side out of Papua New Guinea, Hong Kong or Nepal will be granted one-day international status. UAE and Scotland have already won ODI status, having qualified for the Super Six.
Thu Mar 15 – Netherlands v Hong Kong, PNG v Nepal
Sat Mar 17 – 7th-8th place playoff, 9th-10th place playoff
COMPANY%20PROFILE
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HIJRA
Starring: Lamar Faden, Khairiah Nathmy, Nawaf Al-Dhufairy
Director: Shahad Ameen
Rating: 3/5
Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
RESULTS
Argentina 4 Haiti 0
Peru 2 Scotland 0
Panama 0 Northern Ireland 0
UK’s AI plan
- AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
- £10bn AI growth zone in South Wales to create 5,000 jobs
- £100m of government support for startups building AI hardware products
- £250m to train new AI models
RESULTS
1.30pm Handicap (PA) Dh 50,000 (Dirt) 1,400m
Winner AF Almomayaz, Hugo Lebouc (jockey), Ali Rashid Al Raihe (trainer)
2pm Handicap (TB) Dh 84,000 (D) 1,400m
Winner Karaginsky, Tadhg O’Shea, Satish Seemar.
2.30pm Maiden (TB) Dh 60,000 (D) 1,200m
Winner Sadeedd, Ryan Curatolo, Nicholas Bachalard.
3pm Conditions (TB) Dh 100,000 (D) 1,950m
Winner Blue Sovereign, Clement Lecoeuvre, Erwan Charpy.
3.30pm Handicap (TB) Dh 76,000 (D) 1,800m
Winner Tailor’s Row, Royston Ffrench, Salem bin Ghadayer.
4pm Maiden (TB) Dh 60,000 (D) 1,600m
Winner Bladesmith, Tadhg O’Shea, Satish Seemar.
4.30pm Handicap (TB) Dh 68,000 (D) 1,000m
Winner Shanaghai City, Fabrice Veron, Rashed Bouresly.
Ticket prices
- Golden circle - Dh995
- Floor Standing - Dh495
- Lower Bowl Platinum - Dh95
- Lower Bowl premium - Dh795
- Lower Bowl Plus - Dh695
- Lower Bowl Standard- Dh595
- Upper Bowl Premium - Dh395
- Upper Bowl standard - Dh295
McLaren GT specs
Engine: 4-litre twin-turbo V8
Transmission: seven-speed
Power: 620bhp
Torque: 630Nm
Price: Dh875,000
On sale: now
Indika
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Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
The bio
Favourite food: Japanese
Favourite car: Lamborghini
Favourite hobby: Football
Favourite quote: If your dreams don’t scare you, they are not big enough
Favourite country: UAE
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
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The Internet
Hive Mind
four stars
The biog
Name: Salem Alkarbi
Age: 32
Favourite Al Wasl player: Alexandre Oliveira
First started supporting Al Wasl: 7
Biggest rival: Al Nasr
Jurassic%20Park
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Moonfall
Director: Rolan Emmerich
Stars: Patrick Wilson, Halle Berry
Rating: 3/5
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
Did you know?
Brunch has been around, is some form or another, for more than a century. The word was first mentioned in print in an 1895 edition of Hunter’s Weekly, after making the rounds among university students in Britain. The article, entitled Brunch: A Plea, argued the case for a later, more sociable weekend meal. “By eliminating the need to get up early on Sunday, brunch would make life brighter for Saturday night carousers. It would promote human happiness in other ways as well,” the piece read. “It is talk-compelling. It puts you in a good temper, it makes you satisfied with yourself and your fellow beings, it sweeps away the worries and cobwebs of the week.” More than 100 years later, author Guy Beringer’s words still ring true, especially in the UAE, where brunches are often used to mark special, sociable occasions.
Normcore explained
Something of a fashion anomaly, normcore is essentially a celebration of the unremarkable. The term was first popularised by an article in New York magazine in 2014 and has been dubbed “ugly”, “bland’ and "anti-style" by fashion writers. It’s hallmarks are comfort, a lack of pretentiousness and neutrality – it is a trend for those who would rather not stand out from the crowd. For the most part, the style is unisex, favouring loose silhouettes, thrift-shop threads, baseball caps and boyish trainers. It is important to note that normcore is not synonymous with cheapness or low quality; there are high-fashion brands, including Parisian label Vetements, that specialise in this style. Embraced by fashion-forward street-style stars around the globe, it’s uptake in the UAE has been relatively slow.
THE BIO:
Sabri Razouk, 74
Athlete and fitness trainer
Married, father of six
Favourite exercise: Bench press
Must-eat weekly meal: Steak with beans, carrots, broccoli, crust and corn
Power drink: A glass of yoghurt
Role model: Any good man
UAE cricketers abroad
Sid Jhurani is not the first cricketer from the UAE to go to the UK to try his luck.
Rameez Shahzad Played alongside Ben Stokes and Liam Plunkett in Durham while he was studying there. He also played club cricket as an overseas professional, but his time in the UK stunted his UAE career. The batsman went a decade without playing for the national team.
Yodhin Punja The seam bowler was named in the UAE’s extended World Cup squad in 2015 despite being just 15 at the time. He made his senior UAE debut aged 16, and subsequently took up a scholarship at Claremont High School in the south of England.
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