Stories on fashion and luxury you won't read elsewhere

Energy shortages and lower demand to hit fashion and luxury

By Astrid Wendlandt
Winter is coming
Demand for luxury goods saw exuberant growth this summer as consumers traveled en masse and indulged in “revenge spending” post-Covid. Now, in this back-to-school period, the sector is making the most of an Indian summer, basking in the last rays of sunshine before winter. And this year, the frost will bite harshly. The luxury industry is not only bracing for a drop in demand in the last three months of 2022 as consumer sentiment, reflecting an increasingly adverse macro-economic environment, turns negative. It will also have to contend with the worst power shortages and supply chain disruptions in its 40-year history. Small businesses will suffer more than big ones, analysts and industry executives predict.

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