Milan and Paris runways glitter as luxury slowdown deepens and shoppers pull back

Glitzy runway shows in Milan and Paris are masking a worsening luxury slowdown as Middle East war-related inflation squeezes shoppers and aspirational demand for handbags fades, Reuters reported via The Star on Friday, 25 September 2026.

Market pressure

Shares in Gucci owner Kering have erased all gains made since CEO Luca de Meo took the helm a year ago. LVMH, the largest luxury group, is down 37% since the start of 2026. Tod’s chairman Diego Della Valle told reporters in Milan on 18 September that this year and next will likely be a “holding period” while the market stabilises.

Costly shows, polarised brands

Industry experts say runway shows can cost as much as €10 million each. Bain and other consultancies have found middle-class shoppers spending less on luxury, intensifying competition for the wealthiest clients. Brands are still investing in stores, services and exclusive experiences even as sales decline. Deloitte’s Federico Bazzani said fewer than half of brands are growing; the choice is to invest in innovation, experience and cultural relevance — or revise pricing and accept lower margins.

Voices from Milan

Prada opened Milan Fashion Week on Tuesday, 22 September, and recently revamped its Milan flagship with private spaces for bigger spenders. London adviser David Watts said hefty price hikes have made even wealthy clients more value-conscious; brands resist cutting prices (it signals overcharging and hits margin) or cutting production (it hits revenue). OTB/Diesel chairman Renzo Rosso said on 21 September that consumers are shifting toward wellness, health, longevity, hotels and restaurants, and he does not see an imminent recovery.

Calendar and Chanel

This week in Milan: Gucci, Dolce & Gabbana and Armani. Paris Fashion Week starts 28 September with Dior and Louis Vuitton among the most watched. Chanel, whose Matthieu Blazy designs have outpaced rivals, shows Spring/Summer 2027 on 5 October. Separately, Chanel CEO Leena Nair said the house will keep investing in China long-term despite the downturn, including a renovated Plaza 66 Shanghai; Bloomberg-cited figures include first-half comparable sales growth of about 16% across regions including China, and 2025 sales up 1.8% to $19.3 billion, with the China region about 48% of revenue (Business Times / Bloomberg, 24 September).