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lawrenceroman.eth
@lawrenceroman
It’s not that simple. I’m not defending the extremely high margins on some luxury products like Balenciaga, but the reality is there are many hidden costs for the Nike & Apple of the world that customers never see and factories never bear. One of the biggest expenses in the P&L is retail real estate. example, a Nike flagship store can easily pay over $50K per month in rent; even outside major cities. In major cities, that number can exceed $100K, all to maintain brand presence. The same applies to Apple. Retail operations are a core part of the brand and represent a significant share of total expenses. What these factories ads on TikTok create is short term chaos none long term solution lol … people will flock to them and many will be disappointed.. not saying everyone Flocking towards shiny new toy will automatically result on a rug lol sorry I’m digressing 😂😎
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Trish🫧
@trish
Agree with this. My hot take is luxury goods will suffer until conditions improve. Many won’t make a comeback. There will be new “luxury goods” after all of this and I’m really curious what they will look like
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lawrenceroman.eth
@lawrenceroman
My long-standing hot take is that the kind of luxury we saw in the ’80s and ’90s is gone for good. Going forward, luxury fashion will become increasingly fragmented on the clothing side, while they will expand in coffee shops, restaurants and hotels. Major conglomerates will keep absorbing talent, and emerging designers will struggle unless they focus on building strong communities and tapping into social-shopping.
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