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The Downfall of Luxury as we know it

06/02/2025 BY Stephan Huber

From Artistry to Absurdity – And Why It’s Time for a Reset

Back in the days, the luxury fashion industry represented the pinnacle of creativity, style, and craftsmanship. It was a realm where visionary designers and master artisans came together to create pieces that transcended time—garments and accessories that whispered elegance and ingenuity. Today, however, this same industry resembles more of a punch-and-judy show, where headlines are dominated not by creativity, but by sensationalist tales of who’s been hired, fired, or shuffled around from one mega-brand to another.

This chaotic theater is fueled by one thing: greed. Prices are being driven to grotesque extremes, often breaking records for their absurdity, while the quality of the products themselves steadily declines. Margins are padded for the benefit of shareholders, while the consumer is left with overpriced mediocrity and a system in which he becomes a supplicant (think of the artificially induced queues in front of deserted luxury boutiques). Personal highlight: The constant advertising loop on Instagram for the obviously mercilessly overproduced Gucci/Adidas collection, which is now on sale at Best Secret. You can’t make this stuff up!

But the impact doesn’t end there.

The retail partners, especially in Europe – the very ones who helped build these iconic brands into the powerhouses they are today – have been systematically sidelined. Saddled with poor margins, rigid order regulations, and stripped of any autonomy, they are now viewed as an expendable middleman in an era of globalization and direct-to-consumer obsession. Many have been phased out entirely, under the presumption that endless growth through global expansion would be enough to sustain the machine.

This neo-feudalistic system is breaking down, and the cracks are becoming impossible to ignore. The very foundation of luxury fashion – the idea that owning a piece offers a sense of distinction and individuality – has lost its value for a growing part of modern consumers. Why spend an exorbitant amount of money if the garment actually only serves to push the quarterly report? Even more so, when the prestige associated with a brand no longer matches the product?

This collapse, while painful for some, is ultimately a good thing. It opens the door for something new: fresh ideas, compelling stories, innovative brands – and above all, passionate people. Don’t get me wrong. This isn’t meant to be an anti-capitalist rant. On the very contrary, it’s about rediscovering and embracing the essence of a true market economy. The luxury fashion industry has morphed into an opaque oligopoly, where a handful of conglomerates dominate, and transparency has all but vanished. What we’re left with is a carousel of seemingly random designer hirings and firings that feel more like corporate theater than meaningful change. In just the last few months, we’ve seen Sabato De Sarno arrive (and announce his departure) at Gucci, Sarah Burton leave Alexander McQueen, Peter Hawkings leave at Tom Ford, and Ludovic de Saint Sernin exit Ann Demeulemeester after barely a season. These shifts, while splashy in headlines, do little to address the deeper issues plaguing the industry.

It’s a system that prioritizes spectacle over substance, with inflated prices and diminished quality – a race to the bottom dressed up as exclusivity. The real opportunity now lies in moving beyond this cycle. The collapse of this outdated structure isn’t a crisis; it’s a reset.

Instead of looking backward or clinging to what’s broken, we should embrace the possibility of what comes next. The end of this system clears the way for fresh perspectives, innovative brands, and meaningful connections. It’s a chance to rebuild an industry where creativity and craftsmanship are celebrated, where consumers find genuine value, and where the joy of discovery takes center stage again.

What stories will emerge? What new talent will rise? What brands will rewrite the rules? The future is wide open – and that’s what makes this moment so exciting.