Promotional Activities and Market Outlook

Promotional activities in the luxury e-commerce segment are primarily driven by the presence of excess inventory in the market. However, as new merchandise cycles begin and older stock is cleared, there is an expectation of reduced promotional intensity and a more disciplined approach to markdowns. While the luxury sector is currently experiencing inflationary pressures, the impact on luxury spending varies depending on the target market. The Chinese consumer, for example, has shown a slower rebound in spending compared to Western Europe. However, there is optimism for recovery in the luxury market as stock levels stabilize and promotional activities become more controlled.