Imran Amed, founder and editor-in-chief of The Business of Fashion, discusses the luxury fashion industry's severe crisis, comparing it to the Great Recession. He critiques unsustainable strategies like over-expansion and highlights the shift in consumer dynamics, especially in China and the growing potential in India. Amed emphasizes the untapped market of 'silver spenders' over 50 and the need for brands to embrace local talent. He advocates for innovation and culturally informed strategies to revitalize the luxury sector.
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insights INSIGHT
Luxury Crisis Factors
The luxury industry faces a crisis due to slowing Chinese spending and decreased aspirational buying.
Over-expansion and price hikes are no longer sustainable strategies.
insights INSIGHT
India's Potential
India's growing middle class, improved infrastructure, and internet access attract international brands.
Success in India requires culturally sensitive approaches and empowering local talent.
volunteer_activism ADVICE
Advice for Entering Indian Market
Brands entering India should prioritize finding and empowering local Indian talent.
This approach ensures culturally relevant decision-making within the market.
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In a special episode, BoF founder and editor-in-chief Imran Amed joins Bob Safian on The Rapid Response podcast.
“This is probably the most severe crisis that I've seen in the luxury side of the fashion industry since the Great Recession of 2008,” says Amed. “The business model and approach that the luxury industry has been using for the last decade or so is running out of steam.”
In their conversation, Amed and Safian discuss the cracks in the current luxury formula, the untapped potential in older demographics, and how brand and product innovation have the potential to revive the sector.
Key Insights:
Amed warns that the go-to strategies for luxury brands, such as over-expansion and relentless price hikes, are no longer sustainable. He highlights how the slowdown in Chinese consumer spending and a sharp drop in aspirational buyers who “gorged on luxury products during the pandemic” are exposing the cracks in this long-established playbook.
While the industry has long speculated on whether India might be ‘the next China,’ Amed believes real growth is finally within reach. Thanks to a flourishing middle class, improved retail infrastructure and widespread mobile internet, international brands are eyeing India’s vast consumer base with renewed interest. However, success demands culturally informed approaches: “The smart brands are going to really find the right talent, Indian local talent, and empower those leaders,” says Amed. “The Indian market is on the precipice of something really big but it’s not going to be easy.”
Amed acknowledges the widespread but often discreet adoption of artificial intelligence: “I think as with a lot of things AI, everybody’s using it, but not everyone’s talking about how they’re using it,” he said. However, he cautions that “to create something really, genuinely novel, interesting, disruptive, creative, and beautiful, a human has to be involved,” reminding brands that while AI can accelerate ideation, authentic creative vision remains the domain of designers themselves.
Amed believes the current turbulence will drive fashion leaders to rethink their strategies: “What’s exciting about a time like this is it forces companies to innovate because the market isn’t growing super fast anymore,” he said. He explains that to thrive under tougher conditions, businesses “have to take market share from someone else,” meaning it is no longer enough to repackage old ideas. Pointing to brands like Miu Miu and Brunello Cucinelli, which are still achieving significant growth, Amed sees promise in those who offer “something different and special,” rather than relying on the template approach that has dominated fashion in recent years.
The Business of Fashion Podcast