The K-shaped economy is no longer a theory. It is now dictating which companies grow, which stall and which are forced to rethink their position in the market. The idea is simple: spending is rising at the top, holding steady on the value end, and hollowing out in the middle. For fashion and luxury brands, that split is reshaping pricing, assortment and long-term strategy. On Burberry’s most recent earnings call on November 13, CEO Joshua Schulman described the environment as “very bifurcated and very specific, in terms of how a [luxury] brand is performing,” adding that the industry is “probably more polarized than the rest of the world.” That polarization has surfaced repeatedly across third-quarter earnings reported throughout November and December. LVMH and Kering emphasized their disciplined pricing and full-price sell-through, and Richemont pointed to sustained demand at its jewelry brands, which typically command a higher price point (and a wealthier customer). LuxExperience — parent company of Mytheresa, Net-a-Porter, Mr Porter and Yoox — said growth at Mytheresa was being driven by what CEO Michael Kliger called “big-spending wardrobe-building customers,” with average order values reaching record highs. Across groups, momentum is concentrated at the top end of the market.Continue reading this article on glossy.co. Sign up for Glossy newsletters to get the latest on the business of beauty, fashion and pop culture.
