Luxury Under Scrutiny: Lessons from Loro Piana & LVMH’s Q2 Report
- Pooja Sharma Kautia
- Jul 28
- 2 min read
In a world that often equates luxury with exclusivity, perfection, and prestige, recent developments from two of the industry's most influential names - Loro Piana and LVMH - have reminded us that even luxury needs reflection, recalibration, and reform.
A Wake-Up Call from Loro Piana
According to an in-depth investigation by Business of Fashion (July 2025), Italian authorities placed multiple manufacturers under court administration for alleged labour exploitation - including suppliers to Loro Piana, the ultra-luxurious brand known for its cashmere and vicuña fabrics.
What made this revelation even more unsettling was the report that garments were allegedly sewn by undocumented workers, some of whom were paid as little as €2 - 3 per hour.
For a brand synonymous with craftsmanship, purity of material, and extreme discretion, this was more than just a legal issue - it was a reputational tremor.
Loro Piana has stated that it adheres to rigorous supply chain standards and has terminated ties with implicated subcontractors. But for many in the industry, this exposed a deeper issue: how luxury’s increasing production volumes, global demand, and fast-tracked exclusivity might come at the cost of ethical transparency.
LVMH’s Sales Slump: A Cautionary Tale
Meanwhile, in another headline that stirred industry circles, Business of Fashion reported a 9% drop in sales for LVMH’s fashion and leather goods division in Q2 of 2025.
Despite being the world’s largest luxury conglomerate, with brands like Louis Vuitton, Dior, Loewe, and Fendi in its portfolio, the group is not immune to global shifts - whether that’s softer demand from the Chinese market, inflation-struck American consumers, or evolving tastes that favour conscious consumption.
Interestingly, no public statement has yet been issued by Bernard Arnault, LVMH Chairman & CEO, addressing the dip. However, analysts are already predicting a potential reset across the luxury retail board.
Lessons for Luxury Retail Professionals
These stories are not isolated - they’re signals. Here’s what we can learn:
Transparency Isn’t Optional - Ethical sourcing and traceability are now as important as craftsmanship and exclusivity.
The Luxury Customer is Changing - Today’s consumers - especially Gen Z and millennials - are asking questions about “who made my clothes” and “what does this brand stand for.”
Heritage Must Meet Accountability - Even legacy brands need modern governance. Outsourcing doesn’t excuse due diligence.
Numbers Are Conversations - A drop in LVMH’s sales is not just about figures - it’s a reflection of cultural, economic, and environmental shifts.
At Luxury Learnings, We Say…
This is a time for retail professionals, store managers, and brand custodians to look inward.
Are your teams aware of what the brand stands for beyond the product?
Do they understand the importance of brand ethics in their customer storytelling?
Luxury isn't just about selling a product. It's about preserving the promise behind it.
- Pooja Sharma Kautia