The Business of Fashion Podcast
Episode: 5 Big Questions About Luxury
Date: December 3, 2025
Hosts: Sheena Butler-Young (Senior Correspondent), Brian Baskin (Executive Editor)
Guest: Robert Williams (Luxury Correspondent at Large)
Overview
This episode presents a fast-paced and insightful discussion on the state of the global luxury industry, responding to five of the most pressing questions facing the sector today. The team analyzes Chanel’s latest Metiers d’Art show, Prada’s acquisition of Versace, the proliferation of luxury-branded restaurants, the newfound cachet of worn-out luxury handbags, and future growth projections for the luxury sector. Throughout, the conversation blends business analysis with insider fashion commentary and a touch of humor.
Key Discussion Points & Insights
1. Chanel’s Metiers d’Art Show: Why It Matters This Year
[02:07 – 04:43]
- Renewed Attention: Chanel’s annual Metiers d’Art show is drawing more attention this year, following the debut of new creative director Mathieu Blasi (formerly Bottega Veneta).
- Significance: The show highlights Chanel’s craftsmanship, showcasing its network of artisan “maisons” (like Le Sage and Lemarié) acquired over years.
- Design Direction: Blasi brings a focus on materiality and craft, with his first collection in October and now this significant second show.
Robert Williams [03:39]:
“With Mathieu, who really showed during his time at Bottega Veneta how much he cared about materiality ... he’s getting to come out with his second show and it’s the Metiers d’Art. It’s a really big moment because he’s going to get to advance that story about what Chanel is really capable of.”
- Celebrity Partnership: The buzz also stems from Chanel’s campaign featuring A$AP Rocky and Margaret Qualley, directed by Michel Gondry, underlining a strategic approach to celebrity involvement and cross-media marketing.
Robert Williams [04:53]:
“It’s a really big PR coup for them to have signed A$AP as an ambassador ... he really helped drive the narrative at Bottega Veneta ... and it was really strategic to bring him over to Chanel also.”
2. Prada’s Acquisition of Versace: Strategic Choices Ahead
[08:05 – 13:30]
- Acquisition Strategy: Prada is finalizing its acquisition of Versace, facing decisions on whether to continue the new direction set by designer Dario Vitale or pivot again.
- Recent Changes at Versace: The brand has shifted from glossy, image-driven shows to collections with more substance, real-world reference, and product gravitas.
Robert Williams [08:18]:
“The brand has taken on a new sort of materiality and gravitas ... a pretty radical shift over the past couple months.”
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Key Challenges:
- Positioning: Versace must clarify whether to pursue fashion-forward luxury or make the image more accessible.
- Pricing: New luxury positioning comes with “really, really high” prices; balancing that with younger, fashion-forward customers is critical.
- Brand Identity: The tension between staying edgy/sexy and appealing to broader audiences is unresolved.
-
Personal Opinion:
Robert Williams [12:18]:
“I would like them to continue on the route they’re doing because I really like what Daario’s bringing ... let him cook over there and then just see how can you trickle this into the wider business in a savvy way.”
3. Luxury Restaurant Chains: Boom or Brand Dilution?
[15:51 – 22:47]
- Trendy Expansions: High-end restaurants like Langosteria, Carbone, and San Embras are expanding rapidly, opening in major luxury retail spaces (ex: Palazzo Fendi in Milan, St. Moritz, Paris).
- Chain Paradox: There’s debate over whether these restaurants can remain “cool” once they become chains, paralleling perceptions in fashion.
Brian Baskin [18:39]:
“Do they become the Hard Rock Cafe for fashion?”
- Local vs. Global: The team discusses the challenge of maintaining local allure amid global expansion; Paris is highlighted as a “test case” for breaking into conservative, experience-driven dining cultures.
- Location Tactics: Restaurants try to attract both tourists and form a local regular base, e.g., hiring French pastry chefs to localize menus.
Robert Williams [20:14]:
“Clearly the restaurant business is dominated by hyper-local restaurants. Most nice restaurants are local institutions. But ... there's a bigger slice of the market than one would have thought of people that are moving around the world a lot, having events ... to bring together people around a trusted brand is maybe ... more appealing than you would think.”
4. The “Beat Up” Handbag Trend: Patina, Status, & Scarcity
[22:47 – 26:22]
- Embracing Wear: There’s rising enthusiasm, especially among younger and aspirational shoppers, for well-used luxury handbags and watches—particularly with Hermès Birkins but increasingly across brands.
- Status Symbol Shift: Carrying a visibly worn luxury item signals authenticity and personal style over consumer naivety.
Robert Williams [23:14]:
“No matter how much you wear out that bag ... it’s still not going to break and fall apart. I think it just makes it a really cool style gesture. It shows you’re not someone who just bought into it yesterday ... it just shows, 'I wear luxury stuff, but I'm still cool.'”
- Designer Response: Brands have begun offering “pre-distressed” luxury items (Gucci’s Jackie bag, Chanel’s deliberately worn bags), but consumer attitudes are divided:
- Some love the ready-made look,
- Others want to earn that wear themselves.
Brian Baskin [25:18]:
“People have a love-hate relationship with when a designer presents them the distressed item for purchase versus when I get to distress it myself ... It’s a whole look, it’s a vibe.”
5. The Future of Luxury: Is Growth Truly Returning?
[26:22 – 33:08]
- Market Predictions: Recent forecasts from UBS, Deutsche Bank, and Bain anticipate a return to growth (mid-single digits) after a tough year, hinging on a “rebound” in the Chinese consumer and new creative revivals.
- Cautious Optimism: Robert expresses skepticism, citing ongoing volatility in the Chinese market and lingering uncertainty around global travel and tourism.
- Pricing Problem: The industry faces a “value problem”—luxury prices have soared, and brands are reluctant to introduce affordable ranges. Few are adjusting except for some recalibrations (e.g., Burberry, Chloé’s Paddington relaunch).
- US Market Variables: The US’s large share of global luxury sales (about 25%) means that weakening dollar/euro ratios present significant pricing challenges. Brands must weigh either eating margin losses or raising prices domestically.
Robert Williams [30:15]:
“People are seeing more value in the products through the creativity is kind of the big argument people are making. But then the price itself is a big challenge. I think brands don’t want to bring down prices ... they’re thinking more in terms of stabilizing the pricing and letting people grow into it.”
Notable Quotes & Memorable Moments
-
On Chanel’s Metiers d’Art:
“Chanel is Chanel. So, you know, Chanel being Chanel, it is a brand that people just really tend to care about and get excited about.”
— Robert Williams [02:07] -
On A$AP Rocky’s New Role:
“ASAP is just seen as so stylish... And he really helped drive the narrative at Bottega Veneta... I think it was really strategic to bring him over to Chanel also.”
— Robert Williams [04:53] -
On Restaurant Chains Losing Their Cool:
“I think it’s just like some. For some reason, fashion, once upon a time was all made by your local tailor ... and once it became global, that was more desirable. But in food, it seems like it’s kind of the opposite.”
— Robert Williams [18:56] -
On Distressed Luxury Items:
“It has to go with your vibe. So I don’t know if it’s going to be, you know, a trend that's going to drive the industry in one direction or other. But I think it's a...I really liked Joan's story about this...”
— Robert Williams [25:43] -
On Future Growth Projections:
“There’s a sense that ... maybe just too many brands changed in the same space of time for the market to easily digest. In some cases it’s creating winners and losers.”
— Robert Williams [30:15]
Key Timestamps
- 02:07 — Why Chanel’s Metiers d’Art show matters this year, and the debut of Mathieu Blasi
- 04:53 — A$AP Rocky's campaign and its strategic impact for Chanel
- 08:05 — Prada’s acquisition of Versace: initial challenges and directions
- 12:18 — Robert’s take: Let new Versace direction “cook,” then commercialize thoughtfully
- 15:51 — The rise of luxury restaurant chains and their cultural status
- 18:39 — Are these restaurants the “Hard Rock Cafe for fashion”?
- 22:47 — Why beat-up handbags are suddenly desirable, and how brands are reacting
- 26:22 — Will luxury return to growth? Growing importance of China and US, and the sector’s “value problem”
- 30:15 — The persistent challenge of luxury pricing
- 33:08 — Closing thoughts, what might shift the market for aspirational shoppers
Overall Tone & Takeaways
The discussion is lively, candid, and occasionally irreverent. The hosts and guest balance critical business insight with genuine curiosity about trends, poking fun at industry foibles as they go. The episode offers vital context for those interested in fashion business trends, creative direction, and the ever-shifting tastes of global luxury consumers.
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