Up to 40 per cent of luxury goods were sold at a discount in 2025, hitting the sector’s profits as shoppers question the value of designer products after years of price rises.
Rising levels of discounting have pushed industry margins to a 15-year low, excluding the Covid-19 pandemic, in a slow market for designer products from shoes to handbags.
About 35 to 40 per cent of luxury goods were sold at knockdown prices last year, according to consultancy Bain and Altagamma, the Italian luxury goods industry association, a rise of at least five percentage points from a decade ago.
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