What Chanel's Subway Show Means for Luxury

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Transcript

00:00Chanel's fashion show in an abandoned New York City subway station is causing a frenzy.

00:06But I think the location is far less interesting than the country in which it was held. Right

00:12now America is the hottest luxury market in the world.

00:16Gucci and Dior will hold shows in New York and Los Angeles next year.

00:21The business of selling fancy stuff has suffered an unprecedented boom and bust over the last

00:27five years. Shoppers in both the US and China pulled in their purse strings.

00:32But since April, when Americans took fright at the prospect of tariffs, US big spenders

00:39have been backed. Stock markets have been on a tear, until recently anyway. And in the

00:44US, luxury sales are usually correlated with asset prices.

00:49All of this makes the US the perfect place to recover from the lackluster performance.

00:55And the top brands are taking note. There are hopes that Chinese shoppers are recovering

01:00their appetite for luxury too, helped by Louis Vuitton's store that looks like a ship.

01:05But until that happens, the luxury industry is going to have to rely on US customers.

01:12The US isn't a sure thing though. Stock markets have wobbled recently and Bitcoin is down almost

01:18a quarter in the last two months. Crypto bros might think twice about splurging

01:24on a Rolex or gifting a Hermes bag. Even the double Cs won't be immune. The publicity created

01:31by Chanel's subway stunt will be very useful, regardless of where US spenders are heading.

01:37End of the heading.