In a coordinated effort to address labor exploitation in the luxury fashion supply chain, Italian prosecutors, trade unions, and industry groups have signed a new, non-binding action plan. The memorandum of understanding aims to counter what Milan prosecutors describe as a “widespread and dangerous” manufacturing model fueled by cost-cutting and profit maximization.
The initiative follows investigations uncovering abusive conditions in subcontracted workshops producing for brands, such as Dior, Armani, and Valentino, where underpaid, often undocumented workers crafted high-end goods for a fraction of their retail value. Under the plan, a centralized database will monitor supplier compliance with labor and tax laws. Participating companies will receive renewable transparency certifications from the Lombardy regional government.
According to Milan court president Fabio Roia, the goal is to shift from reactive enforcement to proactive accountability throughout the supply chain. Brands are encouraged, but not required, to promote the platform to their suppliers – raising questions about the plan’s effectiveness and long-term impact.
> The key question worth pondering: Will the structure of the plan invite antitrust scrutiny? While voluntary, the creation of a centralized database and issuance of certifications could, in practice, establish de facto industry standards. If suppliers feel pressured to conform in order to retain contracts with major brands, the initiative could risk restricting market access, particularly problematic in a sector dominated by a few large players.
Under EU competition law, even socially motivated cooperation can raise red flags if it reduces supplier choice or impedes competition. However, the European Commission’s 2023 Horizontal Guidelines offer some leeway, especially where participation is clearly voluntary and does not tie purchasing decisions to compliance.
The key legal risk lies in whether certifications become informal prerequisites for doing business. If the system evolves into a gatekeeping mechanism, it could distort market dynamics. To avoid this, companies must strike a careful balance: supporting shared social goals without undermining competitive neutrality, particularly in a sector as interdependent and brand-driven as luxury fashion.
On Wednesday, the U.S. Court of International Trade struck down sweeping tariffs imposed by President Donald Trump, ruling that he overstepped his authority under a law that empowers the President to address threats to U.S. security. The trade court determined that Trump’s use of the International Emergency Economic Powers Act to justify broad, retaliatory tariffs violated legal limits, delivering a blow to his economic agenda. The court not only halted the tariffs but barred any future attempts to revise them under the same rationale. The decision triggered a surge in markets and set the stage for a likely showdown in higher courts, with the administration vowing to appeal.
“The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs,” the 3-judge panel stated. Meanwhile, drug trade-centric tariffs specific to Canada, Mexico, and China “fail because they do not deal with the threats set forth in those orders.”
White House spokesperson Kush Desai said in a statement, “Foreign countries’ nonreciprocal treatment of the United States has fueled America’s historic and persistent trade deficits. These deficits have created a national emergency that has decimated American communities, left our workers behind, and weakened our defense industrial base – facts that the court did not dispute. It is not for unelected judges to decide how to properly address a national emergency.”
A number of luxury and premium brands are showing “remarkable resilience” in 2025, defying concerns of a sector slowdown with strong brand value growth and rising global influence. According to the latest Brand Finance report, many of the world’s top luxury companies have not only expanded their financial value but also solidified their reputations and consumer loyalty. From Porsche’s continued dominance to Chanel’s meteoric rise, and Dior’s ascent as the strongest brand in the category, Brand Finance says that this year’s rankings highlight how strategic positioning, heritage, and innovation are driving sustained success across the luxury landscape.
Among the key takeaways …
– On the auto front: Porsche (# 1) remained the world’s most valuable luxury and premium brand with a “brand value” (as distinct from its financial valuation) of $41.1 billion, while Ferrari (#8) increased its brand value by 36% to $14.4 billion.
– Fashion & luxury: Chanel recorded the fastest brand value growth, rising 45% to $37.9 billion, surpassing Louis Vuitton to take second place globally; Louis Vuitton (#3) saw only 2% growth, bringing its brand value to $32.9 billion; Hermès maintained its 4th place position; and Gucci dropped to 9th, with a 24% decline in brand value to $11.4 billion.
– Hard luxury: Rolex (#5) saw a 36% increase in brand value to $18.8 billion, supported by strong sales and its Certified Pre-Owned program. Faces potential pressure from 10% U.S. tariffs on Swiss goods; Cartier’s (#7) brand value rose by 15% to $15.7 billion.
– Beauty & fragrance: Guerlain re-entered the top 10 after a 23% increase to $7.7 billion, fueled by strong performance of high-end fragrance lines and global demand; Lancôme entered the top 10 strongest brands, ranking 8th in Brand Strength.
Luxury is evolving – and so are its most affluent consumers. According to The New Lines of Luxury, a 2025 report by Frog (part of Capgemini Invent), today’s high-net-worth and ultra-high-net-worth individuals (HNWIs and UHNWIs) are no longer content with traditional symbols of prestige. Instead, they seek emotionally resonant, experience-driven luxury across sectors – from fashion and supercars to wellness, wealth management, and five-star hospitality.
Based on a global survey of 6,472 affluent individuals, the report reveals that half of respondents spend over $100,000 annually on luxury, with demand especially robust in emerging markets like India and China.
Yet even as spending rises, luxury brands face mounting challenges. Gen Z consumers are emerging as a powerful force, demanding personalization, sustainability, and innovation – while expressing lower satisfaction with traditional luxury experiences. At the same time, categories like wine and spirits, and even beauty, are struggling to deliver the emotional depth affluent consumers crave. The findings suggest a future where luxury must move beyond objects to deliver meaning, legacy, and deeply personal value – transforming exclusivity into unforgettable human experiences.
Key insights from the report …
– Travel & hospitality is the favorite luxury category among global HNWIs—yet the top driver of purchase decisions is, paradoxically: “I purchase products that increase in value over time and that I can pass down.”
– Rolex leads in brand awareness, with five hard luxury brands (Rolex, Cartier, Bulgari, Tiffany & Co., and Patek Philippe) among the 15 most loved brands – highlighting the emotional power of craftsmanship and timeless value.
– Heritage fashion houses dominate the luxury experience game: Gucci, Louis Vuitton, Chanel, Dior, Hermès, and Prada all rank in the top tier for delivering exceptional customer experiences.
– Automotive brands shine: Mercedes-Benz, BMW, Ferrari, and Rolls-Royce also appear in the top 15, proving the enduring allure of performance, engineering, and prestige on wheels.
– Beauty is a generational category: Consumers under 45 show significantly stronger interest in skincare, fragrance, and cosmetics – averaging a 10-point preference gap over older generations.
– In China, even wealthy Gen Z consumers are increasingly shifting toward local brands or purchasing “dupes.”
– In North America, more than 6% of Gen Z consumers already spend over $1 million per year on luxury – making it the most promising market to test new approaches tailored to next-gen luxury expectations.
The recent report from Plot, a management platform for social media teams, found that posts about luxury bag dupes, replicas and/or fakes on TikTok and Instagram increased by 10x between February and April 2025. Plot’s report found that Gen Z tends to have a more positive association with dupes than millennials, “who also seek out dupes but are more critical of dupe culture,” per Business Insider.
> For both millennials and Gen Z, Plot found Louis Vuitton and Hermès were the top two brands discussed most frequently in connection with dupes.
> For Gen Z consumers, in particular, Chanel, Coach, and Gucci were among the top brands discussed most frequently in connection with dupes.
> For millennial consumers, Gucci and Chanel were among the top brands discussed most frequently in connection with dupes.