Against a backdrop of great change, Rachid Mohamed Rachid offers an insightful look at the state of the luxury goods market in 2024. The Chairman of Valentino and Balmain, and head of the Mayhoola investment fund, discusses the slowdown and the increasing harshness of the market, revealing strategic partnerships and the evolution of iconic brands.
Present in Paris for the fashion shows, Rachid Mohamed Rachid spoke about the luxury goods market in an interview with AFP on Wednesday January 24. The boss of the Qatari investment fund Mayhoola and Chairman of Valentino and Balmain says it has become “a game for the big boys”, marked by the toughness of the sector and macroeconomic and geopolitical uncertainties.
“Even with the slowdown we’re experiencing, we’re talking about possible luxury market growth this year around 4%, maybe 5%. Of course, it won’t be the same for all brands,” says Rachid Mohamed Rachid.
He sees positive, but very slow, signs in America, and a decline in footfall in Europe. However, Rachid Mohamed Rachid points out that Asia is in good health, buoyed by the Japanese market, as well as Indonesia, Singapore and Thailand. The Korean market, on the other hand, is “relatively poor due to serious economic problems”.
The President of Valentino and Balmain expresses his expectation of the Chinese New Year celebrations to assess the recovery in the Middle Kingdom, currently describing a very slow recovery.
“Overall, 2024 will be a relatively slow year for luxury. But our feeling is that there is enough resilience to take us into a new era,” he declares.
Valentino under the Kering umbrella
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Featured photo : © Valentino
