#luxury

Major luxury groups are investing heavily in Milan and Paris fashion shows even as the sector deals with weaker demand, inflation and geopolitical uncertainty.

Reuters reported that major runway productions can cost as much as €10 million.

Why it matters

The economics are counterintuitive: when demand weakens, luxury brands often need to spend more—not less—to reinforce exclusivity, cultural relevance and pricing power.

The strategy depends on turning one physical event into months of imagery, press coverage and social content.

De Beers used London Fashion Week to launch its Vibrations high-jewelry collection, including an unusual cabochon diamond cut and stones sourced through programs connected to artisanal mining communities.

Why it matters

Lab-grown diamonds can closely reproduce the physical material of a mined diamond, so natural-diamond brands increasingly compete on everything around the stone: rarity, origin, craftsmanship and story.

That makes high jewelry a useful example of how luxury tries to protect value when technology makes the underlying object easier to reproduce.