The gleaming flagship stores of Louis Vuitton, Chanel and Gucci in the Ginza district of central Tokyo are no one’s idea of discount outlets. They were designed by top architects and offer sumptuous displays of luxury goods in Japan’s most expensive patch of ground. But they have been filled with bargain hunters in recent months — Chinese tourists who have flown to Japan’s capital to buy items more cheaply than at home.
Burberry said this month that it was replacing its chief executive after its attempt to achieve the same cachet and pricing power of a Chanel or Louis Vuitton stuttered. Its value is in turn a fraction of Kering’s at £2.6bn, and that ambition now looks beyond reach. Meanwhile, brands that appeal to the richest shoppers, and can charge the highest prices, are doing fine.