Summer is here, but for most media executives in the northern hemisphere the memory of spring still lingers on due to the sheer weight of the spring editions of consumer fashion and lifestyle publications like Vogue, Harper’s Bazaar, GQ, and Vanity Fair in the U.S.; Elle, Madame Figaro, and Marie Claire in France; Grazia, Amica, and Gioia in Italy; and Telva and Mujer Hoy in Spain, among many others in Germany, the U.K., and Mexico.
Hundreds of pages in these issues were filled with ads from international fashion houses. There were so many ads that, in effect, they, on their own, constituted forms of editorial statements.
Fashion ads also spill into daily publications’ magazines and specials, in-flight magazines, and coffee table books distributed at four- and five-star hotels. Luxury brands are everywhere it seems — except television. Once in a while we see TV ads for perfumes, but that is the extent of TV promotion for luxury brands, as clothing, accessories, dress shoes, headwear, horology (the luxury watch market), and the so-called F-segment (luxury cars) don’t use television. Instead, the luxury industry uses print media extensively for their marketing and sales campaigns.
A number of years ago, a rep from Lamborghini was widely quoted as saying that his company did not spend money on TV advertising since their customers usually don’t have enough time to sit and watch TV. However, this statement conflicts with the notion that rich people don’t watch TV. After all, who else would watch such high-end TV fare as golf tournaments, the Triple Crown, or the Ascot Gold Cup?
It has been widely reported that print media is on its deathbed, yet luxury brands flock to it like swarms of bees toward bright flowers — seemingly without ad budget limits, notwithstanding the sector’s financial woes.
And they flock to print despite the fact that, already back in 2023, for example, consumers in the U.S. spent 76 percent less on magazines than in 2019, and there were 56 percent fewer subscriptions. Magazine circulation in the U.S. reportedly fell by 7.3 percent in 2024.
One explanation for the success of print magazines with the luxury industry is that in the lobbies, offices, showrooms, and warehouses of fashion labels, print publications are prominently displayed for buyers to marvel at.
Luxury houses now also trust social media influencers and fashionistas with their brands despite the fact that a good number of them can be considered “flamboyant,” but not elegant, since “elegance” traditionally means simplicity and subtlety — not flamboyance, dandyism, or in-your-face brands. Plus, as has happened in the past, influencers could be a source of embarrassment to brands. However, it has to be recognized that influencer-marketing spending in the U.S. is expected to reach $10.52 billion in 2025 (up from $9.15 billion in 2024), and ad agencies want to tap into this growing marketing service.
It is estimated that the global fashion sector is a $1.7 trillion industry. In comparison, the pharmaceutical sector is a $1.6 trillion global industry. However, while the former is under financial stress, the latter, which relies heavily on television advertising, is expected to reach $2.82 trillion by 2033.
Looking at the specifics, Gucci’s revenue fell 26 percent in the third quarter of 2024 compared with the same period a year earlier. And Burberry recently reported that a persisting luxury demand woes caused sales to fall by six percent.
Capri Holdings, the fashion conglomerate created by John Idol that includes Michael Kors and Jimmy Choo, recently wrote down the value of the businesses by $600 million. Now owned by Prada, Versace’s revenue sank 15 percent in the period that ended December 28, 2024. However, Prada reported higher revenue for the first quarter, reaching 1.34 billion euro (U.S. $1.51 billion), compared to 1.19 billion euro in the same period in 2024, thus escaping a spending downturn that is haunting the rest of the luxury sector. Curiously, The New York Times reported in May that Miuccia Prada has been using her Miu Miu line as a platform to commission short films, and that Miu Miu is the “rare fashion brand to experience explosive growth at a time when sales in general are slowing.”
In the U.S., luxury sales peaked in early 2022. A sales recovery expected this year was dowsed out by the tariff controversy. LVMH, the world’s largest luxury-goods group by revenue, reported U.S. sales down three percent from a year earlier in the first quarter.
So far, 2025 is shaping up to be a down year for the luxury industry, with global sales expected to dip two percent.
The Wall Street Journal recently reported that “high-end luxury brands may have taken their price increases too far.” LVMH funder Bernard Arnault was quoted in the WSJ as saying that a number of his brands have “increased their prices in a somewhat extravagant manner.” Indeed, an investigation last summer by a Milan, Italy prosecutor found that Dior (owned by LVMH) paid a supplier 53 euro (U.S. $60) to assemble a handbag that sold for 2,600 euro (U.S. $2,940).
To provide another perspective on this quandary, VideoAge called upon Bruce Orosz, CEO of ACT Productions, a Miami Beach, Florida-based company that produces unique events for clients such as Vanity Fair and Hublot. Orosz is also IP Chairman of the Greater Miami Convention Visitors Bureau.
“I’ve been thinking about this too,” said Orosz when asked about luxury brands shunning television advertising. He pointed out that “perfume is the exception. It’s the ‘entry-level’ luxury item and TV helps cast a wide emotional net.” He believes that the reason why the fashion industry, especially luxury brands, rarely use television for marketing and sales is because “TV feels too mass-market. Fashion, particularly at the luxury level, relies on exclusivity and mystique. TV’s broad reach doesn’t align with that. It can dilute a brand’s carefully crafted image.”
Orosz added that “creative control [with TV advertising] is limited. A 30-second spot can’t match the mood, detail, or visual storytelling a brand can achieve in print, digital, or experiential formats.”
Plus, he said that there are factors such as “high cost [and] low return. TV ads are expensive to produce and air, and fashion marketing isn’t about direct sales — it’s about building desire.”
On the other hand, Orosz acknowledged that “fashion brands invest heavily in print and out-of-home (billboards, in-flight magazines, coffee table books) because these platforms offer prestige and audience targeting. [And] many print buys come bundled with editorial coverage or digital extensions. Strategic placement (like New York City billboards or luxury travel media) reinforces brand presence in key cultural moments.”
Orosz concluded, “Yes, they do have big ad budgets, but they use them surgically. It’s not just about reach. It’s about context, environment, and brand alignment.”
What is not generally understood is why the luxury brands don’t boost their standing with the demand-side economic principle. By boosting the interest of particular items with limited supply, prices would increase. To avoid the often-repeated maxim that luxury brands don’t want to be associated with pedestrian consumer products, their marketing strategy should focus only on items that the average consumer cannot afford to buy, such as the least expensive Hermes’ Birkin bag (its cheapest version is sold for $12,100). This way, magazines would be used to stimulate sales, and television to increase prices.
In addition, luxury brands that are not in the category of “ultra-luxury” sell consumer products (like neckties, perfumes, gloves, umbrellas, and other accessories) that would benefit from TV advertising, as it would both generate sales and create demand for their high-end products, which due to their limited output, would increase prices.
But ultimately, the luxury brand sector seems set on its marketing strategy, and the TV industry doesn’t seem to be able to present a convincing alternative. What VideoAge was able to glean from the TV industry were comparisons between local and network advertising for luxury brands, but these did not address the reason why luxury brands should be using television. Plus, U.S. networks’ ad sales executives did not answer VideoAge‘s questions related to lack of luxury brands’ TV advertising.
It has been reported that luxury brands have a reputation for catering to the superrich, but more than 50 percent of global luxury sales come from millions of middle-class shoppers who spend less than U.S. $2,300 a year on luxury goods.
At this point, brands have to lure back middle-class consumers to jump-start growth. A report from Boston-based business consultant Bain & Company indicated that
the luxury industry has lost 50 million customers since 2022, partly, it said, because hefty price increases put their goods out of reach for aspirational customers. However, international online store Mytheresa can sell $8,400 Bottega Veneta handbags, while
luxury retail stores like Saks are struggling.
Clearly, the luxury sector has to create demand with TV advertising, while generating sales with a supply-side marketing campaign with print media.
(By Dom Serafini)
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