As LVMH CEO Bernard Arnault famously said:  “Luxury goods are the only area in which it is possible to make luxury margins.”

And for a long time that was true.

Today those margins are eroding.

For decades luxury brands were riding high – apart from chaotic retail pressures that brands outside of that category faced on a regular basis.

Now they’re learning what it’s like on the other side of the retail industry – where things are a bit less glamorous, and definitely more competitive.