Supply chain instability has become a key challenge for luxury brands, with fluctuating tariffs, increasing fuel costs, and changing consumer expectations altering operations. At the Vogue Business Global Summit in Chantilly, executives from GXO and Vogue Business discussed these issues during a private lunch at Maison de Sylvie, a secluded restaurant in the Château de Chantilly forest. Attendees included leaders from Longchamp, Sandro, and Sephora, who shared ideas on managing an unpredictable environment.
Tariff talks were central to early discussions. Representatives from Brazil highlighted the difficulty of importing luxury goods, noting inadequate local infrastructure to counter rising costs. European-based brands cited fuel price increases tied to the Middle East conflict, which have strained logistics budgets. Smaller fashion labels face a different challenge: scaling operations without major investment in returns management, a costly issue as shoppers request free delivery and returns.
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Max Alexander, SVP of Global Sector Development at GXO, highlighted outsourcing as a way to tackle staffing costs, a major expense for brands. “We manage the operational complexity that often limits growth,” he said. “This allows brands to focus on creativity and customer engagement. Our expertise, technology, and scalable systems help us predict demand patterns and position inventory more effectively than many brands can alone.”
Anusha Couttigane of Vogue Business pointed to the rising need for white-glove services for luxury clients. “Consumers now expect faster delivery,” she said. “They might wait a few days, but not weeks. Customization, like engraved cosmetics cases or custom ribbons on fragrance bottles, must be handled efficiently to meet expectations.” GXO’s work with a beauty brand showed how integrating these services into delivery warehouses reduced labor burdens for both brands and retailers while maintaining quality standards.
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Automation and digital tools have raised expectations, but Couttigane warned that the pressure to deliver high service often falls on overworked staff. “Brands and stockists are stretched thin,” she said. “Efficiencies in the supply chain—like automating personalization steps—can ease this strain without hurting customer experience.”
Alexander added that warehousing can also reduce profit risks and improve sustainability. “Many brands overlook the value of restoring products within the supply chain,” he said. “Cleaning or repairing garments at scale can return items to retail-ready condition, recovering more value than discounts or write-offs. This method also cuts waste, keeping unsold goods out of landfills.”
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For luxury brands, the balance between speed, customization, and sustainability is shrinking. As fuel costs rise and geopolitical tensions continue, solutions like outsourcing and advanced logistics will likely stay vital. However, the challenge is adapting these strategies without losing the exclusivity and craftsmanship that define the sector. The conversation at Chantilly showed one fact: in a changing world, adaptability is now essential.
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