War in the Middle East: Fashion and luxury leather goods suffering according to a specialist

After weeks of war, the consequences of the conflict in the Middle East are being felt, especially in the luxury sector.

Published on: 20/04/2026 08:15 Last updated on: 20/04/2026 08:17 Reading time: 2min

The luxury clothing sector is one of the hardest-hit industries by the war in the Middle East, according to Olivier Abtan, associate director of the strategy consulting firm AlixPartners and luxury specialist. He points out that fashion and leather goods are suffering more than other categories, such as jewelry, due to the Middle East being a key market for luxury products, accounting for “almost 6% of the global market,” as noted by the specialist.

Abtan acknowledges that “the two main drivers of this market are China and the United States,” but emphasizes the importance of considering not only local consumption but also purchases made by luxury consumers during travel abroad. With fewer Middle Eastern travelers due to the ongoing conflict, luxury houses are losing a significant customer base. Additionally, the economic environment is not favorable to luxury with rising energy prices, potential inflation increases, and stable interest rates.

“The fashion and leather goods categories are suffering more than others,” notes Abtan, contrasting with jewelry. For example, the war in the Middle East and exchange rate effects have impacted the sales of French luxury group Hermes, causing fluctuations in the Paris stock market. In the first quarter of 2026, the revenue of the leather goods maker declined by 1.4% year-on-year to 4.1 billion euros. Despite this, Abtan does not anticipate “mass layoffs” in the approximately 600,000 direct or indirect jobs in the luxury industry, but rather a slowdown in expansion and job creation.

Furthermore, the specialist observes that since “post-Covid,” the luxury sector has been experiencing a slight crisis. “For almost three years, the market has been either stable or in a slight decline. It’s the first time since the industry’s inception that we have had such a long period of non-growth,” notes Olivier Abtan. He concludes that 2026 will most likely not be the year of recovery for the luxury market.