China’s economic slowdown and a crackdown by Beijing on displays of wealth are taking a toll on some of the world’s top luxury brands.
LVMH says its sales in Asia, which include China but not Japan, fell by 14% in the three months to the end of June, worsening from a 6% decline in the first quarter.
The Paris-based firm is not alone, as many of its competitors are also seeing sales slow in the world’s second largest economy.
It comes as Chinese shoppers cut back on expensive purchases and government censors shut down social media accounts of influencers who have shown off their luxury goods online.
LVMH, which is the world’s largest luxury group, also said its overall revenue growth had slowed to 1% for the period.
Still, the group’s chairman and chief executive Bernard Arnault remained cautiously optimistic.
LVMH is not the only big name feeling a slowdown of luxury goods sales in China.
In its latest financial figures, upmarket British fashion label Burberry said its sales in mainland China had fallen by more than 20%, compared to a year earlier.
Swatch Group – the Swiss watchmaker which owns Blancpain, Longines and Omega – said weak demand in China helped push down its sales by 14.4% for the first six months of 2024, compared to the same time the previous year.
Source: BBC
