{"id":14371,"date":"2024-07-30T06:30:16","date_gmt":"2024-07-30T06:30:16","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=14371"},"modified":"2025-04-23T08:58:44","modified_gmt":"2025-04-23T08:58:44","slug":"has-china-lost-its-appetite-for-luxury-goods","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/has-china-lost-its-appetite-for-luxury-goods\/","title":{"rendered":"Has China lost its appetite for luxury goods?"},"content":{"rendered":"

As Burberry, LVMH, Kering and others report flagging sales, what does China\u2019s luxury slowdown mean for British brands?<\/h2>\n

For several years now, China has been seen as the main driver of growth for the luxury goods industry. But recent sales figures from both luxury groups and independent brands indicate that Chinese shoppers are reining in their spending amid economic uncertainty.<\/p>\n

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Two of the world\u2019s largest luxury groups, Kering and LVMH, reported falling revenue in the first half of 2024, with LVMH\u2019s sales in the Asian market falling by 14% in Q2 2024. Earlier in July 2024, Burberry ousted CEO Jonathan Akeroyd after its financial figures reported sales in China falling 20%. Richemont, Hugo Boss and Swatch Group also all reported falling sales.<\/p>\n

These troubles in the luxury market come as the latest economic data showed China\u2019s economy growing 4.7% in Q2 2024, down from 5.3% in Q1 2024<\/a> to the lowest since Q1 2023. This faltering has been partly attributed to the country\u2019s prolonged property crisis, which has certainly spooked the kind of aspirational buyers that have traditionally driven luxury sales in China.<\/p>\n

Nevertheless, things aren\u2019t all doom and gloom. Herm\u00e8s bucked the trend, reporting a 7% uptick in sales revenue for Asia (excluding Japan), and while it saw a decline in foot traffic in its stores in China, sales there held relatively steady compared with last year.<\/p>\n