Luxurynsight’s Post

The world's top luxury brands are feeling the impact of China's economic slowdown and crackdown on displays of wealth. LVMH, the largest luxury goods group, reported a 14% drop in sales in Asia, including China. Other brands like Burberry, Swatch, and Richemont also faced significant sales declines. The economic downturn and government actions against flaunting luxury online have contributed to the decrease in consumer spending on high-end goods. This trend is challenging for the luxury sector, which relies heavily on Chinese shoppers. #ThesocialTalks #LuxuryGoods #ChinaEconomy #RetailSales #LVMH #Burberry #Swatch #Richemont #EconomicSlowdown #BusinessNews

“Up to 2020, a significant amount of the consumption of luxury goods took place outside mainland China as Chinese consumers sought a wider product offering and the benefits of tax-free shopping. However, Covid disrupted the model and flow of business and the industry has been awaiting a post-Covid revival.” Tim Jackson, Head of Academic Operations at the British School of Fashion, shares key insights into the luxury market in Asia, as highlighted at the 20th Annual FT Business of Luxury Summit. Read the full feature here: bit.ly/4ct0VSI #LuxuryBriefing #LuxuryMarket #Asia #FTLuxurySummit #BritishSchoolOfFashion #IndustryInsights

Chinese Consumers: From Prada to Pingti (平替) China's economic slowdown may be rattling the luxury sector while shrinking LV wallets, but as always, opportunity remains for those who pivot. While young professionals are trading their Prada bags for affordable dupes, the rise of “pingti” shows that value-conscious consumers are on the rise. As a business, how can you tap into this shift? Full story on CNN https://bit.ly/47W7E6f So, although consumer confidence has fallen and the property sector is uncertain, China still has 1.4 billion people who still need goods and services. With luxury losing some luster, there is a growing demand for clever and affordable alternatives. When one door closes, another opens 塞翁失马, 焉知非福 — ensure that what you’re offering fits through that new door and all will be good. To your good selling in China, Chris #luxurychina #consumertrends #chineseeconomy #adapttowin

The post-pandemic luxury market was unstoppable. Record profits driven by China’s reopening and the revenge-on-lockdown ‘urge to splurge’ sent profits at all the major luxury brands to unbelievable highs. Briefly, it looked as though the upswing was going to stick, with pundits – and papers – asking if it would ever end. Now, results season has put a string of high-profile downturns in the news: profits at Burberry, Gucci and LVMH have all struggled to reach anything like their 2022 and 2023 highs. Continue reading 👇 https://lnkd.in/e4tnGpSF

𝗦𝗼𝗺𝗲 𝗟𝘂𝘅𝘂𝗿𝘆 𝗚𝗼𝗼𝗱𝘀 𝗛𝗮𝗱 𝗮 𝗕𝗲𝘁𝘁𝗲𝗿 𝗖𝗵𝗿𝗶𝘀𝘁𝗺𝗮𝘀 𝗧𝗵𝗮𝗻 𝗢𝘁𝗵𝗲𝗿𝘀 "The difference between Richemont and Watches of Switzerland may be partly down to what they sell and where. The U.S. was a bright spot for both companies in the crucial holiday shopping season. American shoppers who spent overseas in cities like Paris and Milan last year are buying luxury goods at home instead. But Watches of Switzerland’s domestic U.K. market, which still generates around half of its sales, is in a slump. Richemont’s European business was also weak in the quarter." https://lnkd.in/eNtTsKvX

❓ Did you know that 40% of Chinese luxury purchases were made overseas in H1 2024? ✈️💼 Despite economic challenges, China’s luxury spending is projected to hit 572 billion RMB this year, with high-end consumers driving the market forward. Here are some key numbers from BCG & TMI: 💰 High-end spenders (10% of the market) now account for 45% of total sales 📈 Fastest-growing categories: Leather goods (+7%) and Jewelry (+6%) 📲 86% of consumers research online before buying Swipe through our carousel for more insights! 🔍✨ 👉 Follow us to stay ahead of the trends and get the latest luxury market updates. #LuxuryMarket #ChinaTrends #LuxurySpending #BCG #TMI #DigitalMarketing #LuxuryGrowth

"The luxury industry has been so eager to woo ultrawealthy shoppers that it forgot who really pays the bills: the middle classes." "If luxury brands continue to sideline middle-class shoppers, more reasonably priced labels will step in. This is already happening in China. Western labels. “Brands cannot afford to alienate these customers,” Luxury Brands Need to Win Back Middle-Class Shoppers https://lnkd.in/eqkzQUa6 #Luxury #brandstrategy #fashion #pricestrategy #consumerbehaviour #ecommerce #marketplace

EXCERPTS: Wealthy Chinese, the mainstay of luxury fashion, have been on a shopping spree in Japan to take advantage of the favorable currency exchange and lifted sales there by 57%, while creating a slump at home. For European fashion, strong sales in Japan are not a blessing. Yen-denominated revenue erodes their top line as well as profitability because their cost base is in European currencies. But the weaker yen isn’t the root cause of global luxury’s woes. There’s a much more worrying Japanification factor: Consumers in China are starting to behave like Japanese did in the 1990s. It’s pretty common to hear executives in the luxury industry complain about how China’s economic slowdown. Rather, the Chinese have been buying European luxury for two decades. The bar to entice them to spend has risen. Just like a previous generation in Japan, consumers in China have found their own sense and sensibility. COMMENT: "Japanification" in China's urban centers has been obvious for some time, right down to home remodeling that is increasingly skewed towards high-end products (e.g. refrigerators, stoves, ovens, sinks, and toilets) that you buy once (or one more time) as they are well made, long lasting, versus the usual tear down remodeling that you see everyday due to poorly made products with poor materials.

Key Lessons from China Gucci Slowdown The recent slowdown in luxury sales, particularly in China, has sent shockwaves across the industry, with brands like Gucci feeling the impact firsthand. Let's delve into the key lessons we can learn from Gucci's experience and how they can guide us in navigating the ever-changing landscape of the luxury market. ▶ Changing Consumer Tastes: Chinese luxury shoppers are becoming more discerning, seeking out brands that resonate with their evolving preferences and values. ▶ Economic Factors at Play: Rising unemployment and economic uncertainty in China are impacting consumer confidence and purchasing behavior, leading to a slowdown in luxury spending. ▶ Brand Adaptation is Key: Luxury brands must remain agile and responsive to shifting market dynamics, including adjusting product offerings and marketing strategies to meet evolving consumer demands. ▶ Diversification Strategies: Over reliance on the Chinese market can pose risks for luxury brands, highlighting the importance of diversifying into other regions to mitigate vulnerabilities to market fluctuations. ▶ Long-Term Growth Outlook: Despite short-term challenges, the long-term growth prospects in China remain promising, especially as the middle class continues to expand, emphasising the need for brands to maintain a strategic focus on the region while exploring opportunities in other emerging markets. ▶ Resilience and Innovation: Brands that can innovate, adapt, and differentiate themselves in response to market challenges will be better positioned to weather economic downturns and emerge stronger in the long run. https://lnkd.in/eaT5Bsed How are you staying connected to your customers and delivering exceptional experiences? DM me or email me at elizabeth@luxurybusinessemporium.com to start a conversation and explore the path forward together #luxpreneur #luxuryinsights #luxurynews #linkedinnews #china #luxurymarkets

Last week, I came across Lisa N.’s article about “China’s Luxury Pivot to Value, Experiences,” . The article touched on how high-spending consumers are boosting growth while lighter spenders are cutting back—something that also came up in a Boston Consulting Group (BCG) report. It inspired me to put together a carousel highlighting some of the key data and trends in China’s luxury market. Check it out and let me know what you think! 💡 Swipe through for some interesting insights. 🔍✨ 👉 Follow us Kivisense | AI, XR, AR, 3D MarTech for more on China luxury market trends and digital marketing tips! #LuxuryMarket #ChinaTrends #LuxurySpending #BCG #TMI #DigitalMarketing #LuxuryGrowth