Luxury Brands Face Declining Sales as Chinese Consumers Tighten Spending

Economic uncertainties and government crackdowns in China lead to significant drops in revenue for major luxury groups.

LVMH reported a 14% decline in sales in Asia, excluding Japan, for the second quarter of 2024.
Kering's Gucci brand saw a 19% drop in second-quarter sales, contributing to a 50% fall in net profits for the first half of the year.
Burberry and Swatch also experienced substantial revenue declines in the Chinese market.
Luxury brands are offering significant discounts and increasing online sales to attract Chinese consumers.
Chinese tourists are boosting luxury sales in Japan due to favorable currency exchange rates.