Luxury brands are going through unprecedented times, particularly with shifting dynamics in China, a core market for European luxury houses. This evolution in the market highlights the need for strategic adaptation to capture new growth opportunities.

Jonathan Siboni, CEO of Luxurynsight, underscores this transition: “Luxury goods in China are being deprioritized, especially for middle-income earners.” He added that according to Luxurynsight database, a quarter of Chinese consumers find western luxury brands less appealing than 12 months ago.

In response, key luxury players like LVMH and Kering have seen significant impacts, with Kering reporting a 9% decrease in sales in China. Analysts point to Chinese consumers’ reduced interest in high-end brands, shifting spending priorities, and the economic headwinds as drivers of this trend.

Read the full article on Bloomberg.

Special thanks to Bloomberg for the feature!​