Three research firms recently surveyed by Bloomberg said that in July this year, sales at 25 major luxury brands in China fell by more than 10%. The decline was steeper than in June, marking a sharp reversal from the positive momentum seen earlier this year.
Data provided by the firms showed that Louis Vuitton and Dior, owned by French luxury conglomerate LVMH, as well as Gucci, Bottega Veneta and Balenciaga, owned by Kering, all recorded double-digit sales declines. Hermès swung from growth to decline, while growth at Chanel and Prada also slowed significantly.
According to data from China’s National Bureau of Statistics, growth in China’s total retail sales of consumer goods slowed to 0.6% in July. Big-ticket categories such as jewellery and automobiles were among the hardest hit, with retail sales falling by more than 10%.
Chart source: National Bureau of Statistics
A Chinese finance professional told Bloomberg that the stock market downturn had prompted her to stop making non-essential purchases, after previously spending at least US$15,000 a year on luxury goods. At Macau casinos, both the amounts wagered by high rollers and the frequency of their visits have also declined, with revenue falling by more than expected in June and July.
| Source: Bloomberg, National Bureau of Statistics
| Image Credit: Luxe.CO
| Editor: Luxeplace
