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Op-Ed | What’s Behind the Slump in China’s Luxury Sales?

The key question is whether the drop is due to a weakening economy or a shift in consumer perception towards luxury items as mere commodities.

Gucci store in China. — As China suffers from an economic Long Covid, it’s clear that brands with better resale value are much more resilient. (Shutterstock)

Bloomberg

12 August 2024

Multinationals have a puzzle that they need to tease out in China, the world’s biggest market for luxury products: What’s driving a slump in sales? Is it because a slowing economy is leading people to tighten their belts, or a sign that the Chinese no longer believe many brands can hold their value?

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