China Luxury Spending Pullback Hits High End Brands

Luxury companies were already having a tough earnings season on a subdued China backdrop. A miss by the bellwether owner of Louis Vuitton and Dom Perignon just made it worse. Slowing demand in the Asian country has been a key setback for the industry. Out UK retail reporter Jennifer Creery joins Bloomberg Radio's Caroline Hepker and Jack Sidders to discuss.

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[DumpTheDollar]

Good. Stop wasting money on overpriced ripoff.

[kurjan]

Louis Vuitton needs to return to its roots of luxury travel and do away with all the garbage. People have had enough of the over branding rubbish.

[madridring]

Gone are the days of overpriced luxury brands. The more the brands try to rip off the consumer, less people are willing to keep up with the price hikes. The brands wanted to take back the image of exclusivity, and they are now getting what they wished for.

[阿部机]

Isn't it because overcapacity? You guys produce too much "Luxury" products.

[ahbai]

Wahahaha….. karma has come to haunt LVMH for hiking prices like no tomorrow. In a recession, the 1st item to go is unnecessary luxury items

[swedgephd]

Because they found out it was made by Chinese in Italian factories

[Emphasis]

Back in the early 90s and 2000s major brands used to have their logos ridiculously enlarged and emblazoned on every clothes they sell. People would flock to them and wear those clothes with pride even if it had other people's name on it.

Today most people finally woke up to the absurdity of name brand clothes. Now most want fast fashion or just quality clothes that last for a good price.

[HaveyoumetKen]

The “luxury products” are only luxury in name. A lot of them using cheaper materials and cheaper labor resulting in inferior products with the name being what you’re paying for.

[mrme-m]

Luxury brand are trying to sell Chinese made product at premium price to Chinese..😊😊😊😊😊

[chevyjazz]

Wearing luxury brands shouldn't be gauche and that is what these houses have turned into. Quality should trump quantity and quality has gone downhill over the past two decades. My mom has a collection of vintage Chanel and LV bags, all have stood the test of times. LV is basically making bags out of plastic and they look and feel terrible.

[david-bdtd]

Thanks to US hostility that encouraged majority Chinese turned to local brands due to patriotic sentiments ...

[zevil]

This is cyclical. The Japanese used to spend crazy back in the 80s. Their economy tanked, and it stopped. Its a trend every nouveau riche country goes through.

[ponuni]

Japan is literally becoming the next Thailand loool.

[cac]

Chinese people now realise they should buy local brands, not foreign brands. Save money.

[mptw]

Price hike after price hike wayyy outpacing inflation while quality worsens. Is anyone surprised?

[Janovial]

The reason why the LMVH guy got to be the richest man in the world is due to Chinese consumption of its product.

[bl]

They asked for this. Keep raising prices to ridiculously obscene levels thinking there are enough suckers around to buy them.

[marktrinidad]

China should just let go of the luxury industry. First it doesn't create that many jobs, profits goes to the European executives while workers get measly salaries. Second, most luxury brands come from Europe, in a continent that definitely discriminates against non European companies. French wants to ban entire Chinese EV lineup from Europe, how about China does the same with French luxury brands.

[yst]

may be its because the western is declining, so it's luxury brands don't mean that much to Chinese people. Also they found a lot of them are actually made in China or at least the materials are from China

[Trueye-slmr]

The luxury goods are made in China anyway and local brands are better value for money