Economic chill dulls Chinese appetite for some luxury brands
Posted December 3, 2018 10:19 pm.
This article is more than 5 years old.
BEIJING — The designer boutiques of Manhattan and Paris are feeling the chill of a Chinese economic slowdown that has hammered automakers and other industries.
That is jolting brands such as Louis Vuitton and Burberry that increasingly rely on Chinese customers who spend $90 billion a year on jewelry, clothes and other high-end goods. The industry already is facing pressure to keep up as China’s big spenders, mainstays for American and European retailers, buy more at the spreading networks of luxury outlets in their own country.
Last week, Tiffany & Co. showed how much well-heeled Chinese tourists matter to retailers abroad. Its shares fell 12 per cent after its CEO said they were spending less.
Even before the economy cooled, luxury brands were under pressure from shifts in Chinese tastes and buying habits.
The Associated Press
