The luxury goods industry has relied heavily on China and North America for growth in recent years, but latest Chinese economic figures and a disappointing sales update from Cartier-owner Richemont suggest both markets may be starting to slow.
Major luxury brands have invested millions to reach new customers in the two markets, venturing beyond traditional high-end shopping centers to open new stores in places like Wuhan and Zhengzhou, or Charlotte and Nashville.
A post-pandemic U.S. splurge had already shown signs of flagging, leaving investors to pin their hopes on Chinese shoppers to sustain the monthslong spending spree that has boosted the sector's fortunes.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.