Market Trends & Consumer Behavior - Spending on foreign premium brands in mainland China has started stalling, with the rise of local premium brands [1] - Chinese consumers are becoming more cautious and selective, seeking personal connection, wellness, and cultural relevance in their purchases [4] - Western luxury brands are adapting by stressing storytelling and experiential shopping, such as building multi-story megastores with retail, exhibition, food, and drinks [10] Competitive Landscape - Chinese premium brands offer experiential and cultural elements in their brand storytelling, attracting Chinese consumers [5] - These brands are positioned as cheaper alternatives to Western luxury brands while still providing good quality products [6] - LVMH's chairman was observed shopping for Chinese brands, indicating a shift in the market [9] Challenges & Uncertainties - The rapid growth of Chinese premium brands started from a relatively low base, making future growth uncertain [6][7] - China's weak economy, lacking expanding population and middle-class income, poses challenges for homegrown luxury brands [8]

Core Insights - The luxury market in China is experiencing a shift as spending on foreign premium brands is stalling, while local premium brands are gaining traction [1][4] - Chinese consumers are becoming more selective in their luxury purchases, seeking personal connections and cultural relevance in the brands they choose [4][5] Group 1: Rise of Chinese Premium Brands - The rapid growth of Chinese homegrown premium brands is occurring alongside China's economic slowdown, characterized by slumping property prices and high youth unemployment [4][8] - Chinese premium brands are effectively providing experiential and cultural elements in their brand storytelling, attracting consumers who view them as quality alternatives to Western luxury brands [5][6] - The initial low base of these Chinese brands has facilitated their growth, but sustaining this growth presents uncertainties [6][7] Group 2: Challenges for Luxury Brands - The weak state of China's economy poses challenges for luxury brands, as growth requires an expanding middle class and rising incomes, which are currently lacking [8] - Western luxury brands are adapting by emphasizing storytelling and experiential shopping to align with changing consumer behaviors in China [10][11] - The transformation of retail spaces into multi-story megastores with diverse offerings aims to create a deeper personal connection with consumers [10][11]

Market Trends & Strategies - Louis Vuitton launched "Louie" in Shanghai to navigate China's shifting luxury market [1][2] - Major brands believe China has stabilized but remain cautious about the outlook, retreating to prime locations in major cities [3] Sales Performance - Louis Vuitton reported a 7% increase in China sales in the third quarter [2] Consumer Behavior - "Louie" has attracted hundreds of thousands of visitors since its opening in June, raising questions about their spending willingness [4]

Luxury Brands - Bernard Arnault visited Shanghai to assess Dior and Louis Vuitton [1] - Arnault's visit led to discussions about Songmont and Laopu Gold [1] Emerging Brands - Songmont and Laopu Gold gained attention following Arnault's visit [1]

Core Insights - Chinese luxury market is showing signs of stabilization after a period of weakness, with executives from major brands expressing cautious optimism about demand recovery [1][3][15] Company Performance - Prada's CFO noted a stabilization in demand, suggesting a more normalized market may emerge by 2026 [3] - Coach reported a 20% growth in its China business, indicating strong momentum and effective positioning to attract cautious consumers [5][6] - Burberry's Greater China sales increased by 3% last quarter, surpassing expectations, while Richemont experienced a significant improvement from earlier declines [7] - LVMH reported a 1% growth in the third quarter, marking its first quarterly increase this year, with positive signs from mainland China [8] Market Trends - The luxury sector in China has been affected by high youth unemployment, a prolonged property downturn, and weaker household confidence, impacting discretionary spending [2] - Analysts caution against assuming a full rebound, noting that improvements may be due to easier comparison bases rather than a broad-based recovery [10][11] - Global brands are increasingly localizing their strategies in response to intensified competition from Chinese labels, with some dedicating over 40% of revenue to China-focused marketing [11] Consumer Behavior - The rise of social media platforms like Xiaohongshu and Douyin is prompting companies to rethink their content and product strategies [12] - EssilorLuxottica reported broad-based growth across regions, indicating that consumers are not trading down but are attracted to product innovation [13]

The US decision to lower Swiss tariffs means respite for the country's watchmakers, who have struggled with weaker sales. https://t.co/TZhGqgMa3w ...

yes, the rich americans still need access to their pateks, aps and rolex. https://t.co/etfFdVm7pv ...

Core Insights - The article discusses the importance of enabling Javascript and cookies in browsers to prevent access issues [1] Group 1 - The article emphasizes that users may be blocked from proceeding if an ad-blocker is enabled [1]

This story was updated at 1:00 p.m. ET on Friday, Nov. 14. LONDON – Sales at Cartier parent Richemont grew 10 percent at constant exchange to 10.62 billion euros in the first half despite a raft of challenges ranging from surging gold prices to geopolitical events. More from WWD Sales at the group, home to brands including Van Cleef & Arpels, IWC, Alaïa and Chloé, were up 5 percent at reported exchange in the six months to Sept. 30. The second quarter was a standout, with all regions delivering double-di ...

Richemont sales jumped on better-than-expected demand in the the Americas and the region including China, the latest signal the luxury industry is turning the corner https://t.co/N1xUErNg5Q ...