Core Viewpoint - The article discusses the recovery of luxury goods consumption in China, highlighting a rebound in demand and the differentiation between high-end and mass-market segments [5][11][31]. Group 1: Luxury Goods Market Recovery - In Q3 2025, LVMH reported total revenue of €18.2 billion, marking the first sales rebound of the year, with a 7% growth in the Greater China region [5][14]. - The consumer confidence index in China has been steadily rising since reaching a low in September 2024, indicating a gradual recovery in consumer spending [5][9]. - The luxury goods sector is experiencing a notable recovery, with many brands reporting their first positive growth since the pandemic, suggesting a restoration of industry confidence [12][18]. Group 2: Market Segmentation - The recovery in consumption is characterized by polarization, where high-end markets are recovering faster than lower-tier markets, which remain cautious and price-sensitive [11][21]. - High-end brands are benefiting from increased consumer confidence, while mass-market brands are pressured to lower prices and offer promotions, impacting their profit margins [21][29]. - The demand for high-end gold jewelry has surged, with companies like Chow Tai Fook reporting significant growth, contrasting with a 33% decline in overall gold jewelry consumption [23][31]. Group 3: Performance of Key Brands - Prada achieved a 10% growth in Q3 2025, driven by a 41% increase in its Miu Miu brand, appealing to a younger consumer demographic [18]. - The performance of luxury brands such as LVMH, Prada, and Hermès in Q3 2025 indicates a positive trend, with many brands returning to growth [13][19]. - The retail performance of high-end shopping malls, such as the Shanghai Taikoo Hui, showed a 41.9% increase in sales, further supporting the recovery narrative [20]. Group 4: Future Outlook - The article suggests that the recovery of high-end consumption may eventually extend to broader consumer segments, leading to a more sustained recovery in the luxury goods market [35]. - Investment opportunities in 2026 may arise from focusing on high-end segments while remaining cautious about the pressures facing mass-market brands [31].