China’s luxury market is expected to rebound in 2026, a reprieve for European fashion houses heavily reliant on the giant market.
Premium spending in China — which consultancy Bain said has become the “cornerstone of luxury market growth” — plummeted last year, dragging down firms’ share prices: LVMH’s has fallen by almost a quarter in the last 12 months, wiping more than $100 billion off its valuation.
China’s slowdown and a slumping real estate market have led millions to cut spending, while local labels are competing with foreign luxury players.
“Some brands are very special, like Louis Vuitton and Chanel,” one Beijing shopper told the Financial Times. But Chinese ones were, she added, now “very good,” too.
