Consumer sentiment dampens in the US, while Chinese consumer sends mixed signals for luxury sector

Source : LVMH Official website, © Laure & Sarah / Karine Garnier

Luxury companies are facing a slowdown in their sales, especially within the United States in recent months. Despite a surge in spending by affluent shoppers following the pandemic, this spending frenzy is now easing due to factors like persistent inflation, higher interest rates, and tougher credit conditions.

This decline in sales is impacting various players in the luxury industry, including major names like LVMH, Burberry, Gucci, and many others. The shift is particularly noticeable among customers who aspired to own luxury items and are now holding back.

The performance of luxury brands is also influenced by uncertainties in the Chinese consumer market. The Chinese economy's mixed signals are causing an uneven recovery across the broader luxury sector.