Concerns about slowing spending by Chinese consumers on luxury goods have plagued the industry for almost a year. writes about this Bloomberg.
The size of the problem at the beginning of the week happened This is evident at Gucci, one of fashion’s biggest but most vulnerable brands.
French group Kering SA lost $9 billion in market value after warning that the Italian brand’s sales in China would fall this quarter. The slowdown is starting to show itself in other segments of the luxury industry as well.
A separate report showed that exports of Swiss watches to China, a leading market for high-end watches, collapsed last month. Meanwhile, the agency writes that analysts predict that demand for luxury goods in China will decrease further this year.
The worrying news flow is the latest evidence that the expected surge in spending by wealthy Chinese who have escaped the world’s toughest Covid-19 restrictions is not materialising. The publication concluded that some luxury companies are coping better with this negativity, while others may need to rethink the way they do business in China, starting with Kering.
Shares of the largest gaming companies at the end of December collapsed Due to new restrictions on Chinese online games.
Previously the Russian government’s debt collapsed to the minimums of SVO start times.