SHANGHAI/PARIS – The luxury goods industry has relied heavily on China and North America for growth in recent years, but latest Chinese economic figures and a disappointing sales update from Cartier-owner Richemont suggest both markets may be starting to slow.
Major luxury brands have invested millions to reach new customers in the two markets, venturing beyond traditional high-end shopping centers to open new stores in places like Wuhan and Zhengzhou, or Charlotte and Nashville.
A post-pandemic U.S. splurge had already shown signs of flagging, leaving investors to pin their hopes on Chinese shoppers to sustain the monthslong spending spree that has boosted the sector’s fortunes.
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