2024-07-26 22:32:04
New Delhi: The indifference of Chinese consumers, the world’s second largest economy, is taking a toll on global brands. China’s economy is facing many challenges at the moment. People are apprehensive about their future and are trying to save money instead of spending it. This is making the world’s top luxury brands sweat. The world’s largest luxury company LVMH says that its sales in China have fallen by 14 percent in the last three months, while in the first quarter this decline was six percent. This has not happened only with the Paris-based company LVMH. Many of its rival companies are also in the same situation. Chinese consumers have stopped making expensive purchases. Also, the government has censored the social media accounts of influencers who display their luxury goods online. LVMH is the world’s largest luxury group. It says that its overall revenue has fallen by one percent in the last three months. The company’s shares have fallen by 20 percent in the last one year. This has pushed the group’s chairman and chief executive Bernard Arnault to third place in the world’s richest list. This company owns more than 75 expensive brands including Louis Vuitton, Dior and Tiffany & Co.
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According to a BBC report, British fashion brand Burberry says that its sales in China have fallen by 20% compared to a year ago. Similarly, Swiss company Swatch Group, which makes Blancpain, Longines and Omega brands of watches, has said that its sales in China have fallen by 14.4% in the first six months of this year. Richemont, the company of luxury jewellery brand Cartier, has also seen its sales fall by 27 percent in China, Hong Kong and Macau in the June quarter. German fashion company Hugo Boss has lowered its sales forecast due to weak consumer demand in China.
It is clear from the recent data that China’s economy has not yet fully recovered from the shock of Corona. The growth of the second quarter and the retail sales figures in June have been lower than expected. The Chinese government has completed the remaining task. The government is tightening the noose around luxury brands online. The accounts of social media influencers who display luxury goods online have been censored. China’s government agency monitoring the Internet says that this has been done to prevent pornography and objectionable content.