European luxury groups lose €250bn as Chinese demand fades
Europe’s six largest listed luxury groups have lost about €250 billion in market value this year, as Chinese consumer demand weakens, according to the Financial Times. Results from LVMH, Hermès and Kering missed already-reduced market expectations, the Australian Financial Review reports. Euronews says shoppers are increasingly seeking better deals, with some turning to second-hand goods and domestic brands.
Bottom line — Bank of America’s China consumer research head says China will remain important, but may not be a growth engine in two to three years.
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Euronews reports China’s economy grew 4.5% year on year in the third quarter, while domestic demand remained weak.
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LVMH blamed a slowdown in Chinese demand for lower organic sales in its fashion and leather goods division, Euronews reports.
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Bain & Company estimates China’s personal luxury goods market contracted by 3–5% in 2025, while its second-hand market grew by 15–20%, according to Euronews.
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Euronews reports Louis Vuitton closed five mainland China stores in the past two years; Galeries Lafayette shut its Beijing flagship in May.
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The Australian Financial Review says cooling stock markets and AI-driven sharemarket volatility are adding to pressure on luxury demand.