Fears of a slowdown in luxury spending among Chinese consumers have been growing for some time, and recent events have underscored this concern. Kering SA, the parent co of Gucci, experienced a significant decline in its market value following a warning about slumping sales of Gucci products in China.
Its parent company saw US$9 billion wiped off its market value after warning that Gucci's China sale have slumped this quarter. Read more at straitstimes.com.
While some luxury companies are managing the fallout better than others, the rest could be forced to rethink how they do business in China starting with Kering.
Fears of a slowdown among Chinese shoppers have dogged the luxury industry for the better part of a year. Last week the scale of the problem hit home for one of fashion’s biggest but most exposed brands, Gucci. French group Kering SA saw $9 billion wiped off its market value…