CHINA’S luxury market may recover in the next 24 months as the country’s economy bounces back, Bulgari chief executive officer Jean-Christophe Babin said.
The LVMH-owned jeweller has seen a more visible downturn this year in China at its brick-and-mortar stores versus online channels that can reach more customers including those in smaller cities, Babin added on Wednesday (Nov 6) in a roundtable interview at the annual China International Import Expo in Shanghai.
His forecast comes as luxury giants from Swiss watchmakers to fashion brands struggle to lure back Chinese consumers. The world’s second-largest economy, long a cornerstone for global retailers, is yet to recover from the post-Covid slowdown that’s made its once label-obsessed shoppers increasingly frugal.
LVMH’s sales in the region that includes China fell 16 per cent in the third quarter, more than its 14 per cent drop in the previous three months. Kering warned that its annual profit will fall to its lowest level since 2016 after comparable sales at its biggest label, Gucci, tumbled 25 per cent in the quarter due to the mainland slowdown.
Babin said earlier this year that Bulgari’s focus on the more stable women’s watch market – and the fact that it makes the majority of its own parts such as cases, dials and movements – gives it the ability to adjust production and ride out a decline in demand, including in China. BLOOMBERG
