Why China’s Luxury Boom Is Over
ฝัง
- เผยแพร่เมื่อ 6 ก.พ. 2025
- The global luxury market has been booming for more than a decade, pushing up the values of companies such as LVMH and Kering. There’s one customer who has been key to that growth: the Chinese consumer.
But now, that’s all changed. Here’s why:
www.bloomberg....
#China #Business #Bloomberg
--------
Like this video? Subscribe: www.youtube.com...
Get unlimited access to Bloomberg.com for $1.99/month for the first 3 months: www.bloomberg....
Bloomberg Originals offers bold takes for curious minds on today’s biggest topics. Hosted by experts covering stories you haven’t seen and viewpoints you haven’t heard, you’ll discover cinematic, data-led shows that investigate the intersection of business and culture. Exploring every angle of climate change, technology, finance, sports and beyond, Bloomberg Originals is business as you’ve never seen it.
Subscribe for business news, but not as you've known it: exclusive interviews, fascinating profiles, data-driven analysis, and the latest in tech innovation from around the world.
Visit our partner channel Bloomberg Quicktake for global news and insight in an instant.
The Luxury Industry is the Biggest Scam known to Humankind. RIP!!
Don't forget German luxurious cars, like Porsche/BMW and the likes. Just a waste of money!
@@oceanwave4502 lol. No.
they will always survive somehow as long as there is vanity in humans
HanumanKind
RIPBOZO(s)
An achievement for humanity. We should all ditch these scams.
Ditch fast fashion🤡
LVMH employs 85,000 crafts people on an average salary of €75k - should they be unemployed and we all wear sh!t...???
No one is forced to buy those
@@piccalillipit9211 they should all be making quality long-lastong goods, not the latest overpriced luxury fashion trinkets. Make a raincoat with a lifetime warranty for $1,000, not a weird 2025 Spring collection piece for $5,000.
The Chinese just realized buying foreign luxury goods is just a waste of money, which it is.
Luxury segment is a strength of Europe (in comparison to the rest of the world). But given an ever increasing inflation, more and more people don't want to buy such things. What could possibly go wrong for Europe? (hint: less and less relevant in the world stage, because they have nothing else to offer! No AI, no EV, no Solar Panel, no SpaceX, ... now no 'affordable' products).
@@oceanwave4502 🦜🦜🦜
Wow , u know them better.
Why support your enemy especially the Italians with the way theyve been treated
@@oceanwave4502 we do have EV and also have own successful AI projects, please tell this story to all immigrants knocking on our door so they stop coming 😂
Demonizing the Chinese while still expecting them to consume your products. What could go wrong?
AH - the US is demonising them - the US does not make the luxury goods...!!!
France has been demonizing china?
Chinese dupes are made in the same factory as the original 😂
And the luxury brands sell both 😂
And cost a hundred times less. Luxury is the biggest scam humankind has ever seen.
Correct title should be "The boom of western luxury brands in china is over"
Exactly. But it's Bloomberg, what do you expect? Typical Yankee projection. Maybe they even got money from USAID.
So ... the boom of Chinese luxury brands in China is still booming?
@@zilun there are no relevant chinese luxury brands
"...bought too much and it didn't really make us happier."
They speed ran capitalism? Chinese are now far, far ahead of Americans! 😭
lol I think the Chinese speedran the world in everything
And they ran out of money 🤣
@@stachowiChinese have the largest cash reserves on earth. But cope harder bro
They are taught philosophy at school from a very young age
@@johnc1873
Actually *NONE* of these reasons can account for a -34% drop. After the recent scandals they just realised that Dior spends 50€ for a bag and sells it at 3 *THOUSAND* € !!
A x60 mark up has only one name: *SCAM*
everyone has known about this. They pay the high price for the look of status. That’s the whole point 😂
I worked a couple of years for one of the most popular brands out there and had insight into production costs etc and I can tell you that a x60 mark up is pretty common. A lot of stuff had like x250. It is a total rip off, basically monetizing humans vanity and will to show off status even when they basically put the money on fire.
Should they sell you at cost then?
That's the whole point of luxury item, what wealthy person wants to wear the same as peasants, problem arises when they started to target the middle class profits increased
Actually China's foreign luxury boom is over as Chinese consumers are buying more domestic luxury brands instead. That's the effect of a trade war and tariffs.
That's pretty much the thing
There are no domestic luxury brands in China. Everything they make is cheap. You're making things up. 🤣
Actually no. Chinese people are not spending on any domestic luxury either. The poor economy I why people don't spend.
@@xiphoid2011 u are here again.😂😂
@@KennethGiuffre-i5n Do you know how much a really nice silk Hanfu costs? Luxury brands are for people who like to show off!
as a chinese,I think this is a mixture of slowing economic growth and disillusionment with the West
@fuelscoth4394, what about luxury Chinese products, are the Chinese shifting to purchase local luxury brands over western luxury brands ?
@@RaghulS-hj6vt In fact, what you described is very accurate. The sales of Porsche or Lamborghini may only be half of what they were five years ago. Everyone is proud to buy Huawei and BYD. If you show off online that you spent a lot of money on LV bags, people will think you are an idiot
“Luxury” is a scam, they figured it out
"disillusionment with the West". And what were the illusions about the West people had before?
You are right to be disillusioned with the West - 50% of the west is disillusioned with the west. Hopefully, when the EU breaks away from Am3ric4 in the next few years you can see that the EU is not "the west" and your opinion of the west is largely Am3ric4. I left the UK for Bulgaria because it was becoming too Am3ric4nised.
I hope the EU and China can have much stronger ties in the future and we can appreciate watching other cultures and the cultural heritage. We can buy your luxury goods and you can buy ours.
BTW - I was delighted to see Hanfu dress becoming more popular among the young in China, I'm a tailor of bespoke men's historical English suits and I am absolutely delighted that people are taking pride in their own dress.
One reason not mentioned in the video is that Chinese people are increasingly paying attention to the pursuit of their own cultural taste. More and more Chinese are willing to spend a large amount of money on exquisite Chinese silk products, traditional aesthetic bags, exquisitely crafted Hanfu, and Chinese-made cars that are more aesthetically pleasing, technologically advanced, and cheaper. The quality of Western luxury goods and some of their absurd aesthetics are increasingly failing to withstand scrutiny and comparison. Compared with China's emerging automobiles, Western luxury brand cars are becoming more and more lackluster. This is a very important point and undeniable trend.
And taking in consideration how much West loves to demonize China I'm not really surprised i think this should've happened long time ago. Quality of most luxury brands went down the drain in past few years. We should all stop buying 60x marked up luxury brand and start supporting local craftsmen. Also the ethics of most of them is questionable Loro Piana is practically stealing vicuña, and we are still supporting and buying this....
Yes quality and value for money counts.
Dupes are amazing. I bought my wife one for Christmas, she loves it. And honestly I was surprised with the quality. We'll see how well it holds up, but if it does, she'll be getting more of those and less of the expensive ones
As a Chinese living abroad, many of us now think owning a made-in-China Zeekr electric car is cooler.
During the Xinjiang cotton controversy, nearly every luxury brand was boycotting Xinjiang cotton, and their advertisements were often racist, with actors in the ads having narrow eyes. Chinese consumers felt insulted by this. Additionally, many Chinese shoppers who had queued up to buy luxury goods in Paris were treated rudely and mocked worldwide for being ill-mannered and lacking in quality. Once these issues were amplified by Chinese media, Chinese people stopped buying. Instead, they began focusing on purchasing expensive real estate, alcohol, tea, and electronics. Even when it comes to cars, they prefer brands like Huawei, Xiaomi, Li Auto, neo，Chery, and BYD.
'What we're experiencing is something china has never experienced!'
I don't know man. I feel like they might have seen one or two luxury fashion trends before over thousands of years
👆💯 I don't really buy the explanations this video provides for that reason. That level of historical obliviousness can't help but make me second-guess their analysis
you don't understand the abject poverty 99% of China lived in until ±10-15 years ago
China is well ahead of every country in technology,science etc,they need to stop buying so called luxury fashion brands like bags, watches, cosmetics,perfumes etc etc of Europe,America,,, this brands will collapse.they can produce their own.
Luxury cars like BMW, Ferrari, Lamborghini too.
I think Covid also told people whats more important, a nice LV or fun experiences of life
facts! Memories over materials
I do feel like in a couple of years they may turn back, but with the mindset of not having the luxury items but experiencing the luxury lifestyle, and these luxury brands are shifting more to servicing lifestyles than selling products
Europe : China is a threat
Also Europe: why China is not buying our products.
As Chinese we still love luxury products, especially for women regarding with Luxury handbags etc, but the main difference is like the video said, there are so many Chinese-made luxury brands that design the goods the same if not better but with a fraction of the price, is different than the 1980s where we have a knock-off version of louis vuitton but the quality is also horrible. The products China made these days are genuinely impressive but just with a cheaper price due to no "Luxury tax" on them (Especially many western luxury brands are literally made in China), with that being said China's Luxury goods are still booming, is just that those popular Luxury brand are no longer popular. (Not Burberry tho, Burberry is still a huge thing in China, even I like Burberry cuz I do think their trench coat design is cool)
Hopefully, when the EU breaks away from Am3ric4 in the next few years you can see that the EU is not "the west" and your opinion of the west is largely Am3ric4. I left the UK for Bulgaria because it was becoming too Am3ric4nised.
I hope the EU and China can have much stronger ties in the future and we can appreciate watching other cultures and the cultural heritage. We can buy your luxury goods and you can buy ours.
BTW - I was delighted to see Hanfu dress becoming more popular among the young in China, I'm a tailor of bespoke men's historical English suits and I am absolutely delighted that people are taking pride in their own dress.
Chinese buying local with superior quality
Any Proof?
@@jeevan88888 Hanfu movement, it's not just clothes, but anything related to Wuxia pop culture, they prefer Luckin over Starbucks, etc... If it has Chinese themes on it, they prefer to buy it. The younger generation especially are the most nationalistic.
@@jeevan88888 lots of stuff made in China even the label says made in overseas
China’s luxury boom is slowing due to a weak economy and fewer jobs. Young people are saving instead of splurging. Flexing wealth isn’t trendy anymore.
And it should have never been
Fewer jobs? You are too simplistic here. Not any kind of jobs can give you a paycheck that can afford luxury goods. Middle class Chinese aren't going to spend a lot on luxury goods other than just Apple iphone. How many Americans can afford luxury goods without taking loan or in debt?
Also, the European luxury product aren't reliable. The consumers stop buying expensive things if they're not reliable.
What "weak economy" ? It's projected to grow at 5% while USA is at 1.2% and EU in recession
@@poros4588 5% is a massive slowdown compared to previous years.
people realized there's better stuff to spend on than a $5000 bag that does the same thing as a $50 bag?
Chinese finally started appreciate the goods with high quality and craftsmanship not for the brand name to project their images and social statuses.
ppl are over paying 1000’s just for someone else’s name. The qualities is not worth it. People are waking up.
as a very very ordinary mid-age consumer, I do love luxury. but most of the items sold at high price is not actually luxury. those I do consider luxury is out of my reach financially. luxury mentioned here are toys for the rich and unnecessary for the poor. by the way, I don't understand why hermes , lv， gucci...are luxury . they are just high price consumer goods. when we give those products a label 'luxury', we don't give luxury the word dignity.
Are you chinese?
It all that is, just a trend, fads, all fade away. Focus on learning to make your soul eternal. Invest in mankind as opposed to material stuff
Imagine spending thousands on something that takes so little to produce just to have a 'brand' on you to showcase to people who wouldn't care if you perished forever.
Prioties are on the wrong things.
"Signaling" is as old as time, it's part of nature. Animals do it, humans do it.
@jackwilliamburgess what do humans signal with luxury brands?
In spite of all the factors listed in the video, China's retail consumption grew last year more or less on track with its GDP growth, which was a little less than 5%. The root cause is much simpler: Western soft power has collapsed. That's the mother of all Western brands
As if GDP really grew 5%.
@@tobiwan001 Keep telling yourself that if it makes you feel better.
@@tonglu3699 I don’t too feel better. It’s just doubtful. And I am not the only one who is suspicious. Unemployment is sky-high. The real estate market is in the third year of crisis. There’s massive overcapacity in industry. That does not mean China does not have some excellent companies. It’s just that macroeconomically it does really add up.
@@tobiwan001 If you operate on such bad information, of course it'd be natural for you to doubt the numbers. I do agree there are legitimate reasons to think the numbers are not absolutely accurate, simply because the inability to measure everything in a big economy, especially considering China data collection capability still cannot reach all corners of its economy, but these are the same metrics compiled by the same international institutions like IMF and World Bank year after the year using the same methods. If they are wrong, they are wrong in the same way, which means relatively they are just as informative as before. Then there is the straight ignorance - China's overall unemployment is a little less than 5%, perfectly normal and better than most of the advanced economies. The youth unemployment is uncomfortably high still - last I checked it was about 16%. Meanwhile there are over 25 million job vacancies in manufacturing. This is a problem of skill and expectation mismatch with economic reality. It's a problem around the world by the way - in Canada where I spend a lot of time every year, youth unemployment right now is about 14%. In China's case, it's caused by supply side restructuring - the end of the real estate expansion and the pivot toward high end manufacturing and services. Real estate market has more or less bottomed out by now. There were plenty of bankers predicting this would happen early 2025 as soon as the real estate bubble popped, because by 2025 new home sales would drop to natural replacement level. We are now seeing real estate price slightly rising again in 1st tier cities. It could take a little longer for less developed areas to stabilize. And overcapacity according to whom? Chinese products are killing competitors in markets all over the world. Of course, they'd cry "overcapacity". How do you think the US won the Cold War against the Soviet if not through superior productive capacity? Don't get me wrong, I don't think double digit growth China enjoyed in the last couple decades would ever come back - mass urbanization can only happen once in a country's development. But all things considered, 4% to 5% of growth sounds about right.
Local brands provide better quality than most of these so-called luxury brands with a justified price tag.
I truly support the idea of President Xi regarding relatively equal in terms of wealth
China is saying bye bye to European goods.
China's magnificent 1500HP EV's like the SU7 (fastest production car on earth) and its opulent 605mph hi-speed train enter the chat... nothing in the world compares with their luxury😮
There are many luxury brand OEM factories in China. According to the financial reports of these companies, the cost of producing luxury bags is too low.
Quiet luxury is the game now. They're looking for exclusive Chinese designers brands that sells limited items.
Frist, many Chinese who like luxury goods have already owned them. Secondly, people has changed their view towards to those luxury goods. Many pepole use luxury goods to represent their success, their style perviously, those people now changed to travelling, sports, etc. Thirdly, the decreased real estate prices and slowed economic growth definately played a part to it.
China is maturing.
This trend towards life experience rather than competitive consumption is just part of that maturation.
Oh, and I just received my newspaper print Saddle *xbagy* . It’s a special bag! There are few bags that get me so excited. Great video!
The anti-chinese rhetoric from European countries might have soured the relationship?
Yep. Making something that cost pennies to make and selling for thousands is a marketers dream. Also a complete scam.
According to the news China has been in crisis for the past 50 years, but has GDP of the whole Europe...
According to the IMF and World Bank 2024, 50% bigger than EU and 30% more than US.
Because buying luxury goods make the rich richer, poor poorer
It's basically a scam
Also people realized they can just buy a knock-off to flex....in China and Japan I've seen almost everyone wearing knock-off Moncler jackets.
also the quality of luxury products deteriorated. nowadays knockoffs often have the same or even better standards.
Chinese new money are too smart, they had their fun. Shortest boom ever 😂
Chinese speed ran capitalism! They have speed ran the world in everything! Lightyears ahead
What does "Shortest boom ever" mean?
4:17 "because Chinese customers just buy everything."
5:10 "my readers, they wrote me messages saying that they pay more attention on mental health now and they're trying to explore themselves versus just be an elite,have fancy jobs and be a successful person."
5:27 "then I shifted to hosting wellness-related workshops,events and retreats"
They see the factories the “luxury” clothes are made in China and realize they aren’t so luxurious.
China stagnated, Xi: behave poor now 8:00 LVMH and others turn to India, Asean, Muslims
It's been 3 years now.
When are these people gonna stop calling China's annual 5% GDP growth (at least double the US) "shaky"?
as much I want this to be true, I am calling bs on this one. The SOLE reason the luxury market is down is because the economy and consumer confidence is down. Once those are up, you will see a significant rebound, mark my words
China is the home of replicas, so it makes sense for them to easily swap the OGs with them.
"real estate as a vehicle for wealth creation" how to say it's a bubble without sayng the word bubble
I'm favoured financially with Bitcoin ETFs approval, Thank you buddy.$28,600 weekly profit regardless of how bad it gets on the economy.
Same here, I strongly agree that the Bitcoin ETFs approval will be greatly life opportunity for us, with my current portfolio of $102,500 from my investments with my personal financial advisor Jeff Wecker I totally agree with you😊
YES!!! That's exactly his name (Jeff Wecker) so many people have recommended highly about him and am just starting with him from Brisbane Australia...🇦🇺
The very first time we tried, we invested $1000 and after a week, we received 4500. That really helped us a lot to pay up our bills.
China now has her own brand of luxury products.
Like what
😂why buy expensive pos western lux... to support companies that wants war!
Nah, The chinese are Just simply boycotting western brands. With so many rumored insults like the alleged cotton controversy and labour abuse yet western brands think that they'll still get the chinese consumer support?
Buying local fashion naturally will be 100x cheaper and it's not that the economy is doing poorly but rather one only needs that many clothes to wear... and the Chinese end up having the highest savings in the world.
Many once quiet western luxury stores are replaced by now bustling local brands or cafe/diners.
They can no longer afford luxury
Anti china propaganda
Luxury items are for the middle class who got roasted by the property collapse
The Western luxury goods are so expensive.......Chinese people can't be fooled anymore.
In India ain’t no way we are buying that stuff, India just now proposed deduction in taxes and with this…😅
You mean people wearing luxury products isn't a common sight in India? Not even in big cities?
As long as the consumer is willing to pay a high price for goods, businesses will gladly accept their money!😅
western propaganda
In china you see so many luxury stores in huge malls but so many of them either have no customers or are shutting down
The term "dupe" is appropriate. It is not a counterfeit product, as so many people often assume. "Knockoff" is also used but it unclear whether it means dupe or counterfeit. A product like a purse can have some protection, but it usually applies to a logo, or one particular aspect of the design, not the entire aesthetic or idea of the purse design. I think there will be a surge of luxury Chinese items, because they have shown in the mass manufacture of Western clothing brands, that they are capable of the best stitching and manufacturing. The first top Chinese luxury brand is likely to be an EV, a smartphone or some other technology device.
If you are mad and salty at the luxury industry, you just want them and can't afford them.
It's a boycott and we have no clue 😂
China has the largest middle class in the world, 800,000,000 and it's growing. They are best NEW consumer base in the world and the West are shooting ourselves in the foot.
The chinese economy has been poor since 2022, even we shanghainese, the wealthiest, are saving rather than spending. Being thrifty is the new trend even for the young.
Are you " we shanghainese, the wealthiest" ?
3:14 wealth has been swept away by the property market crisis
None of my wealthy Chinese friends buy luxury goods in China; they always purchase them while traveling or staying at their vacation homes in Europe.
Interesting video! 😯 It’s crazy to see how China’s luxury market has shifted lately. 🤑💸 Curious to see what the future holds for the industry! 🔮
Last Christmas I went to Oslo, the capital in Norway. The only people shopping in the luxury stores was asian tourists. The exchange rate makes it more profitable to come here to buy such goods.
luxury goods in china is still ok. about 80% of all luxury goods are for chinese market, only chinese can affored it. korea and japan need chinese tourists to buy their products. look china at present has 500m middle class, in the next decade will be 800m middle calss in china. so it is not over yet, because chinese products are so higher standard now aday, chinese are actually perfer chinese products.
"aspirational luxury goods customers" means the segment of consumers spending way beyond their means.
What went wrong is that its not the pandemic anymore where people was spending money.
There is a much more logical explanation to all of this: general apathy towards western brands.
Starbucks, McDonalds and Apple are all struggling in the Chinese market now due to this trend, and since China doesn’t have luxury brands: this generalization is promoted further. i.e. luxury doing poorly=economy during poorly.
Chinese realize the truth of luxury. Its all branding. Theyre usually low quality. The chinese the can produce far higher quality goods that look better and for far cheapee
Another People's Republic of China W as always.
Oh they DO still buy luxury...just not Western luxury. What did you expect? That the constant bullying and trash talking of the Western media and politics won't have any effect?
🟢 Hello from Bucharest, Romania - a huge underrated city in Europe:)
Luxury is a scam
the thumbnail for this video is incredibly cursed
if you know you know
THE BIGGER THE BOOM , THE HARDER THE FALL
Does this mean BMW’s can stop being eyesores?
You forgot to somehow make this a Tesla story.
China is experiencing similar trend what US experienced in 2008 financial crises. Give it time it will recover. Chinese love face and luxury and wealth fits with the culture.
It's called...Knockoffs 😂
Also, all the big name brands have been investigated by Italian police for charging way too much for their products.
Luxury goods are done targeting the Chinese and moved onto other prey.
Where did my comment go? Ive wrote a long essay
Because even if you have all this stuff, you are still living in CCP police state.
Property market slump, that’s putting it gently.
Why pay US$2000 for a bag that costs $57 to make? 4:58
Luxery brands products just ain't worth it they're just products with huge price tag nothing special.
Luxury names and all that is dumb
That thumbnail hahaha ... goat see...
😂😂😂😂😂
because no more money laundering
2021. Bloomberg: Chinese economy risks deeper slowdown than markets realize.
2022. Bloomberg: China Surprise Data Could Spell RECESSION.
2023. Bloomberg: No word should be off-limits to describe China's faltering economy.
LOL wrong every time! China will actually INCREASE their luxury goods boom
its not that you dum dums , luxury brands are not cool anymore , and thats something an analysis in a bank can not understand
Seriously who really needs 10 of everything so many people are saying no more and saving their cash.
Anglo Saxon crying about China leaving their brands 😂
The money is gone.