Weak Chinese Demand Continues to Squeeze Luxury Sector

Dow Jones
09/18

1054 GMT - Luxury companies should expect continued soft demand in China, Berenberg analysts say. The country is facing high levels of debt and a sustained fall in asset prices, in addition to other headwinds, the analysts write in a research note. "We expect Chinese data to continue to disappoint more often than not," Berenberg says. This matters as both consensus and companies still expect the Chinese consumer to be a key driver of global growth into the 2030s, they add. Furthermore, European luxury companies are grappling with higher competition in the market as Chinese brands continue to rise, Berenberg says.

 

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