Chinese Shoppers Revive Luxury Demand as Equities Rally Lifts Sentiment

5 articles · Updated · Bloomberg · May 31

Affluent Chinese consumers are buying more high-end beauty and fashion again, giving global luxury groups a rare bright spot after years of weak demand in a crucial market.
Results from L’Oréal, LVMH and Ralph Lauren, along with Bloomberg-compiled industry data, point to a pickup in spending as China’s stock-market rebound boosts household wealth and confidence.
That recovery is also easing the heavy discounting that had eroded margins, with signs shoppers are increasingly willing to pay up rather than wait for promotions.
For luxury brands, the shift suggests China may be turning from a drag on growth into a more supportive market again, even if the rebound is still early.

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