Luxury Brands Face an Uncertain Recovery in China.

Chinese shoppers are returning to luxury stores but are spending less and visiting in smaller numbers; some brands report stabilization while a broad industry rebound remains uncertain.

Chinese shoppers are returning to luxury stores, but they are spending less and visiting in much smaller numbers. Some luxury groups have reported recent improvements: Richemont said sales grew in China in late 2025 and Burberry reported accelerating demand. LVMH described sales to Chinese consumers as stabilizing but not yet back to growth, and brands are adjusting their China footprints. Key facts: - Chinese shoppers are visiting luxury stores again but with lower spending and fewer customers overall. - Richemont and Burberry reported improvements in China in late 2025; LVMH reported stabilization but not resumed growth. - China's share of global luxury spending fell from about 35% in 2019 to roughly 23% last year, while U.S. shoppers' share rose to about 31%. - Much of Chinese household wealth is tied to property, and declines in home values plus high saving rates are limiting wider consumer spending. Summary: A return to the industry’s prior long-term growth would likely depend on a broader recovery in Chinese consumer spending. Pockets of demand may appear in Tier 1 cities where prices are stabilizing, but a widespread rebound is undetermined at this time. Luxury companies are adapting store strategies and offerings as conditions evolve.