LVMH warns that Chinese people are buying less foreign brand names, preferring to buy more local brands

Luxury brand LVMH has warned the luxury market that Chinese consumers are cutting back on overseas travel and spending and are increasingly turning to local brands.

29 May 68 Stephane Bianchi, LVMH's deputy chief executive, said the company has noticed that Chinese consumers are increasingly interested in local brands. Without naming any specific brands, it said some Chinese jewelry companies had seen a big surge in sales.

It is unclear when demand in the United States will recover amid ongoing tariff uncertainty, Bianchi said, but the luxury company said it would not raise prices in its wine and spirits business.

“We can’t keep raising prices.”

Shares of LVMH, which have fallen more than 20% this year, rose as much as 2.9% in early trading in Paris on Thursday, amid a broader rally in stock markets after a US court blocked President Donald Trump's tax policies.

refer : bloomberg.com