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Luxury brands need to reduce their exposure to China

By Astrid Wendlandt
Luxury brands need to reduce their exposure to China
China has played a major role in making luxury brands the size they are today. Without Chinese shoppers’ voracious appetite for luxury, Louis Vuitton, Hermès and Gucci and watchmakers Omega, Rolex and Cartier would never have become the powerhouses they are today. But all good things come to an end. Is it time to change focus? China’s huge potential is still there but luxury sales growth in the Middle Kingdom will not be as strong over the next 20 years as it was in the past two decades, industry insiders predict. Brands need to find new pockets of future growth elsewhere in Asia, Africa and in North America.

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