Luxury Watch and Fashion Sales Plummet in China Amid Economic Downturn and Changing Consumer Tastes

Chinese consumers becoming more cautious and price-sensitive with big-ticket purchases like luxury goods
Swatch Group CEO expects weaker sales in China to continue until end of year due to higher cost of living and slowing economy
Swiss watch exports to China dropped 25% and Hong Kong dropped 19% year-over-year in February 2024
Gucci sales struggling in China due to dissatisfaction with new minimalist designs and general luxury downturn
LVMH also seeing lower sales in China and Hong Kong, considering reducing presence and investments in the region