LVMH has observed a decline in travel and spending among Chinese consumers in recent months, according to deputy chief executive officer Stéphane Bianchi.
“For the past three months, Chinese tourists have been traveling less and buying less,” Bianchi said during a hearing with French lawmakers on 28 May.
His remarks follow earlier reports from Bloomberg noting softening demand in the luxury sector. In the first quarter of 2024, LVMH reported an 11% drop in organic revenue in the Asia region that includes China, mirroring the decline seen across the full year.
Bianchi also noted a shift in consumer preference among Chinese shoppers, who are increasingly turning to domestic brands. While he did not name specific companies, he said, “some Chinese jewellery companies have seen an explosion in demand.”
On the US front, Bianchi commented that demand remains uncertain due to ongoing tariff concerns. As a result, the group has decided to halt price increases in its wines and spirits division.
“We cannot increase prices indefinitely,” he said.
Shares in LVMH, which have fallen more than 20% in 2024, rose as much as 2.9% in early trading on Thursday, following a broader market rally after a US court blocked former President Donald Trump’s tariff strategy.