Archive · 2 Jun 2025
LVMH Warns of Reduced Chinese Travel and Spending
LVMH, a major luxury goods company, says that Chinese customers are traveling and spending less money.
The company's deputy chief executive officer shared this information with French lawmakers.
This change in behavior might mean there is less demand for luxury products.
Chinese consumers also seem to be buying more from local brands.
LVMH's revenue in the region that includes China fell 11% in the first quarter, and the company will no longer increase prices in its wines and spirits division.
Shares of LVMH rose in early trading after a US court blocked President Donald Trump’s tariff strategy.
LVMH's deputy CEO reported a decline in Chinese travel and spending.
Revenue in the China region fell 11% in the first quarter.
Chinese consumers are showing more interest in local brands.
LVMH will not increase prices in its wines and spirits division.
LVMH shares rose in early trading after a US court decision on tariffs.
- Who
- LVMH, Chinese consumers, and French lawmakers.
- What
- LVMH reports a decrease in Chinese travel and spending, impacting the luxury goods market.
- When
- Over the past three months, and the first quarter of 2024.
- Where
- China and the US.
- Why
- Due to a decline in Chinese travel, spending, and shifts towards local brands, the luxury goods market is impacted.
Chinese Spending
US Tariffs
Factors Influencing Demand
Chinese Spending
Chinese consumers are traveling less and buying less.
US Tariffs
The company is reacting to US tariff uncertainty.
- Q1 Revenue Drop in China Region
- 11%
- LVMH Deputy CEO
- Stephane Bianchi
- Chinese Tourists' Travel
- Decreased
- Wines and Spirits Division
- No longer increasing prices
- LVMH Shares Decline (Year to date)
- 20%