Chinese shoppers are returning to luxury. Top executives from Prada, Coach, EssilorLuxottica and Value Retail told CNBC they’re seeing demand in China stabilize after months of weakness, even as the broader luxury sector continues to report softer spending among Chinese consumers at home and overseas.
China was on track to become the world’s largest luxury market during the coronavirus pandemic, but the sector has slowed sharply since then. High youth unemployment, a prolonged property downturn and weaker household confidence have weighed on discretionary purchases, particularly among middle-income shoppers.
Speaking to CNBC’s Charlotte Reed at the JPMorgan Global Luxury and Brands Conference in Paris, France, executives said they are beginning to see a change in spending patterns. Andrea Bonini, chief financial officer of Prada Group, said the company is “cautiously optimistic.”
“We do see things stabilizing, indeed,” Bonini told CNBC, adding that “the structural trends in this industry are still there, and are still there in China as well.”
Prada’s CFO said a more “normalized” backdrop may only emerge in 2026 after the sharp swings that followed the pandemic.
