Breitling Owner Says China Remains a Complicated Luxury Market
Breitling owner House of Brands gains market share in China but consumers remain hesitant to spend on luxury goods, CEO Georges Kern said.
Georges Kern, CEO of House of Brands, the parent company of watchmaker Breitling, said that while the group is gaining market share in China, the luxury market there remains challenging as consumers are reluctant to invest in high-end goods. The comments were made during an interview on Bloomberg: The China Show.
House of Brands has been expanding its presence in China, but the broader economic slowdown and shifting consumer sentiment have weighed on luxury spending. Chinese consumers, once the driving force behind global luxury growth, have become more cautious amid property market weakness and job insecurity. This trend has impacted luxury conglomerates worldwide, including LVMH and Kering, as China accounts for a significant portion of their revenue.
For equity investors, the cautious outlook on Chinese luxury demand signals potential headwinds for luxury stocks listed in Europe and the US. Companies with high exposure to China, such as Richemont and Swatch Group, may face continued pressure on sales and margins. Traders can monitor real-time price movements of these stocks on NowPrice's live dashboard. Looking ahead, investors will watch for any improvement in Chinese consumer confidence or stimulus measures that could revive luxury spending. Key data points include retail sales figures and consumer sentiment indices from China in the coming months.