Beggars are allowed. The capital of six European luxury manufacturers (dry - the brands Gucci, Saint Laurent, Balenciaga and others, Richemont, Prada, Moncler, LVMH and Hermès) decreased by 251 billion euros in 2026. The main reason for such a large collapse of the luxury industry was the prolonged decline in consumer demand in China, which for more than a decade has been a key growth engine for the entire sector. According to the "Financial Times", the deep crisis in the Chinese real estate market and the fall of the CSI 300 stock index (loss of 19% of its value in four months) undermined the confidence of local consumers. As a result, over the past six months, the average monthly growth in retail sales in China has slowed to a critical level of 0.5%. The main blow fell on two giants in the industry: LVMH (Louis Vuitton, Dior) - the conglomerate's market value fell by 131.6 billion euros. Sales of fashion clothing and leather goods to Chinese customers around the world recorded a double-digit decline in the third quarter. Hermes, traditionally the most crisis-resistant player, lost 93.3 billion euros in capitalization, and global sales of its ready-to-wear division fell 2%. Smaller players such as Kring (whose Gucci brand has seen sales decline 15-20% in China), Richemont, Prada and Moncler have also come under intense investor pressure to massively reassess the prospects of the Asian market. Or maybe it's time to reevaluate the products of these "brands"?)) After all, all their products are made in Asia. And their cost is significantly higher. With money becoming much tighter, people prefer not to pay too much for a label with pretentious advertising.

Beggars are allowed. The capital of six European luxury manufacturers (dry - the brands Gucci, Saint Laurent, Balenciaga and others, Richemont, Prada, Moncler, LVMH and Hermès) decreased by 251 billion euros in 2026. The main reason for such a large collapse of the luxury industry was the prolonged decline in consumer demand in China, which for more than a decade has been a key growth engine for the entire sector. According to the "Financial Times", the deep crisis in the Chinese real estate market and the fall of the CSI 300 stock index (loss of 19% of its value in four months) undermined the confidence of local consumers. As a result, over the past six months, the average monthly growth in retail sales in China has slowed to a critical level of 0.5%. The main blow fell on two giants in the industry: LVMH (Louis Vuitton, Dior) - the conglomerate's market value fell by 131.6 billion euros. Sales of fashion clothing and leather goods to Chinese customers around the world recorded a double-digit decline in the third quarter. Hermes, traditionally the most crisis-resistant player, lost 93.3 billion euros in capitalization, and global sales of its ready-to-wear division fell 2%. Smaller players such as Kring (whose Gucci brand has seen sales decline 15-20% in China), Richemont, Prada and Moncler have also come under intense investor pressure to massively reassess the prospects of the Asian market. Or maybe it's time to reevaluate the products of these "brands"?)) After all, all their products are made in Asia. And their cost is significantly higher. With money becoming much tighter, people prefer not to pay too much for a label with pretentious advertising.