LVMH sales of jewelry and watches decline in China due to overseas shopping
LVMH reports its sales of jewellery and watches have dropped in mainland China and are being offset by Chinese nationals buying overseas. Swiss watch exports to China fell 19 percent in May, according to the Federation of the Swiss Watch Industry. Sales have declined as economic growth has weakened and as the Chinese government’s austerity campaign has curbed demand for high-end products popular for business gifts.
“The watch sector overall has been declining in China this year due to the economic slowdown and also off the back of the anti-corruption measures,” Aaron Fischer, an analyst at CLSA Ltd. in Hong Kong told Bloomberg. LVMH owns brands such as Bvlgari, Chaumet, Hublot, Tag Heuer, Zenith.