---
title: "Bulgari CEO sees China luxury market recovering in next two years"
description: "China’s luxury market may recover in the next 24 months as the country’s economy bounces back, Bulgari CEO Jean-Christophe Babin said."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Newsdeck"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2024-11-07-bulgari-ceo-sees-china-luxury-market-recovering-in-next-two-years/"
published: "2024-11-07T05:32:05"
updated: "2024-11-07T05:32:07"
lang: "en-ZA"
word_count: 208
---

# Bulgari CEO sees China luxury market recovering in next two years

> China’s luxury market may recover in the next 24 months as the country’s economy bounces back, Bulgari CEO Jean-Christophe Babin said.

By Bloomberg · Published 7 November 2024, 07:32 SAST · Updated 7 November 2024, 07:32 SAST

## Key points
- As luxury giants like LVMH and Kering grapple with a frugal China, their once-glamorous storefronts are turning into ghost towns, while online sales clutch at straws in the fading glow of post-Covid consumerism.
- LVMH reports a significant decline in sales at its physical stores in China, highlighting a shift towards online shopping.
- The luxury sector faces challenges as Chinese consumers remain cautious post-Covid, impacting brands like Gucci and Kering.
- LVMH's sales in the region dropped 16% in Q3, exacerbating concerns over a broader luxury market downturn.
- Bulgari aims to navigate the slowdown by focusing on women's watches and maintaining in-house production capabilities.

## Content

The LVMH-owned jeweller has seen a more visible downturn this year in China at its brick-and-mortar stores versus online channels that can reach more customers including those in smaller cities, Babin added Wednesday in a roundtable interview at the annual [China International Import Expo](https://www.ciie.org/zbh/en/) in Shanghai.

Read More: [LVMH’s Empty Chinese Megastore Signals Deepening Luxury Crash](https://www.bloomberg.com/news/features/2024-11-03/luxury-crash-deepens-for-europe-s-lvmh-kering-as-chinese-shoppers-stay-away)

His forecast comes as luxury giants from Swiss watchmakers to fashion brands struggle to lure back Chinese consumers. The world’s second-largest economy, long a cornerstone for global retailers, is yet to recover from the post-Covid slowdown that’s made its once label-obsessed shoppers increasingly frugal.

LVMH’s sales in the region that includes China fell 16% in the third quarter, more than its 14% drop in the previous three months. Kering SA warned that its annual profit will fall to its lowest level since 2016 after comparable sales at its biggest label, Gucci, tumbled 25% in the quarter due to the mainland slowdown.

Babin [said](https://www.bloomberg.com/news/articles/2024-09-04/swiss-watchmakers-including-girard-perregaux-seek-state-aid-amid-downturn) earlier this year that Bulgari’s focus on the more stable women’s watch market — and the fact that it makes the majority of its own parts like cases, dials and movements — gives it the ability to adjust production and ride out a decline in demand, including in China.