The luxury boom is over

Summary:Sales growth in emerging markets for Burberry, Louis Vuitton and other luxury goods makers is finally running out of steam. To blame? A teetering global economy.

Bloomberg's Andrew Roberts reports this morning that luxury goods companies are seeing a global slowdown in sales, indicating that economic instability is finally hitting an area of the world that has thus far proved resistant: Asia.

Roberts reports:

In China, where a boom in demand for watches and jewelry has spurred sales gains for some companies, the economy grew at the slowest pace in three years in the second quarter. Europe’s debt crisis is damping the economic outlook and the region’s banks have laid off 172,000 workers since 2009, while the U.S. unemployment rate has been above 8 percent since February 2009, the longest stretch in monthly records going back to 1948.

Luxury goods makers such as LVMH (Burberry, Louis Vuitton, etc.) and Richemont (Cartier, Montblanc, etc.) benefitted greatly in the wake of the 2008 financial crisis as wealthy shoppers' fortunes rapidly rebounded; it now appears that the ongoing economic troubles in developed economies are finally curtailing growth in emerging markets.

Burberry’s Stagnating Sales Indicate End to Luxury Boom [Bloomberg]

Photo: Burberry

This post was originally published on Smartplanet.com

Topics: Innovation

About

Andrew Nusca is a former writer-editor for ZDNet and contributor to CNET. He is also the former editor of SmartPlanet, ZDNet's sister site about innovation. He writes about business, technology and design now but used to cover finance, fashion and culture. He was an intern at Money, Men's Vogue, Popular Mechanics and the New York Daily Ne... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.