The luxury outlook in China just keeps getting worse

Kering, the latest luxury brand to report earnings, said on Wednesday that it continued to see a "Deceleration" in Asia-Pacific. Consumer spending in China has been improving "More moderately than before COVID-19," Luca Solca, a luxury goods analyst at Bernstein, told Business Insider. Last week, the parent company of brands including Cartier reported a 27% decline in revenue in the combined markets of China, Hong Kong, and Macau, dragging total Asia Pacific sales down by 18%. To try to boost sales, luxury brands have given massive discounts to Chinese consumers. In early July, Marc Jacobs offered more than 50% discounts on Alibaba's upscale e-commerce platform, Tmall Luxury Pavilion, the FT reported. A recent survey by US investment bank TD Cowen suggested that Chinese consumers are spending less on luxury goods while spending more on overseas travel and safe assets such as gold. Luxury goods are still popular with wealthy Chinese shoppers - just not in China. Not all luxury brands are feeling the heat in China.