You read last fall quite a bit from Your Survival Guy about the lull in luxury goods sales in Paris.
- Have We Seen Peak Louis Vuitton?
- Your Survival Guy in Paris: Luxury and You
- Your Survival Guy in Paris: Hermès
Mostly, it appeared that Chinese buyers had disappeared from the market in the face of some troubling economics in that country. Since the beginning of 2025, like much of the market, Young Research’s Luxury Goods Index has fallen from its recent highs.
But take a longer term look at luxury, and you can see that the industry peaked in 2023 and has had trouble recovering since the post-Covid retail surge ended.
Much of the future of luxury could rely on China. The country’s consumers have been critical to luxury sales for some time now. In the face of its troubled economy, The Guardian’s Helen Davidson reports that China’s leaders plan to “vigorously boost consumption” with stimulus measures. She writes:
China’s government has announced ambitious plans to “vigorously boost consumption” by putting up pay and reducing financial burdens, in its latest attempt to increase consumer confidence and lift its struggling economy.
Action Line: Whether or not China can sustainably boost its economy with temporary stimulus measures is a matter of economic debate, but if the country’s leaders flood their citizens with money, they may decide to return to Paris shops and buy once again. Next time Your Survival Guy is in the city, you’ll be the first to know how it’s going for luxury goods retailers if you click here to subscribe to my free monthly Survive & Thrive letter.
