LVMH boss now shops for Chinese brands

For Bernard Arnault, head of LVMH and one of the world’s wealthiest individuals, trips to Shanghai are usually routine. But during his latest visit, he stopped at small boutiques and bought bags and jewelry from Chinese brands.

The timing fits the moment. The luxury market is slowing, sentiment is weak and local labels are rising fast. Some are now strong enough to catch the attention of the most powerful man in global luxury.

The Details

📉 Market slump: China’s luxury market lost up to 20 % last year. The main reasons are weak consumer confidence, high youth unemployment, and a troubled property sector that unsettles many households.

💰 Saving instead of spending: Chinese households are parking around 22.8 trillion USD in savings accounts. Even though money is available, very little is being spent because many view the economic environment with caution.

📈 First signs of recovery: Brands like Burberry report slight growth again in China. Prada notes stabilizing demand, and Coach is expanding at double-digit rates. More purchases are returning from Japan and Europe to mainland China.

👜 Local brands as winners: While Western houses struggle, domestic brands such as Songmont, Laopu Gold, and Mao Geping are growing at double and even triple-digit rates each year.

• They succeed with sharper pricing, stronger local aesthetics and more precise storytelling on social media.

Where the LVMH boss now shops

• Songmont: Minimalist leather bags with a strong focus on Chinese aesthetics and high-quality craftsmanship. Triple-digit e-commerce growth, a strong community focus, and a convincing price performance ratio.
  

• Laopu Gold: Traditional craftsmanship meets modern jewelry. The brand is growing in the triple-digit range, opening stores next to Cartier and Tiffany, and is seen as the first real domestic challenger in high-end jewelry.
  

• Mao Geping: China’s most famous premium beauty brand, designed specifically for Chinese skin tones. Products are heavily localized, and sales are rising at consistent double-digit rates. Investors see it as a potential future champion in Asia’s cosmetics market.