For years, French, Italian and American luxury brands have
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as China"s middle class developed a(n)
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for high-end fashion and jewelry. But that sales boom is
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based on the disappointing results many Western luxury retailers have reported of late,
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much suggests this slowdown will be
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.
French luxury brand Hermès said watch sales fell 11% in large
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because of China, and the company is expecting overall growth this year to remain
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compared to recent averages. Meanwhile, Prada said it expects the tough times for luxury to continue after its China sales fell 4% in 2014.
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, Hermès, known for its highly coveted Birkin bags and horse-themed silk scarves that go for thousands of dollars each, has continued to
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its stores in China. Why Because there is
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data to suggest that luxury"s current slowdown in China is
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a speed bump. According to a new report by the Economic Intelligence Unit
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by Citigroup, China"s wealthy will have double the
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of their U.S counterpart within five years. That means a lot of people will be wanting to shop at Prada and Gucci and buying expensive Estée Lauder beauty products. And such companies are happy to
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.
Fashion company Michael Kors which is just getting started with its China expansion, recently said sales there are "starting to
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." Kors" main competitor Coach, which plans several new stores in China, saw its sales there rise 13% in its most recent quarter. Tiffany is full 16 ahead with its China expansion
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disappointing numbers over the holidays at its Hong Kong stores, a favorite haunt of mainland customers. So it"s clear that any Chinese slowdown is seen by luxury and retail executives as a temporary change.
"China"s prestige beauty growth remains at high single digits, and we see
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opportunities to enter additional cities, doors and
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, and
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more brands," Estée Lauder CEO said last month.