China's offshore wealth crackdown trims top 25 luxury sales
Business
China's luxury scene is cooling off fast, thanks to new government rules cracking down on offshore wealth.
In July, sales for the top 25 luxury brands, including Louis Vuitton, Dior, Gucci, and Balenciaga, dropped over 10%.
Even Hermes went from growing to shrinking sales in just a month.
China tightens taxes, dents shopper demand
The government is now taxing overseas assets more strictly and tightening money leaving the country.
These policies mainly hit wealthy shoppers but have also made middle-class buyers rethink splurges as the economy slows down.
Once a growth engine for global luxury brands, China is now making things tough for high-end labels hoping for a comeback.