China's luxury market shows weak growth

Signs are emerging that China’s once skyrocketing demand for luxury goods is slowing, The Wall Street Journal reported. Last month, Burberry (BRBY.LON, BB2.FRA) issued a profit warning due to slower-than-expected sales in China. The CEO of a distribution arm for diamond miner De Beers expected company sales growth from China to fall to 10%, down from 20% last year. LVMH Moet Hennessy Louis Vuitton (MC.EPA) also posted its weakest quarterly growth since 2009. Demand for the most expensive luxury products, however, appears unaffected by the slowdown in the Chinese economy. Sunseeker International, British yacht makers, reported last month an 18% rise in annual profits. China analyst Paul French said the days of easy luxury marketing in China were over. “The idea that you can just show up, show a luxury brand and make a sale is in the past,” he said.