Western brands under pressure as 'pre-owned' luxury booms in China
French luxury house Louis Vuitton has closed five stores in mainland China in the past two years - including a chocolate boutique in Shanghai - while Parisian department store Galeries Lafayette shut its Beijing flagship in May.
Western luxury brands are facing pressure in China as secondhand luxury market booms. After the pandemic, consumers are turning to pre-owned items and new domestic brands instead of Western luxury goods. French luxury house Louis Vuitton and Parisian department store Galeries Lafayette have both closed stores in mainland China in recent years.
While China's personal luxury market contracted 3-5% in 2025, the secondhand luxury market grew 15-20%. Domestic consultancy Insight & Info Consulting predicts total sales could reach 100 billion yuan by 2030. Luxury brands must work hard to stay relevant in China's digital and socially media-driven retail landscape. LVMH recently faced a trademark infringement lawsuit, which sparked online backlash and negatively impacted the company's image. Despite these challenges, China remains a vital market for the global luxury industry.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
