The latest big worry for world's top luxury labels

Chinese shoppers, among the biggest luxury clients, are not buying enough

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The luxury goods industry has relied heavily on China and North America for growth in recent years, but latest Chinese economic figures and a disappointing sales update from Cartier-owner Richemont suggest both markets may be starting to slow.

Major luxury brands have invested millions to reach new customers in the two markets, venturing beyond traditional highend shopping centres to open new stores in places like Wuhan and Zhengzhou, or Charlotte and Nashville.

A post-pandemic US splurge had already shown signs of flagging, leaving investors to pin their hopes on Chinese shoppers to sustain the months-long spending spree that has boosted the sector's fortunes. China's economy faltered in the second-quarter, however, prompting banks J.P.Morgan, Morgan Stanley and Citigroup to trim their growth forecasts for this year.