(IDEX Online) - Luxury brands have cut their forecasts for growth in China from 18 to per cent to just three per cent, as Covid lockdowns continue to shatter consumer confidence.
Management consultants Oliver Wyman published their findings based on interviews with clients representing more than $50bn in retail sales of premium consumer and luxury goods in the country.
"There is a huge doubt about whether the consumer confidence can recover quickly, as in 2020 and 2021," said Oliver Wyman principal Kenneth Chow, citing China's zero-tolerance lockdowns, soaring unemployment (almost seven per cent in large cities), job insecurity and consumer anxiety. He said only a few months ago the same clients were forecasting 18 per cent growth.
China's watch and jewelry market is the world's biggest by far - $111bn in 2020 compared with second-placed USA on $62bn.
Shanghai, with a population of over 24m, lifted its two-month lockdown on 1 June, but residents remain fearful that any new cases will mean restrictions are reimposed.
Pic shows Shanghai entering its latest Covid lockdown