Sales at the 25 largest luxury brands in China fell more than 10% in July, marking a sharper decline than in June, according to data from three research firms cited by Bloomberg. This slump reflects the impact of China's recent campaign to tax offshore wealth, which has dampened spending among the country's wealthiest consumers and affected global luxury brands including Louis Vuitton, Dior, Gucci, Bottega Veneta, and Balenciaga.
The tax push targeting offshore wealth has created ripples across various sectors, from stock markets to casino floors, leading to a reduction in discretionary spending by affluent Chinese shoppers. Brands such as LVMH’s Louis Vuitton and Dior, along with Kering SA’s Gucci, Bottega Veneta, and Balenciaga, all reported double-digit sales declines in July. Hermès also experienced a downturn after previously strong performance earlier in the year, highlighting the broad impact of the policy.
This sales contraction in China is significant given the country's role as a major market for luxury goods globally. The decline contrasts with the strong growth luxury brands saw earlier in the year, underscoring how regulatory measures can swiftly alter consumer behavior. The luxury sector had been relying heavily on Chinese demand, making this downturn a critical development for global luxury companies and investors monitoring market dynamics.
The sales data for July, showing over a 10% drop among the top 25 luxury brands in China, was reported on August 22, 2026, by Bloomberg via livemint.com, providing a timely snapshot of the market impact from the offshore wealth tax campaign.