Chinese shoppers are spending less on luxury.

Top European luxury groups have shed about $280.26 billion of market value this year as spending by Chinese consumers wilts and AI-driven stock market wobbles depress demand for high-end shoes and handbags.



Results from LVMH, Hermes and Gucci owner Kering this month all missed market expectations that had already been cut significantly, confirming fears that the luxury industry remains in the grip of a multiyear downturn.



Europe’s six largest listed luxury companies — which also include Richemont, Prada and Moncler — have collectively lost $81.5 billion of market value this year.



The declines have been steepest at LVMH and Hermes, the two largest luxury groups, whose market capitalisations have shrunk by $147.6 billion and $104.6 billion respectively.



Demand from shoppers in China was the industry’s motor of growth for over a decade but a prolonged property slump and weak stock market performance have undermined domestic demand over the past few years.



Monthly retail sales growth in the world’s second-largest economy has averaged less than 0.5 per cent over the past six months, a sharp slowdown on the previous year.