Luxury market in China faces significant sales decline due to tax policies impacting wealthy consumers

Global luxury brands in China are encountering a substantial downturn in sales as the country’s taxation policies affecting offshore wealth reverberate through various sectors. Major luxury labels in China experienced over a 10% decrease in sales in July, as reported by multiple research firms surveyed by Bloomberg. This decline was harsher than the slowdown witnessed in June and marked a notable reversal from the strong performance earlier in 2026. Luxury giants like LVMH’s Louis Vuitton and Dior, as well as Kering’s Gucci, Bottega Veneta, and Balenciaga, saw double-digit drops in sales. There was also a shift for Hermes from gains…