Gucci loses shine in China as discounts and outlets erode brand

French group Kering falls behind luxury rivals in market cap with Asian sales slumping

20240619N Gucci

Gucci is struggling for momentum in the critical Chinese market as consumers focus more on ultrahigh-end or affordable products. © Reuters

MOE SAITO, Nikkei staff writer

TOKYO -- French luxury group Kering is getting squeezed as its flagship Gucci brand loses appeal among Chinese consumers, sinking its market capitalization to around one-sixth that of rival Hermes.

The Chinese market is becoming "polarized" between very high end and more affordable products, Chief Financial Officer Armelle Poulou said at an earnings conference in April.

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