LVMH said that the growth of Chinese consumers in the third quarter of this year was basically flat, probably because the Chinese stock market crash in 7 and August led to a decline in consumer desire.

The negative wealth effect caused by the collapse of China's stock market has affected the growth of luxury goods business in recent years.

LVMH will reduce LV stores in second tier cities.

Guiony added that if two tier cities have two LV stores or consider closing some of their stores, LV is expected to be in the short term.

Will remain stable.

In the third quarter of this year, the group's Asian market performance also suffered, especially flagship brand LV, due to the impact of the stock market crash and the depreciation of the RMB against the US dollar by 3%, the luxury goods giant LVMH said at a conference call with investors.

It is the largest in the world.

The group has more than 70 luxury brands, including Louis Weedon (LV), Bvlgari (Bulgari), Fendi (Fendi) and Celine.

Among them, the fashion and leather Department of LV is the largest sales and profit contributor of LVMH, and its organic growth in the second quarter has reached 10%. However, the organic growth of the third quarter has slowed down by only 3%.

In a telephone conference with investors, the group's chief financial officer, Jean-Jacques Guiony, said that after the group gained a higher digit growth rate in the first six months of this year, the growth of its performance from Chinese consumers in the third quarter of this year was basically the same. It is evident that China's stock market crash in August and 7 affected consumer sentiment.

During the National Day golden week of from October 1st to 7th, the income contributed by Chinese consumers achieved a low two digit growth.

However, Guiony believes that the impact of the mainland stock market crash will not last too long, and business will soon return to normal.