Chinese luxury spending is growing slower than expected. It has not yet returned to pre-Covid-19 levels. Footfall and sales in luxury malls are declining due to an oversupply of new malls and a faltering housing market. Bernstein predicts 6% growth in 2024 if the recovery continues, supported by new real estate measures. While mega-brands like Hermès and Louis Vuitton remain stable, Gucci, Burberry, and Ferragamo are struggling. Emerging domestic brands like Laopu and Songmont are gaining market share as consumers trade down.