The ongoing trade war with the U.S. is hitting Chinese consumers psychologically, causing a slowdown for luxury goods in the second half of the year, said Italian menswear maker Ermenegildo Zegna Group.
“In the past few months, I would say there has been a slowing down of consumption, and probably the consumer is becoming more careful in what he or she does,” Chief Executive Officer Ermenegildo Zegna said in an interview in Shanghai.
In response to that, the family-run luxury suit brand is turning cautious and is planning a more conservative budget for investment in China next year, he said Sunday. Though China is among its biggest markets, it will not expand store count much, he said.