Wealthy Chinese are avoiding flaunting their wealth in favor of more discreet fashion, shows a report published Tuesday by consulting firm Bain, which expects the luxury market to experience its most significant bout of weakness since the COVID-19 pandemic.

Global sales of high-end products - clothing, accessories and beauty - should at worst stagnate or at best grow by 4% in 2024 compared to last year, predicts Bain in its semi-annual luxury report, which is closely followed by the sector.

This would be the slowest sales growth since 2020, when the sector was hit by confinements linked to the COVID-19 pandemic.

The slowdown is most marked in China, where uncertainty about the economic outlook is weighing on the middle class and prompting the more affluent to keep a low profile.

"For the first time in history, we have what is called luxury shame in China," said Federica Levato, partner at Bain, pointing to rising unemployment and the economic difficulties of many Chinese.

"The market is, without a doubt, in a phase of stagnation," added Federica Levato. "After two and a half years of growth, we're seeing a weariness with personal luxury goods."

This unfavorable context in China is causing the big names in the sector such as LVMH and Kering to suffer.

Hermès is the only one of the major listed luxury houses to have grown over the past year.

Instead of flocking to shopping malls, buyers are now going to private appointments and opting for more sober, discreet fashion, rather than "highly visible, flashy items", says Federica Levato, who predicts, however, that this trend, closely linked to a particular economic climate, may not last.

Signs of recovery have appeared in the USA, thanks to demand from wealthier customers, while younger, less affluent customers continue to delay their purchases.

In Europe and Japan, the return of foreign visitors has stimulated sales of luxury goods.

(Reporting by Mimosa Spencer and Elisa Anzolin; French version by Diana Mandiá, edited by Blandine Hénault)