THE designer boutiques of Manhattan and Paris are feeling the chill of a Chinese economic slowdown that has hammered automakers and other industries.

That is jolting brands such as Louis Vuitton and Burberry that increasingly rely on Chinese customers who spend US$90 billion a year on jewelry, clothes and other high-end goods. The industry already is facing pressure to keep up as China’s big spenders, mainstays for American and European retailers, shift to buying more at the spreading networks of luxury outlets in their own country.

Last month, Tiffany & Co. showed how much well-heeled Chinese tourists matter to retailers abroad. Shares in the jeweler known for US$5,000 watches and US$400 silver baby spoons fell 12 percent after its CEO said they were spending less.

Forecasters including Euromonitor International and Bain & Co. say Chinese customers will be the luxury industry’s main growth engine over the next decade. But this year, shoppers are skittish amid cooling economic growth, trade tension with Washington and weak real estate and stock markets.

“Consumers are just not as excited about spending that kind of money right now,” said Ben Cavender of China Market Research Group.

Luxury spending abroad is forecast to keep rising, but not as fast as in China.

The share of spending that goes to retailers in China should rise from one-quarter of last year’s US$90 billion to half of 2025’s projected total of US$170-US$190 billion, according to a Bain report this month. Under that scenario, spending abroad would rise from US$67 billion to US$85-US$95 billion.(SD-Agencies)