China's $49 billion luxury market is shifting amid a prolonged economic slump. Spending on foreign premium brands like LVMH and Gucci is stalling, while consumers turn to homegrown labels such as Laopu Gold, Songmont, and Mao Geping.

Beijing

Foreign luxury brands such as LVMH and Gucci are experiencing stalled growth in China’s $49 billion luxury market, as local premium brands including Lao Pu Gold, Songmont, and Mao Ge Ping rise in popularity. Economic factors like slumping property prices and high youth unemployment have made Chinese consumers more cautious, leading them to seek personal and cultural connections with their purchases.

Chinese premium brands are appealing due to their lower prices and strong brand storytelling, while Western brands are responding by enhancing experiential shopping and building larger, multi-purpose stores. However, uncertainty remains about the sustainability of local brands' rapid growth given China's broader economic challenges.

Why Chinese consumers are turning away from LVMH, Gucci

Let's talk about luxury. Why not? Some of these foreign brands like LVMH, I have to move over, right? Things are changing in the whole $49 billion luxury market. With spending on foreign premium brands, they've actually started stalling in the mainland and really the rise of these sort of local premium brands, right? Have you ever heard of the likes of, well, Lao Pu Gold, we talk about that quite a bit here, Songmont, Mao Ge Ping. I actually had to look it up a little bit too, some of these brands. Let's bring in Shirley Zhao, our conglomerates and consumer. I guess David has no idea what we're talking about. Hang on. You haven't been to the latest renovation at the Inglis household. Oh, Mao Ge Ping, all over your face. All over. If you think the Oval Office is draped in bling, you should come to my living room. It's all Lao Pu. Yeah, there we go. Anyway, Shirley. Let's talk to Shirley. Tell the rise in these Chinese premium brands, why do you think they've grown so rapidly? So the rapid rise of these Chinese homegrown premium brands coincides with China's economic slowdown. So amid a slumping property prices and very high youth unemployment rate, a lot of Chinese consumers are now becoming more cautious and selective when it comes to shopping, especially luxury shopping. So they are now looking for personal connection on personal wellness and experience, and they are seeking connection on the sort of cultural level with the stuff that they buy. And Chinese premium brands have done much better in providing this experiential and cultural element in their brand storytelling. And that's attracted a lot of Chinese consumers. And also these Chinese premium brands, on the pricing level, they're not as expensive as a lot of Western luxury brands, but they're still having this premium price tag. And for a lot of Chinese consumers, they see these Chinese brands as a sort of cheaper alternative to Western luxury brands, but still they provide good quality products. Yeah. So not as luxury. I mean, just looking at the price point then. So what challenges, if they nail the messaging and sort of the identity part of it, what challenges remain here? So a big part of their success is that they started off at a relatively low base. So it's relatively easy for you to grow to 20 or 30, starting from 10. But if you want to grow further, there are a lot of uncertainties. So whether this kind of rapid growth is sustainable, it remains to be seen. And also China's economy remains weak. And for luxury brands to really grow, it needs a growth economy and it needs an expanding population and income for the middle class. And these elements are lacking in China nowadays. So all these uncertainties have become challenges for homegrown Chinese luxury brands. I love your story that mentioned about Bernard Arnault when he last went to China. He's the chairman of LVMH. Come on. It wasn't like he was looking at his own brands. He went shopping in Chinese brands, according to your reporting. I thought it was quite telling. What sort of the message, I think, does this rise of local premium brands, what's the message to some of these big foreign brands out there now and how to really survive or at least compete in China? So a lot of Western luxury brands are nowadays really stressing storytelling and providing experiential shopping for Chinese consumers. They have captured this change in consumer shopping behaviour in China. So, for example, LVMH is right now building a lot of multi-storey mega stores featuring not just retail elements, but as well as exhibition, food and drinks. There's that big ship, right? Yes, the Louis in Shanghai. And a lot of other Western luxury brands are doing this right now. So in the past, you can see them having small street front stores and that did very well. And a lot of people queued up outside. But nowadays, it's like stores occupying an entire building and providing a lot more just than the retail element. And these are what the luxury brands are doing in China right now. And they are hoping by doing these, they can build this personal connection with Chinese consumers. Not just shops, but buildings, Dave. You've got to do it. You've got to spend a lot of time in there. It's not just the champagne. It used to be just, I'm going in so I can have the glass of champagne. No. It's everything else. It's a whole experience. All right, Shirley, it was a great story. Thank you so much. I'll try it sometime. Our conglomerates and consumer reporter.

Chile heads to a December runoff after Sunday's presidential vote left no clear winner. Leftist Jeannette Jara and far-right José Antonio Kast will now face off in a race dominated by concerns over crime and migration.

Santiago

Chile leftists advance to next month's presidential runoff

Construction work of a concrete wall continued on the Israeli side of southern border with Lebanon, despite the Lebanese presidency's threat to complain to the U.N. Security Council over the wall's extension into Lebanese territory.

Tel Aviv-Yafo

Middle East Conflict

Israel constructs wall along Lebanon border

Venezuelan President Nicolas Maduro slammed planned joint military exercises by the United States and its ally Trinidad and Tobago as "irresponsible," with Washington increasing its armed presence in the Caribbean.

Caracas

Maduro denounces US military exercises

Despite U.S. President Donald Trump's repeated attempts to kill the effort to release federal files related to Jeffrey Epstein, House Republican leaders are planning to hold a vote this week on legislation to force the issue.

Washington

Claims Epstein emails mentioning Trump were 'selectively leaked'

President Trump says he has "sort of made up my mind" on whether to take military action in Venezuela. The comments come as America's largest aircraft carrier, the Ford, and other U.S. forces move within striking distance of the country. Charlie D'Agata has new details.

Trump says he's "sort of made up my mind" on Venezuela military action

President Trump says he will no longer support onetime close ally and Georgia congresswoman Marjorie Taylor Greene amid the ongoing fallout over the Epstein files. Willie James Inman reports.

Marjorie Taylor Greene 'threatened' by Trump supporters amid Epstein fallout

Flash flood warnings expanded on Saturday as rain hit wide swaths of California amid fears that the atmospheric river will intensify. Andres Gutierrez has the latest details.

Pacific Palisades

Rainstorm pummels California, triggering flash flood warnings

Large-scale protests at COP30 in Belém, Brazil, have drawn attention to environmental concerns and the preservation of the Amazon rainforest. Inside the summit, negotiations have been complicated by the absence of the United States.

Belém

Protesters block entrance to COP30 climate talks in Brazil

The UN climate talks in Brazil are facing increasing disruption from protesters. Thousands joined the "Great People's March" outside the conference venue to demand action on global warming instead of empty promises.

Thousands join protest at COP30 climate talks in Brazil

Air travel and other government services, including SNAP benefits, are returning to normal following the end of the longest shutdown in U.S. history.

Los Angeles International Airport

Flights begin to get back on track as shutdown ends

The U.S. military is expanding operations in the Caribbean and Puerto Rico amid its deadly boat strikes on alleged drug-smuggling boats, while the Trump administration weighs military action against Venezuela.

Trump administration weighs U.S military action in Venezuela

U.S. Secretary of Defense Pete Hegseth announced "Operation Southern Spear" in the Western Hemisphere as U.S. strikes continue in the region near Colombia and Venezuela. CBS News' Eleanor Watson reports.

Hegseth announces 'Operation Southern Spear'

The U.S. has approved the sale of $330 million worth of weapons to Taiwan as tensions rise in the region with China. CBS News' Nancy Cordes reports.

Taipei City

U.S. approves massive sale of weapons to Taiwan

Jeff Bezos's Blue Origin successfully launched its New Glenn rocket on Thursday with NASA twin spacecraft destined for Mars aboard, and in a breakthrough nailed the landing of its booster.

Cape Canaveral

Blue Origin's New Glenn rocket deploys Mars satellites

A three-person crew stranded at China’s space station after their spacecraft was apparently hit by space debris are to return Friday using the craft that brought their replacement crew.

Chinese astronauts return to earth after spacecraft damaged

The AI firm Anthropic says Chinese hackers used its artificial intelligence tools to spy on tech companies, financial institutions and government agencies in what it believes is the first documented case of a worldwide cyberattack with minimal human involvement.

Rise of AI

Anthropic says Chinese hackers used its AI chatbot in cyberattack

Senior U.S. military officials have presented President Donald Trump with options for potential military operations inside Venezuela, including strikes on land, sources tell CBS News. Charlie D'Agata reports.

Trump weighs military plans against Venezuela

U.S. President Donald Trump is ducking press questions about newly released emails connecting him to convicted sex offender Jeffrey Epstein’s criminal activities ahead of an expected vote on releasing all Epstein case files by the U.S. House of Representatives as early as next week.

Trump avoids media’s Epstein email questions

The U.S. government lumbered back to life on Thursday (November 13) after the longest shutdown in U.S. history snarled air traffic, cut food assistance to low-income Americans and forced more than 1 million workers to go unpaid for more than a month. But the deep political divisions that caused the 43-day shutdown in the first place remain unresolved.

U.S. government opens up again but deep political divisions remain

China's factory output and retail sales grew at their weakest pace in over a year in October, piling pressure on policymakers to revamp the $19 trillion export-driven economy as mounting supply and demand strains threaten to further curtail growth.

China's factory output, retail sales growth worst in over a year

Germany's government plans to bring back military service, to boost troop numbers to deal with the perceived threat from Russia. But voluntary conscription could become compulsory, if not enough recruits come forward.

Berlin

Germany outlines potential shift to compulsory conscription

As F-35 stealth fighter jets fly missions from a reopened naval base in Puerto Rico and Marines practice beach landings, sources tell CBS News the Pentagon is preparing for possible military action in Venezuela. Charlie D'Agata reports.

Pentagon preparing for possible military action in Venezuela

President Trump's name appears hundreds of times in the newly-released batch of 23,000 pages of records and messages from convicted sex offender Jeffrey Epstein, raising questions about their relationship. Mr. Trump has repeatedly denied any wrongdoing and has called the scandal a "hoax" perpetrated by Democrats.

Trump named hundreds of times in newly released Epstein files

A federal judge has ruled that hundreds of people detained by Immigration and Customs Enforcement during "Operation Midway Blitz" in the Chicago area must be released. CBS News immigration and politics reporter Camilo Montoya-Galvez has more.

Chicago

Judge finds ICE illegally arrested hundreds of people in Chicago

For the first time in six weeks, the U.S. government is open. President Trump signed a bill last night to fund the government through the end of January.

Trump says he is 'willing to work with anyone' on health care

U.S. forces have killed four people in the latest strike on an alleged drug boat in the Caribbean. CBS News national security coordinating producer James LaPorta has more.

U.S. forces kill four in latest Caribbean drug boat strike

Israeli settlers set fire to a mosque in the West Bank on Thursday (November 13) and sprayed racist slogans on its walls, Palestinian residents said.

Jerusalem

Israeli settlers torch mosque in West Bank, residents say

Thailand-Cambodia border tensions escalate days after a US-backed ceasefire agreement breaks down.

Bangkok

Thailand-Cambodia tensions escalate as truce hangs in the balance

A bipartisan group of lawmakers is one step closer to the full release of the Justice Department's documents on Jeffrey Epstein after securing the final signature needed to force a House vote. Scott MacFarlane reports.

Breakdown