Dire Straits for Luxury Brands

Hong Kong's luxury malls are looking pretty empty these days

The projections are that big spenders from the mainland won't be splashing the cash in Hong Kong, Paris, Milan and London anytime soon, as China's economy continues on its downward spiral.

Analysts say this year is not good, and aren't even holding their breath for next year either and it's hurting luxury brands in their stock value.

Tiffany & Co's Shanghai shop to halve its space

Burberry Group had its market value plunge 70 percent from the past year, causing the brand to lose its inclusion in London's FTSE 100 stock list. 

Gucci and Hugo Boss have also been hit hard, both losing half their value over the past year. Gucci is owned by Kering, which owns Moet Hennessy and Louis Vuitton, which was Europe's largest company by market cap a year ago, has fallen to second place.

To that end, Tiffany & Co owned by LVMH is looking to halve the size of its Shanghai flagship store, while high-end malls in Hong Kong are practically empty. 

Hermes is sitting pretty with Brunello Cucinelli

The only brands doing well are the ones catering to the uber rich -- Hermes International selling Kelly and Birkin bags, and Brunello Cucinelli with its cashmere sweaters. 

May they live long and prosper!