Producers of luxury goods are in panic, as they are afraid that the demand on Western goods on behalf of Chinese buyers arriving to Europe to buy Louis Vuitton bag might fall, Bloomberg reports.

It shall be noted that about one third of Chinese consumers’ purchases of luxury brands is made abroad.

Stocks of global luxury producers already lost 11% or $150 billion of its value since the beginning of October.

One of fears that Chinese consumers will stop making purchases in Europe is based on the fact that Chinese customs started watching more tightly after goods entering the country. The current limit is $700 per person.

Last year buyers from China spent $121 billion on luxury goods. This is 32% of all global sales. This number can reach 40% by 2024.

It shall be noted that luxury brands usually set prices 60-80% higher on products sold in China. This is why businessmen from China often travelled to Paris to buy goods and resell them at home. Now the price range is getting smaller, as China reduced tariffs on import of such goods by two times this year. Now if there are problems with customs, the purchases will be made in China instead of Europe, experts assume.

But there is one more threat, which is slowdown in China’s economy that also can hit demand. Ermenegildo Zegna Group already reported slower sales in recent months. However, most luxury brands are more optimistic, as exclusive segment is less exposed to economic downturn.