For the past five years, luxury companies have enjoyed dazzling growth by selling high-priced goods to China.
But the next five years are more likely to be all about selling high-priced experiences in the U.S.
While few companies will admit it, China's luxury market is quietly imploding. Luxury sales that were growing 20 percent or more a year are now expected to remain flat or grow just a few percent this year. And the problem is likely to get worse before it gets better.
China's economy is slowing, the government and media are cracking down on corruption and conspicuous consumption, and the once status-badge-obsessed Chinese consumers are getting a bit of logo fatigue when it comes to buying everything from wine to watches.
(Read more: Logo fatigue? Chinese now want understated luxury)
But the biggest problem is that China's rich consumers are vanishing, as many move overseas and take their money (and spending) with them.
The latest evidence comes buried in the earnings report from LVMH, the French luxury conglomerate that sells everything from Louis Vuitton and Fendi handbags and Emilio Pucci dresses and Dom Perignon champagne. Although worldwide sales grew a better-than-expected 7 percent, sales to China slowed to 5 percent in 2013, down from the 10 percent to 20 percent in previous years.
(Read more: A hard landing in China: The risks in one graphic)
CEO Bernard Arnault said simply, "Consumption of luxury goods has slowed down in China."