×
50
Fashion Jobs
SHISEIDO
Singapore - Marketing Executive, Shiseido
Permanent · Singapore
SHISEIDO
Singapore - Marketing Manager, Fragrance
Permanent · Singapore
ESTÉE LAUDER
Marketing Executive, Estee Lauder, Travel Retail Apac
Permanent · Singapore
SHISEIDO
Marketing Executive, Laura Mercier
Permanent · Singapore
SHISEIDO
Singapore - Training Manager, Shiseido
Permanent · Singapore
SHISEIDO
Travel Retail - Brand Manager, Anessa & Elixir
Permanent · Singapore
SHISEIDO
Singapore - Marketing Manager, Shiseido
Permanent · Singapore
ESTÉE LAUDER
Marketing Manager, Origins, Aveda, Lab Series, Adf, Travel Retail Apac
Permanent · Singapore
LEVI'S
B2B Ecommerce Coordinator
Permanent · Singapore
LEVI'S
HR Operations Specialist
Permanent · Singapore
ESTÉE LAUDER
Manager, Integrated Marketing, Travel Retail Apac
Permanent · Singapore
LEVI'S
Digital Selling Operations Manager
Permanent · Singapore
ESTÉE LAUDER
Marketing Executive, la Mer, Travel Retail Apac
Permanent · Singapore
ESTÉE LAUDER
Assistant Marketing Manager, Mac, Travel Retail Apac
Permanent · Singapore
SHISEIDO
Singapore - Marketing Manager, Nars
Permanent · Singapore
SHISEIDO
Singapore - General Manager, Prestige Division
Permanent · Singapore
SHISEIDO
Asia Pacific - Regional Marketing Manager, Shiseido
Permanent · Singapore
LEVI'S
Regional Total Rewards Manager
Permanent · Singapore
L'OREAL GROUP
Regional E-Commerce Business Data Analyst
Permanent · Singapore
L'OREAL GROUP
Business Development Manager - l'Oreal International Distribution (Lid)
Permanent · Singapore
SHISEIDO
Travel Retail - Retail Design Senior Executive
Permanent · Singapore
SHISEIDO
Travel Retail - Brand Assistant Manager, Shiseido
Permanent · Singapore
Translated by
Nicola Mira
Published
Aug 26, 2021
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Luxury industry: China reshuffles the deck

Translated by
Nicola Mira
Published
Aug 26, 2021

News from China rudely jolted the stock market value of leading luxury groups last week, though most labels and major groups seem to be slowly recovering from the share price plunge. But threats are still looming. While on Monday Kering bounced back by 2.96%, LVMH by 2.68% and Hermès by 3%, at close of trading on Tuesday the majority of luxury labels were down by between 1% and 2%.


Dior showed its Fall 2021 pre-collection in Shanghai last April - Christian Dior


The Chinese government’s announcement of a national wealth redistribution plan sparked grave concerns. Fearing a rise in income tax for the wealthiest Chinese, the world's pre-eminent luxury consumers, investors reacted promptly, causing the luxury sector's share prices to plummet on the main stock exchanges. In just a few days, valuations for the leading listed groups dropped by nearly 13%, losing tens of billions of euro in market capitalisation.

A slump that must however be assessed in the context of high valuation growth in the recent past. As many analysts pointed out, the sector has performed very strongly in recent months, driven by the record quarterly recovery of some groups, whose valuations soared by up to nearly 40% in some cases. Moreover, forecasts remain positive for the end of 2021 and for 2022, thanks in part to the US market’s rebound.

In a report released on Tuesday, Bernstein’s analysts nonetheless underlined how for the luxury industry “the risks are no longer related to the repatriation of Chinese expenditure, but rather to policy changes in China.”

They further explained that “Chinese demand for luxury [goods] could crash down hard due to new policies on wealth and taxation, new, nationalistic consumer behaviour, and international trade tensions in which the luxury sector might be caught up, etc.” Bernstein argued that “this scenario seems unlikely at the moment, while companies continue to view China as an opportunity rather than a problem.”

However, Beijing’s policy decisions, combined with the current economic slowdown in China and the upsurge in Covid cases in the country could hamper the striking recovery that the luxury industry staged at the beginning of 2021. This is enough to dampen the enthusiasm for a future that remains more uncertain than ever. Especially for those brands that rely most heavily on Asia, including luxury labels and groups like Hermès, Burberry, Richemont, Prada, Kering and LVMH.

Copyright © 2021 FashionNetwork.com All rights reserved.