Wuhan Virus Hits Global Luxury Stocks, investors spooked by Tourism and Retail downturn
Echoes of 2003's SARs crisis and China's mismanagement then are scaring investors away from luxury stocks as prices fell across the board on news that the Wuhan virus had spread to six other markets
The post Wuhan Virus Hits Global Luxury Stocks, investors spooked by Tourism and Retail downturn appeared first on LUXUO.
According to Bain consulting, a confluence of brand efforts to narrow the price gap in Chinese domestic markets coupled with the Chinese government?s efforts in reduction of import duties and stricter controls over grey markets – have led more Chinese consumers to make their luxury purchases in China, instead of traveling to regional shopping hubs: Hong Kong, Seoul, Tokyo or European cities. Chinese consumers made 27% of their luxury purchases in China in 2018, up from 23% in 2015, and this share is expected to increase to 50% by 2025. Globally, Chinese shoppers accounted for 90% of constant growth, contributing to 4% growth of the market in 2019, and now account for 35% of the value of luxury goods sold. But all the positives are seriously threatened by a new global crisis – a looming pandemic stemming from Wuhan, China.
Wuhan Virus Hits Global Luxury Stocks as investors spooked by Tourism and Retail downturn
As news of the coronavirus outbreak pointed to a trans-national emergency with cases reported in six other countries: Singapore, Thailand, Japan, South Korea, Taiwan, and the US, European luxury stocks fell on fears that retail repercussion...
The post Wuhan Virus Hits Global Luxury Stocks, investors spooked by Tourism and Retail downturn appeared first on LUXUO.
According to Bain consulting, a confluence of brand efforts to narrow the price gap in Chinese domestic markets coupled with the Chinese government?s efforts in reduction of import duties and stricter controls over grey markets – have led more Chinese consumers to make their luxury purchases in China, instead of traveling to regional shopping hubs: Hong Kong, Seoul, Tokyo or European cities. Chinese consumers made 27% of their luxury purchases in China in 2018, up from 23% in 2015, and this share is expected to increase to 50% by 2025. Globally, Chinese shoppers accounted for 90% of constant growth, contributing to 4% growth of the market in 2019, and now account for 35% of the value of luxury goods sold. But all the positives are seriously threatened by a new global crisis – a looming pandemic stemming from Wuhan, China.
Wuhan Virus Hits Global Luxury Stocks as investors spooked by Tourism and Retail downturn
As news of the coronavirus outbreak pointed to a trans-national emergency with cases reported in six other countries: Singapore, Thailand, Japan, South Korea, Taiwan, and the US, European luxury stocks fell on fears that retail repercussion...
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