US instability impacts global luxury markets: Report

Diving briefs:

According to a March HSBC white paper valuing the luxury market, US instability is negatively affecting the world’s luxury sector.
The report cited multiple issues including Recent US tariff reversal Canada and Mexico, and “uncertainty around Europe.” The total impact was “not likely to help businesses project their future investments and consumers easily to gain confidence.”
Meanwhile, the report said there could be a rise in the sector in China and that losses in luxury market share could have a positive impact on sports goods.

Dive Insights:

The HSBC report will come at that time The luxury sector is struggling In response to slowdown with companies including LVMH and Hugo Boss Posts about the slump in 2024.

The results of US geopolitical, economic and market news are: an analyst led by Erwan Rambourg, global head of consumer and retail research at HSBC, said:

The report states that European talks, like European recontracts and weak US dollars, were “clear negative for the luxury sector” as they produce products around the world. As a result, the author highlighted three major areas of concern.

First, the author of the report said there is no unlikely to be a US dollar, and that the euro would reach equal value in the near future and would affect the luxury exports of Europe.

Second, markets that include equity and cryptocurrency “have been down sharply since Valentine’s Day,” according to a report that added that “401K retirement accounts for US consumers haven’t seen much love recently.”

Third, the author of the report said, “not only because consumers are wealthy, but also because they are confident about their future outlook. Therefore, “many conformities and initiations” have resulted in “unexpected changes in relations with the US with Ukraine, Russia, NATO, etc.” that, according to the report, directly affects the luxury demand.

“All three points are sure to put pressure on gorgeous consumer psychology, even if we haven’t yet received comments about worsening demand from US consumers,” the author of the report said.

However, the author of the report said that while stock markets in the US fell sharply in early March, “they are still rising significantly in a year, two or five years’ view.”

Analysts also said they still see growth potential in the US luxury market.

“(a) The recent return of ambitious consumers may be somewhat of a hindrance, but we continue to believe in the brand’s ability to adopt in the market through better products,” including the recent revival of Louis Vuitton’s Murakami collaboration and an expanded footprint.

Regarding the potential rise in China, the report said it was “encouraged by recent stock market pickups.” They added that it points to “more business attitudes from the Chinese administration and conversations with high-class local managers.”