HSBC Sees Gradual Slowdown in Chinese Luxury Goods Spending

The video discusses the minimal impact of the trade war on the luxury sector, highlighting a disconnect between macro fears and micro realities. It explores the implications of a weakening yuan, noting a gradual slowdown in the sector's growth. The luxury sector has moved from complacency to greater creativity and improved consumer targeting. The weakening yuan has led to a repatriation of luxury consumption within China, making mainland stores more profitable.

What factors are contributing to the gradual slowdown in the luxury sector?

In what ways has the luxury sector improved its approach to consumers compared to three years ago?