Lastra said a key difference between technology and luxury is “the longevity of the trend.” Parts of the customer base might be new, but the brands are generally old in luxury - and therefore protected, making the companies all the more attractive to investors. “Generally global wealth keeps rising and we see it in all the segments of the consumer goods industry,” he said. That makes for less volatility overall in the profile of luxury shoppers, who have ridden what Lastra described as a “tremendous secular trend.” “In China, a lot of it has to do with real estate.” “If you think about how wealth portfolios of wealthy Chinese people are structured, it’s very different to how American portfolios are structured,” Lastra said. is slowing…and a lot of that is being compensated by Chinese reopening.” Javier Lastra, fund manager of Lux, said: “The common message from all the companies is that the U.S. “If you think about luxury ultimately as the aspirational ladder of consumerism, then people can enter the ladder at different points and there’s more entry points for the luxury consumer at both the low end but also at the higher end,” he said.Ī more global customer base also provides some cushion for the companies. “First-time customers are younger, they can participate easier, they can participate quicker and ultimately the category is becoming more accessible financially. “What makes luxury so resilient today is geographic diversification, but also demographic diversification,” said Maurits Pot, chief executive officer and founder of Tema. might not be enough anymore to make the luxury shopper wince. It’s a consumer cohort that is relatively small in numbers, but big in spending and has been growing stronger and more resistant to the kind of shocks that caused the industry to slow down in the past.Ī stock market crash in the U.S. Some of those companies make products mere mortals can buy, but the idea hew closer to the spending of the “if-you-have-to-ask, it’s-too-expensive” crowd. The ETF launched this month under the “LUX” ticker and lets traders take a stake in a group of stocks at once, including LVMH and Hermès, but also Ferrari, spirit makers Pernod Ricard and Kweichow Moutai Co., beauty giant L’Oréal and more.
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