Consumers Sector

[behappyalways]

Luxury Bust Worsens: Rolex, Patek Prices Hit Two-Year Lows
https://www.zerohedge.com/markets/luxur ... -year-lows

[behappyalways]

Does Stanley, a brand of American thermos cup, contain lead?
The industry clarification: there is no risk of leakage after sealing

美百年保溫杯品牌Stanley含鉛? 業者澄清:密封後無外洩之虞｜方念華｜FOCUS全球新聞 20240201@tvbsfocus

https://m.youtube.com/watch?v=OAU1l23HFZc

[behappyalways]

The Wall Street Journal cited court documents showing LVMH subsidiary Dior paid a supplier about $57 to assemble luxury handbags that sell for $2,780 in brick-and-mortar retail shops. Meanwhile, Giorgio Armani bags were sold to local suppliers for around $100, then resold to Armani for $270, and ultimately placed on retail store shelves for $1945 or more


Dior, Armani Under Investigation For "Made In Italy" Handbags Produced By Migrants
https://www.zerohedge.com/markets/dior- ... d-migrants

[winston]

World’s biggest luxury fortunes lose US$17 billion as market slows

the fortunes of a half-dozen ultra-rich who derive their wealth from pricey products made for pampering have dropped by 5 per cent this year, or about US$24 billion.

Source: Bloomberg

https://www.businesstimes.com.sg/intern ... rket-slows

[behappyalways]

The depreciation of the Japanese currency grabs bargains!
Tourists going to Japan to buy high-quality products have become a trend.
The performance of global high-quality products has declined but Japan bucked the trend and counterattacked with a surge

日幣貶值搶便宜! 觀光客赴日爆買精品成趨勢 全球精品業績下滑 唯獨日本逆勢反攻大漲｜記者 黃瓊慧｜【國際焦點】20240815｜三立新聞台

https://m.youtube.com/watch?v=cooLGMMMVNg

[behappyalways]

Grocery stores have razor-thin profit margins and people are talking about them price gouging
https://x.com/LynAldenContact/status/18 ... 1894134072

[winston]

China Consumer – Policy narratives turn more positive

On 24 September 2024, China introduced its first significant and coordinated monetary easing measures in years, which include reductions in the reserve requirement ratio (RRR) and interest rates, cuts to property-related mortgage rates and downpayment ratios, liquidity injections into the stock market (via swap/relending facilities) and efforts to strengthen bank capitalisation.

Attention is now focused on fiscal stimulus alongside monetary policies to drive demand (through consumption and investment), stabilise the property market, and address balance sheet issues.

On the consumer front, social security, healthcare and pro-birth measures are key areas of focus.

The MSCI China Consumer Staples and Consumer Discretionary indices rose around 40% and 33%, respectively, since 24 September 2024, before pulling back on 8 October 2024, following a National Development and Reform Commission (NDRC) press conference that disappointed markets.

Currently, China is experiencing a consumer downturn, marked by demand shocks and deflation, triggered by wealth destruction, historically low consumer confidence, weak business sentiment, sluggish job markets and wages, de-leveraging, and an aging population.

We continue to adopt a selective, bottom-up approach and prefer consumer names with:-
i) strong pricing power to defend margins in a deflationary environment;
ii) market share gains with healthy margins;
iii) value-focused consumer stocks that capitalise on the consumer downgrade trend; iv) overseas exposure given the bumpy domestic recovery in China;
v) earnings visibility with attractive dividend yield and;
vi) beneficiaries of policy tailwinds.

Some of our preferred picks under our coverage include Alibaba Group (BABA US/9988 HK), JD.com (JD US/9618 HK), Trip.com (9961 HK/TCOM US), Haier Smart Home (6690 HK/600690 CH), Midea Group (000333 CH), New Oriental Education (EDU US), Anta Sports Products (2020 HK), Uni-President China (220 HK), BYD.co (1211 HK), MINISO (MNSO US), China Mengniu Dairy (2319 HK) and Tsingtao Brewery (600600 CH).

Source: OCBC

[behappyalways]

Beauty Slowdown Hits L'Oreal As Sales Miss On China Consumer Woes
https://www.zerohedge.com/markets/beaut ... sumer-woes

[behappyalways]

Luxury Downturn Over? Richemont Delivers "Massive" Sales Beat, Send Shares Soaring
https://www.zerohedge.com/markets/luxur ... es-soaring

[winston]

These Boring Stocks Are Crushing the Market in 2025

by Chris Johnson

Consumer staples companies sell goods and services that remain in demand regardless of the economic cycle.

Think of food, beverages, personal care items, tobacco, and household necessities. Unlike discretionary purchases, which consumers cut back on during lean times, these products are bought no matter what—making staples companies uniquely resilient during downturns.

Consumer Staples Select Sector SPDR ETF (XLP)

Source: Money Morning

https://tradesoftheday.com/2025/05/01/t ... t-in-2025/