Luxury stock plumb as President Xi call to prioritise the “common prosperity” and regulatory intervention for “excessive high incomes”.
It is unique to China that Central government will take strong actions to regulate the markets that are seems “off-track” to achieve development goals.
To success in China, organizations will need to understand the “culture, value and power” differences in China vs other “free” markets.
While personal wealth, capitalism and freedom takes lead in democratic countries, China values societal prosperity, sustainable growth and harmony.
Luxury is here to stay in China, and the growth opportunity is enormous as long as you know where the Central Government’s bottom line lies.