20231007

Chanel Increases Prices in China as Concerns About Luxury Demand Mount

Chanel increased prices of its high-end products in China in September, amid a slowdown in demand for luxury goods worldwide after the post-pandemic boom years.

Exclusive luxury brands are known to enjoy strong pricing power, meaning they can apply increases without necessarily losing customers. But in the past year there have been more signs that so-called aspirational customers buying entry-level products have curbed their spending.

EK: Targeting those who can afford and would buy despite the high pricing, a.k.a. the doormats for luxuries.

Virgin Galactic Carries Third Set of Tourists to Edge of Space

Virgin Galactic Holdings Inc. sent its third crew of paying tourists to the edge of space on Friday, as billionaire Richard Branson’s cosmic adventure firm extended its commercial flights for a third straight month.

EK: Branson, do something about the stock price.

Hong Kong Home Rented Out for $140,000 a Month Despite Market Downturn

An ultra-luxury residence in Hong Kong has been rented out for HK$1.1 million ($140,500) a month, a sign that some high-end transactions are still happening in the city during a broader property downturn.

While the price is lower than the record-breaking HK$1.35 million that the unit was previously rented for in 2021, it still ranks among the most expensive rental homes in one of the priciest property markets worldwide.

Hong Kong’s residential property market is in a prolonged downturn as high interest rates and macroeconomic woes deter buyers. The luxury segment has also suffered, with some owners of high-end properties having to sell at a steep discount compared with pre-pandemic times.

There are bright spots, however, as some buyers take advantage of the repricing of assets and the benefits of diversification, according to the Knight Frank global super-prime intelligence report published last month.

EK: Time for a buy