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A Summary of

De-Globalizing Luxury

by
Byrne Hobart
The Diff
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Luxury…

  • Unlike the USA, luxury lines make up the top companies in Europe
  • The business depends on three things: growth (increasing the rich), consistent and predictable competition for status, a global scale (everyone is in the game together, not a few groups on their own)
  • Luxury companies build and stay in business by making sure their product elevates status
  • The market can be tricky if what is considered a status symbol changes
  • The luxury goods market in China is large
  • For Europe’s top luxury company, China is responsible for approx. 64% of “revenue growth in the last 5 years”
  • But the actual number is higher due to the amount of goods Chinese citizens buy during travel
  • Luxury lines are dependent on stability of the social status market
  • The CCP does not like competing with other power structures and often makes policies to regulate them.
  • This spells danger for luxury and would have a global effect.

“Elsewhere”…

  • A rumor about a SPAC merger produced such great stock price results that the companies made it real
  • Cloudfare created a storage war with Amazon after putting a competition storage product on the market with lower “egress fees”

“Net Present Value”…

  • Fanatics Inc., is an up-and-coming trading card company looking to be a full provider of all trading card services

FTC…

  • It seems the FTC could be using a strategy of simply being unavailable for acquisitions meetings
  • This would help cut administrative costs (and low return if a deal falls through) associated with an influx of acquisition requests
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