Impact of Chinese Yuan devaluation on European luxury brands

During the week of August 11th, the Yuan was depreciated by 3% to 4% against US dollar.  This might impact Chinese consumption of luxury products in two ways: first, European imported luxury goods might become too expensive for the emerging middle class segment if the prices are not adjusted; second, the budget devoted to luxury goods by Chinese tourists in Europe might be depleted. Chinese clients represent up to 30% of worldwide sales for several European luxury brands.

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