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.

For further discussion, find out the opinion of experts on this question by reading the following articles:

http://fortune.com/2015/08/11/china-devaluation-luxury-sales/

http://www.lemonde.fr/economie/article/2015/08/28/les-grandes-marques-du-luxe-au-revelateur-de-la-crise-chinoise_4739181_3234.html

LV Shanghai