From Financial Times:
China’s attraction as a fast-growing market for luxury goods needs to be counterbalanced by its lack of suitable distribution channels and various economic and political threats, say industry experts at a luxury goods conference on Monday.
Stephen Roach, chief economist at Morgan Stanley , said one of the largest threats to the luxury goods sector could be the growing bipartisan consensus in Washington to impose trade sanctions on China. That could prompt a steep decline in the dollar and hurt fashion companies, many of which produce their goods in the eurozone.
There was a “gathering backlash against globalisation” especially in the US, Mr Roach told delegates at the FT Business of Luxury Summit in Venice. [Full text]