And I have to say again that I'm really not a doomsayer or a crash prophet. It really is possible that everything will be fine again. But it is just as possible that the economy in our part of the world could go down the drain. The major European economies are not sending out good signals and, as interlinked as the companies are, this could turn into a general downward spiral. You really have to realize that the best companies in Europe (maybe with the exception of Ferrari $RACE ) are either YOY or YTD negative - and that's without any business mistakes being made. It's simply that European consumers have empty pockets and things aren't looking rosy in East Asia either. Politicians need to do more for the economy quickly than just lower interest rates. Tax relief and investment in education and infrastructure are needed, the sooner the better.
•
55
•
@Soprano is true, but I think that regardless of Europe, those companies that have a technological advantage and operate worldwide will still go their way. If products from $MC become more expensive or tariffs are introduced, this will not deter many people from buying them. They may even become even more attractive 😂 . Of course, demand will probably fall . The same applies to $ASML as the leading companies cannot afford to be at a technological disadvantage here. But you have to be careful when selecting companies .
••
@Soprano right, Europe needs a change, we need a strong economy, politicians need to stop losing time about nonsense and start taking care of the economy and try to atract big companies and more important to incentive to create new ones, mainly in the tech sector that are the more "efficient and profitable". They have to stop making regulations and to start de-regulating things. But with socialism is imposible to achieve that.
•
11
•@BamBamInvest I wouldn't be so sure about LVMH. Of course, customers will still be able to afford the products even with tariffs. The question is whether the products will still be in demand.
LVMH's luxury factor depends solely on the prestige of the French nation. You could make the same products in Senegal and earn a maximum of €20. France has fought hard for its reputation as a luxury country for decades. When you hear the words "shoes from Milan" or "shoes from Paris", you automatically think of really chic and expensive shoes, even though no mention is made of the fact that they are not rubber boots.
However, you can now see how this good reputation of Europe is getting worse and worse. There are many examples of this. It starts with soccer fans, who noticed for the first time on German trains during the European Championships that punctuality, cleanliness and safety are not always a priority here.
And it continues with viral trends such as "Dubai chocolate". 50 years ago, Switzerland was always the land of chocolate and nobody would have thought of paying €30 for a chocolate from a Gulf state. But now Dubai has established itself as a luxury country. It is quite possible that in a few years they will also be selling handbags for €3000 because Dubai will then stand for fashion and cosmetics and no longer Paris.
LVMH's luxury factor depends solely on the prestige of the French nation. You could make the same products in Senegal and earn a maximum of €20. France has fought hard for its reputation as a luxury country for decades. When you hear the words "shoes from Milan" or "shoes from Paris", you automatically think of really chic and expensive shoes, even though no mention is made of the fact that they are not rubber boots.
However, you can now see how this good reputation of Europe is getting worse and worse. There are many examples of this. It starts with soccer fans, who noticed for the first time on German trains during the European Championships that punctuality, cleanliness and safety are not always a priority here.
And it continues with viral trends such as "Dubai chocolate". 50 years ago, Switzerland was always the land of chocolate and nobody would have thought of paying €30 for a chocolate from a Gulf state. But now Dubai has established itself as a luxury country. It is quite possible that in a few years they will also be selling handbags for €3000 because Dubai will then stand for fashion and cosmetics and no longer Paris.
•
11
•@Soprano I don't think that the luxury factor of $MC depends solely on the prestige of the French nation. I don't know if you or your partner uses/owns LVMH products or if you've been in an LVMH store recently? But it's definitely not just to do with French prestige, the brand is extremely strong and in demand and the stores are always full. Of course it is questionable to call it luxury, as most products are now affordable for many people, but personally I am very convinced and it is not just a brand but an empire of brands and you will certainly continue to buy here ✌️
••
@BamBamInvest Have you ever been to a Turkish market? You can get all the LVMH products there too, and at much lower prices. Most of them look almost indistinguishable and the days when they were really junk that broke quickly are over. So it's neither the design, nor the material, nor the workmanship that makes LVMH unique.
Of course, people still run to the stores to buy the original products. I know that too. But why do they do that when they could just buy the fake without any disadvantages? Because the real products are made in France and not in Turkey.
Of course, people still run to the stores to buy the original products. I know that too. But why do they do that when they could just buy the fake without any disadvantages? Because the real products are made in France and not in Turkey.
••
@Soprano Yes, I was and some of them are really badly made and cannot be compared. Apart from that, I dare to doubt that those people who can afford it don't buy fake goods purely for reasons of prestige. But everyone is entitled to their own opinion and in my opinion it's more about the pattern, the tradition and the look itself than about France. You usually have the bags for eternity. I may be biased because I really like the products/bags. In any case, I'm convinced it doesn't have to be you 😁
••
@BamBamInvest I'm a bit at my wit's end now. In the second sentence, you say yourself that prestige is decisive, only to say one sentence later that prestige doesn't matter xD
Yes, I know you're referring more to the brands, but they're also based on the "Made in France" myth. Don't you think there's a reason why there are Kering and Hermes in France as well as LVMH, each of which has dozens of top brands?
Yes, I know you're referring more to the brands, but they're also based on the "Made in France" myth. Don't you think there's a reason why there are Kering and Hermes in France as well as LVMH, each of which has dozens of top brands?
•
11
•