The impact of the devaluation of the Renminbi on the European luxury sector seems to be under control. To say it is a relationship of Credit Suisse, according to which a 10% devaluation of the Chinese currency would correspond to a 4% contraction of the average earnings of the sector considered.
According to the report, among the big European luxury brands, the most sensitive to fluctuations in the renminbi would be Swatch e Ferragamo, for which a 10% devaluation of the yuan would lead to a 6% and 8% impact on profits, respectively. The more impermeable groups, on the other hand, would be, in order, Hugo Boss, Cucinelli and Hermes.
In any case, what emerges is the less vulnerability of European luxury sales forecasts compared to the Dragon, after the boom of the 2010-2012 period, even if 30% of sales in the sector is still attributable to Chinese demand. A demand, that of luxury goods, which, however, should not be affected too much by the movements of the currency.
The greatest impact on luxury goods would therefore be linked to reduction of the flow of Chinese tourists in Europe, a flow that had so far enjoyed a particularly advantageous price differential for Chinese travellers.
