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Luxury market growth expected to tilt towards the US

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Keystone/Peter Schneider

The luxury goods industry continues to be confronted with weak demand in the Chinese market.

In the recent past, the Chinese market has been the industry’s strongest growth driver, according to a UBS study published on Monday. However, with the continuing uncertainties in the key growth market of China, the focus in the coming year will now increasingly be on the United States, where the favourable stock market performance and decreasing political uncertainty should stimulate demand.

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UBS experts are forecasting mid-single-digit percentage growth for the sector in the United States in the coming year. The main drivers will be the jewellery business and high-priced watches, the analysts say. Luxury watches such as Rolex or Patek Philippe are increasingly valued by wealthy consumers as an investment. Swiss luxury group Richemont therefore remains one of the favourites among companies.

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However, the study also identifies risk factors for Swiss companies in the US: for example, possible US tariffs on European imports could be passed on to consumers, which could push up the prices of luxury products.

Adapted from German by DeepL/ac

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