RT Bloomberg Opinion (@opinion)Chanel’s subway fashion show reveals something really interesting about the luxury market, @AndreaFelsted says 🎥 https://t.co/LZPqBG9Cfk ...

Over the past year, 1 in 3 condo owners in Manhattan who sold sold at a loss. Now, with the election of Mamdani, there are reports that the wealthy could flee even more, going to the suburbs or places like Florida or Texas. But the real reason why Manhattan real estate has been flat over the past decade, and what the wealthy are really doing is a bit more nuanced.I think prices got too high and they've had to come down. So of course people lost money. And you're reading about $100 million transactions, but ...

Market Opportunity - Western luxury merchants have a window of opportunity in China [1] Source - The information comes from @AndreaFelsted and @julianaliu via @opinion [1]

Market Trends - Chinese consumers are shifting away from traditional European and US luxury brands [1] - There's a growing preference for domestic premium brands with distinct Eastern aesthetics [1] - China's luxury market is valued at $49 billion [1]

Market Trends & Consumer Behavior - Spending on foreign premium brands in mainland China has started stalling, with the rise of local premium brands [1] - Chinese consumers are becoming more cautious and selective, seeking personal connection, wellness, and cultural relevance in their purchases [4] - Western luxury brands are adapting by stressing storytelling and experiential shopping, such as building multi-story megastores with retail, exhibition, food, and drinks [10] Competitive Landscape - Chinese premium brands offer experiential and cultural elements in their brand storytelling, attracting Chinese consumers [5] - These brands are positioned as cheaper alternatives to Western luxury brands while still providing good quality products [6] - LVMH's chairman was observed shopping for Chinese brands, indicating a shift in the market [9] Challenges & Uncertainties - The rapid growth of Chinese premium brands started from a relatively low base, making future growth uncertain [6][7] - China's weak economy, lacking expanding population and middle-class income, poses challenges for homegrown luxury brands [8]

Market Trends & Strategies - Louis Vuitton launched "Louie" in Shanghai to navigate China's shifting luxury market [1][2] - Major brands believe China has stabilized but remain cautious about the outlook, retreating to prime locations in major cities [3] Sales Performance - Louis Vuitton reported a 7% increase in China sales in the third quarter [2] Consumer Behavior - "Louie" has attracted hundreds of thousands of visitors since its opening in June, raising questions about their spending willingness [4]

Core Viewpoint - Tapestry, Inc. is experiencing positive sentiment from analysts, with Evercore ISI maintaining an "Outperform" rating and raising the price target, indicating confidence in the company's future performance [2][5]. Company Performance - Tapestry's stock price is currently $105.98, reflecting a decrease of $3.84 or -3.50% [3][5]. - The stock has shown significant volatility over the past year, with a high of $118.56 and a low of $47.22 [3]. - The company's market capitalization is approximately $22.06 billion, indicating a substantial presence in the luxury market [4][5]. - Today's trading volume for TPR is 1,063,241 shares, demonstrating active investor interest [4][5]. Analyst Ratings - Evercore ISI has raised Tapestry's price target from $125 to $129, reflecting improved confidence in the company's earnings prospects [2][5]. - Tapestry has received an upgrade to a Zacks Rank 2 (Buy), suggesting an optimistic outlook on its financial performance [2][5].

Company Positioning - Hermès has reached a unique position in the luxury market [1] - The company operates differently from the rest of the luxury industry [1] - Hermès has become one of the most valuable companies globally [1]

Industry Trend - The fashion industry is experiencing a talent shake-up [1] - The shake-up aims to revive the ailing luxury market [1]

Strategy & Transformation - The biggest challenge is making the pace of change coherent for everyone in the company, ensuring they can take change in digestible ways [1][21][22] - Chanel emphasizes a long-term mindset, focusing on sustainability and inclusion, viewing it as integral to the company's values for the last 100 years [27][30] - The company is committed to being an "island of coherence," leading with integrity and standing for the right things in the world [25][26] Business Performance & Investment - Chanel doubled its business to almost $20 billion in the three years before 2024, experiencing unprecedented growth [39] - Despite a 4% revenue decrease last year, Chanel continues to invest record amounts in retail expansion and client experience, with similar investments planned for this year and 2025 [34][35] - In 2024, Chanel invested $1.8 billion in retail expansion [34] Market Dynamics & Expansion - The personal goods luxury market is a huge sector, greater than $400 billion today, and tripled in size in the last 20 years [35] - Luxury sector experienced explosive growth between 2019 and 2023, growing more than 30% [36] - China is a very important market for Chanel, with over 127 boutiques and continued investment in new openings and client engagement [41][42][43] Sustainability & Social Impact - Chanel is one of the luxury brands that have set a commitment for net zero by 2040 [29] - The company is setting up a B2P hub to encourage recycling and upcycling of leather, Kashmir, wool, and silk for the entire sector [29] - Chanel's corporate foundation dedicates $125 million a year to 267 partners in 50 countries, impacting 9 to 10 million women and girls annually [28] Diversity & Inclusion - Women make up 76% of Chanel's workforce and 96% of its clients, with 60% of the top team being women [28]