Core Viewpoint - The luxury goods industry is experiencing a transitional phase rather than a full recovery, with growth logic shifting from supply-side scarcity to demand-side structural changes, driven by recovering consumer confidence in China and a resurgence of aspirational consumer groups [4]. Group 1: Market Dynamics - The growth engines for the third quarter remain in the U.S. and Asia, with the U.S. market recovering due to the wealth effect from the stock market, while China's recovery is described as tentative [6][7]. - The disparity among brands is becoming more pronounced, with some brands like Prada indicating a plateau in the Chinese market, while LVMH reports moderate growth in local sales [6][7]. - The Chinese luxury market is showing signs of bottoming out, but the momentum for a strong recovery is still lacking [7]. Group 2: Middle-Class Consumer Dynamics - The past decade's growth in the luxury sector was largely driven by the expansion of the middle class, characterized by aspirational consumption [9]. - Economic pressures such as inflation and asset depreciation have led to a decline in middle-class consumer confidence, pushing them out of the primary consumption segment [9]. - However, there are subtle signals of recovery, as seen in Gucci's sales decline narrowing from 25% to 14%, indicating a potential re-engagement with middle-class consumers [9][10]. Group 3: Creative Resurgence - The luxury industry is undergoing an internal adjustment, recognizing that a return to creativity is essential for sustainable growth [12][13]. - Brands are moving away from short-term profit strategies that compromise cultural value, focusing instead on creative depth and emotional resonance [14]. - The market anticipates 2026 to be a pivotal year for luxury goods, with new product launches and a restructured pricing strategy expected to reignite consumer interest [15].