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Deutsche Bank in-depth analysis: When will the luxury goods industry recover?
According to Daiwa Securities, after the surge in sales following the epidemic, the profit margin of the luxury goods industry is likely to decline to an even lower level. Valuations are also further decreasing, and revenue growth may be lower than the growth rate of operating expenses. Low-priced products become crucial, and various brands may have to increase the number of entry-level products in the coming months to expand sales. The decrease in price combinations and the increase in product pricing may offset each other.
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