The Advantages Of China'S Currency Devaluation Are Greater Than Disadvantages.

Since last year, currencies such as the US dollar, the euro, the yen and the Australian dollar have depreciated, making it cheaper for people holding renminbi to buy things overseas.

Buying some expensive watches or bags, the price difference between China and Europe and the United States even reached the level of "one package plus one round-trip air ticket", which greatly stimulated people to travel abroad for shopping.

Not only is it crazy to buy abroad, but it is also busy at home.

but

After that, things will change: foreign things are expensive, which will reduce people's desire to shop in a way.

The devaluation of the renminbi has also affected the nerves of luxury brands and luxury brands, and share prices have collapsed.

Bad news will make the financial statements unattractive first. The sales of the brand to the Chinese market will generally be converted into dollars and euros, and the same amount of value can only be exchanged for less US dollars and euros, which is equivalent to the decline in the sales volume of the Chinese market. Secondly, many big brands have been adjusting prices to reduce the price difference between the Chinese market and the European and American markets. In the case of devaluation of the renminbi, the price adjustment seems to be a bit of a waste of effort, and once again makes the financial statements ugly. Moreover, the depreciation of the renminbi will affect the overseas consumption and sea sales of some people in a certain extent. The sales of these brands in Europe and the United States will also be affected, which will directly affect the earnings data. Because for them, this

But this "bad news" is right.

It is "good news", especially for those OEM enterprises settled in US dollars. There are agencies predicting that the value of RMB will depreciate by 1%, and the sales profit margin of the textile and garment industry will increase by 2%-6%. This is undoubtedly a life-saving straw for Chinese clothing enterprises in the whirlpool of "boss running away", "closing down tide" and "downtime".

Along with the depreciation of the renminbi, there is also a wave of luxury goods in Hongkong.

In addition to this week's tieheya Hongkong Russell Street flagship store closed, earlier, Gucci, Burberry and other brands in some shops in Hongkong also reported business slump, more reports said that in order to retain these high-end tenants, many properties have reduced store rentals, but it seems that they can not resist the trend of luxury stores in Hongkong.

The "anti water passenger" and some discrimination against the mainland consumers have been a great blow to the enthusiasm of the mainland consumers to go to Hong Kong shopping, making the Hongkong market gradually depressed, and as the RMB devaluates, it can be foreseen that the "shopping paradise" will be affected again.

It has also been asserted that the status of China's "luxury savior" is coming to an end, and the sound of wasting luxury has also been heard.

In fact, it does not need to be so pessimistic.

Luxury stores in Hongkong are partly due to the market's "over saturation". In the 35 step, a shopping mall, the brand is everywhere and shops are set up everywhere, so as to make consumers buy more convenient. In fact, it is a great expense for Hongkong retail industry, which is mainly based on tourists.

Besides, luxury shopping focuses on "comfortable psychological enjoyment". When Hongkong is no longer able to provide "customers as God" and "buy luxury goods like shopping in the supermarket", the price difference is no longer so tempting.

With the depreciation of the renminbi,

In the mainland market, the gap between domestic and foreign prices has been further narrowed at the consumer level. I believe that more people who buy luxury goods are willing to "stay close to the market" and complete the purchase behavior in the mainland market. At the same time, it also stimulates luxury brands to give up the sluggish "sitting waiting for sending money" in previous years, and try their best to improve their products and services, which is not necessarily a bad thing for the long term development of the brand.

RMB devaluation, I think it is conducive to guide people to buy ideas, buy their own needs, reduce unnecessary waste.