Norsa: Trump Would Not Want to Hurt Consumption

The video discusses the impact of tariffs and trade tensions on the luxury goods industry, focusing on the challenges faced by CEOs in managing supply chains. It highlights the role of the US and China in the luxury market, the effects of currency fluctuations, and the resilience of luxury markets in emerging economies. The video also explores consumer behavior, particularly among Chinese consumers, and the potential for increased local consumption in China.

What is a significant challenge for the luxury industry in the United States?

• Increased duties and tariffs

• Lack of skilled labor

• Limited consumer base

• High production costs

What is a potential consequence of increased duties on luxury goods in the US?

• A repositioning of prices globally

• An increase in local manufacturing

• A shift in production to the US

• A decrease in global luxury prices

Why might luxury companies consider moving their supply chains to countries like the UK?

• To access better technology

• To establish a special relationship with the US

• To avoid environmental regulations

• To reduce labor costs

How does the devaluation of the yuan affect luxury goods pricing?

• It increases local prices in China

• It stabilizes currency exchange rates

• It decreases global demand

• It reduces profit margins

What strategy might luxury companies use to mitigate the impact of currency fluctuations?

• Increase local production

• Reduce product quality

• Focus on emerging markets

• Adjust global pricing strategies

What is a key factor driving the resilience of the luxury market in emerging markets?

• Government subsidies for luxury goods

• Wealthy consumers unaffected by economic changes

• Stable political environment

• High import tariffs

How do Chinese consumers typically approach luxury purchases?

• They prefer to buy locally due to lower prices

• They travel abroad to purchase specific products

• They rely on online shopping for convenience

• They avoid luxury goods due to high tariffs