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China recalls its communist roots: luxury falls on the stock market

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Is the Chinese Communist Party still a Communist? At the start of the summer, the whole world had the first start of a response from Xi Jinping. Indeed, on the occasion of the celebration of the 100 years of the party, the President of the People’s Republic of China (PRC), proudly dressed in the Chinese revolutionary costume (the famous “Mao costume”). declared unambiguously in front of 70,000 people gathered in Tian’anmen Square: “Only socialism could save China. Only socialism with Chinese characteristics has been able to develop China ”. A hammer and a sickle stood out conspicuously on his desk.

What looks like an ideological reframing does not surprise specialists of the eternal Chinese equation. Three years earlier, Xi Jinping had already affirmed with force, on the occasion of the celebration of the 200th anniversary of the birth of Karl Marx: “It is the sacred duty of all Chinese Communists to constantly develop Marxism.

»An affirmation in conformity with the history and the destiny of this country without measure, immense of weight from a geographical point of view, disproportionate from the point of view of climates, diverse from the point of view of the inhabitants: 56 officially counted nationalities and as many dialects.

A quarter of humanity rests on the fifteenth of the cultivable land in the world. It is understandable that, in this equation, the first task of a Chinese leader will be for a long time to come,

This call to order, which attests that China lives and will live for a long time to come with the faith in ideal communism, regularly shakes the markets, always astonished by the contradiction between the ideology of the party and the economic reality of an open country. since the 1980s to liberalization.

This is still the case today. It must be said that last Tuesday, at a meeting of the Central Committee for Financial and Economic Affairs of the Communist Party, the Chinese leader ordered that arrangements be made to “adjust excessive income” and “encourage groups and businesses. with high incomes to give back more to society ”.

Chinese consumers account for a third of global sales of European luxury stocks
This warning has been taken seriously, and rightly so, as it will surely set the tone for the months to come.

The market indeed remembers that at each CCP congress, the incentives to reinforce the ideological purity of the Party (with the well understood aim of galvanizing the legitimacy of power in the process) preceded reframing undermining the values ​​of luxury.

This was the case in 2017 for high-end watch exports. Once again, this announced return to “red roots” caused, Thursday afternoon, a very marked drop in prices for the luxury titans, causing the CAC 40 index to fall. LVMH fell 6.38 percent, Kering sank 9.47 percent, Hermès fell 4.69 percent. Since the start of the week, LVMH’s losses have risen to more than 13 percent,

The Chinese consumer represents, according to the investment bank JP Morgan, a third of global sales of European luxury stocks. This should continue to be the case, and even more so, given the Chinese consumer’s appetite for luxury goods.

The Party’s bloodshed has always been temporary, and the private sector has always succeeded in bending the government. It remains to be seen whether the new regulations (those to come and those already put in place through interventionism in the tech sector) on the part of Beijing, intended once again to strengthen the legitimacy and power of the Communist Party , will be a flash in the pan or the start of a long period of closure.

(Louis Vuitton) Credit: FashionUnited

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Allbirds Expands its range of Green Activewear

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Allbirds expands its range of green activewear

Renowned for its ecological products made from merino wool, Allbirds is launching new ranges of activewear for running and cycling.

Allbirds expands its range of green activewear

This first collection is unique in that it was designed in entirely natural materials while maintaining the same performance as technical products in synthetic fibers.

The New Zealand company has tested, and adopted, eucalyptus fiber mixed with its usual merino, for a silky and fine jersey. Clothing, leggings, and shorts retain the same qualities of breathability, thermoregulation, and quick-drying as “classic” sports clothing.

The line also displays its environmental footprint, measured from start to finish of the manufacturing process. With these new products, Allbirds wishes to go further in its ecological commitment.

The brand says it invests most of its resources in R & D in the development of fabrics offering alternatives to polyester and other materials derived from the oil industry. It aims to achieve 75 percent recycled and – or natural materials in its shoes and clothing by 2025.

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