Luxury brands such as Hermes and Rolex have been strong on their product quality and value holdings. Most of their products are handmade in the day of age where everything is machine made. Their prices go up each year in order to keep themselves as prestigious brands.
However, due to the recent economic recession in China, one of the world’s largest luxury buyers, things do not look good for all luxury houses. Imagine buying a Birkin bag only for it to lose ⅕ of its value. That is what’s happening today.
Second hand Rolex watches have lost about 40% of their value as well. Luxury specialists in China according to the SCMP stated that we have entered the correction stage for the luxury world. Sadly, it might be a long phase.
