The luxury sector should get ready for a slow down in global growth in 2016 and beyond; and should not rely on charging different prices in different regions to generate revenue, an analyst has told CNBC.
"There's been a shift. The luxury companies cannot charge significantly more in say China versus France, as they used to do only two, three years ago. Pricing has to converge, this basically means tighter margins," Nicla Di Palma, equity analyst at Brewin Dolphin, told CNBC in a TV interview Tuesday.
What's happened, Di Palma explains is that the luxury consumer has now become "a global consumer", therefore a Chinese consumer can go to France and South Korea to buy products, rather than purchase solely in their home market for luxury.