Luxury, Redefined.
When I visited the Loro Piana boutique at Marina Bay Sands in Singapore, the retail assistant brought over a polo t-shirt made of wool he thought I might fancy. It didn’t look like much. It was ...
投資總監辦公室 - 香港1 Feb 2024
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Photo credit: AFP Photo

When I visited the Loro Piana boutique at Marina Bay Sands in Singapore, the retail assistant brought over a polo t-shirt made of wool he thought I might fancy. It didn’t look like much. It was dark blue, had no logo, sported a collar, and had three buttons running down the centre – the hallmarks of a regular polo t-shirt.“Touch it, have a feel,” he urged. I did. It was soft,supple, and held together by very fine, evenly spacedstitches. It retails for SGD3,720 (USD2,750).Such is the allure of quiet luxury, where the art ofthe understatement is channelled through fine (insome instances, rare) materials and exceptionalcraftsmanship. Gone are the days of loud logos.Against a backdrop of widening social disparity,stealth wealth appears to be in vogue.This new age of luxury goes beyond the realm offashion and reflects a broader shift in consumervalues across segments such as perfumery, horology,and gastronomy. Companies that are well positionedto capitalise on this trend stand to gain.As it is, our findings in this report show thatcompanies such as Hermès and LVMH MoëtHennessy Louis Vuitton command some ofthe highest operating margins in the industry,surpassing even that of US Tech companies.According to WatchCharts, horology behemothRolex witnessed a 11.5% y/y decrease in the pricesof its watches in 3Q23. In contrast, considerably lessmainstream names such as Breguet, Blancpain, andJaeger-LeCoultre – renowned for their sleek designsand mechanical excellence – achieved a subtle yetnotable upturn in secondary market prices.The intriguing shifts in the market for timepiecesprompt a closer examination of the dynamics withinleading luxury conglomerates like CompagnieFinancière Richemont and Swatch Group, both ofwhich navigate the evolving landscape of the luxuryindustry with a diversified portfolio of brands.While I won’t be padding my wardrobe with a LoroPiana polo t-shirt anytime soon, I will be keeping myinvestment portfolio open to luxury brands that prizeexclusivity, craftsmanship, and discreet branding.Enjoy the read as we take you through why quiet isthe new loud.

Hou Wey Fook, CFA Chief Investment Officer

Download the PDF to read the report.



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若散佈或使用本資訊違反任何司法轄區或國家/地區的法律或法規,則本資訊不得為任何人或實體在該司法轄區或國家/地區散佈或使用。本資訊由 (a) 星展銀行集團公司在新加坡;(b) 星展銀行(中國)有限公司在中國大陸;(c) 星展銀行(香港)有限責任公司在中國香港[DBS CY1] ;(d) 星展(台灣)商業銀行股份有限公司在台灣;(e) PT DBS Indonesia 在印尼;以及 (f) DBS Bank Ltd, Mumbai Branch 在印度散佈。