The Middle East conflict spreads to luxury goods, with luxury giants losing hundreds of billions of dollars in market value.

Ask AI · How does the Middle East conflict affect high-end demand in the luxury goods market?

【Middle East war ignites luxury goods, luxury giants’ market value evaporates by hundreds of billions of dollars】Cailian Press, April 3 — Currently, the impact of the Middle East situation is gradually spreading to the high-end consumer market. From luxury cars to luxury goods, demand relying on high-net-worth individuals is beginning to fluctuate. Market concerns: the conflict may not only impact short-term sales but also further weaken global high-end consumer confidence through energy prices and financial markets. The Middle East region is an important and high-profit growth market for many luxury and high-end automakers. Take Ferrari as an example, in 2025, it delivered 626 cars to the Middle East, surpassing the performance of the UK, Switzerland, and France markets respectively. However, after the outbreak of the conflict, Ferrari suspended most of its vehicle shipments to the Middle East, and its stock price has fallen more than 16% in the past month. Beyond luxury cars, the overall luxury goods market will also come under pressure. Since the conflict erupted, the stock prices of luxury companies have fluctuated frequently, leading to a total market value loss of about $100 billion for major luxury giants including LVMH and Hermès. (CCTV Finance)