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Financial planning

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Filter by

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Filter by

Subcategory

Types

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Hot Topics

Hot Topics

Luxury signalling: Considerations for a K-shaped world

The luxury good space has seen very uneven growth over the last few years. After being the global catalyst for luxury growth pre-Covid, in China, traditional luxury brand growth has stalled and, in some cases, even reversed. This has been ascribed to several factors including a weak property sector that has strained consumer balance sheets (negative wealth effect), a rising preference for local brands (China first), as well as a maturing of consumer profiles and - as a result - their behaviour within the broader sector. The latter explains continued growth in "quiet luxury" brands that prioritise quality and craftmanship above volume and speed to market.

28 May 2026

Hot Topics

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Hot Topics

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Hot Topics

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Hot Topics

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While banks have traditionally been the distributors of credit products - the focus has historically been on the formal economy with strict terms (amounts, loan periods, repayment schedules) attached. In the last few years, however, a growing market of tech-led disruptors have scaled the distribution of micro and nano loans that are typically smaller, more quickly disbursed, and digitally accessible - targeting underserved populations.

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Veblen goods are typically luxury items for which demand increases as the price increases. These goods are not typically consumed simply for their practical use but can have investment value and are also often symbols of wealth and status. The Veblen good contradicts the "normal" relationship between price and demand. The phenomenon was first explained by Thorstein Veblen in 1899 in his book The Theory of the Leisure Class.

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26 November 2024

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Disclaimer

This Publication note is issued by FNB for the information of clients only and should not be produced in whole or part without prior permission. Although FNB is an Authorised Financial Services Provider, any opinions and/or analysis contained in this Publication are for informational purposes only and should not be considered advice, including but not limited to financial, legal or tax advice, or a recommendation to invest in any security or to adopt any investment strategy. The information contained herein has been obtained from sources/persons which we believe to be reliable. Still, it is not guaranteed for correctness, completeness or otherwise. We do not assume liability for loss arising from errors in the information or that may be suffered from using or relying on the information contained herein, irrespective of whether there has been any negligence by us, our affiliates or any other employees of ours, and whether such losses are direct or consequential. As market and economic conditions are subject to rapid change, any comments, opinions and analyses are rendered as of the date of publishing and may change without notice. Such changes may have a material impact on the outcome of any investment. Securities involve a degree of risk and are volatile instruments. Past performance is not indicative of future performance. Securities or financial instruments mentioned in the Publication note may not be suitable for all investors, and FNB bears no responsibility whatsoever arising from or as a consequence thereof. The material is not intended as a complete analysis of every material fact regarding any share, instrument, sector, region, market, country, investment or strategy. The recipient of this Publication must make their own investment decision and is advised to contact their relationship manager for a personal financial analysis before making any investment decisions. Copyright 2023.

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