Margin deterioration from CBEC and corporate daigou channels squeezing them? This is only true if they need to move their product through these channels to get to the Chinese market over the next several years. But these channels didn't pick up the demand they were expected too, which is really a blessing in disguise imo. MBS store presence increased by the thousands with China label doing well. This is an impetus to fix their supply chain to China. Also build brand awareness to drive demand for the product in China, so that the company gains more bargaining power in the prices it negotiates.
Chart Update, page-16412
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