Despite reports of weaker demand for high end goods due to China slowdown concerns, many brands are also reporting continued increases in sales and staying the course on expansion plans in China.
Booming demand for luxury goods in emerging markets such as China fueled sales and profit growth at LVMH Moet Hennessy Louis Vuitton SA (MC), PPR SA (PP) and L’Oreal SA (OR) in the first half of 2012, helping ease concern about a slowdown. Read full Bloomberg article here.
Electronics maker Bang & Olufsen (BO.CO) is taking on two little-known strategic investors as it looks to increase sales tenfold in China and catch up luxury rivals in the world’s largest market. Read the full Reuters article here.
PPR SA (PP), the French owner of Gucci, said it’s in discussions to buy a Chinese luxury company to bolster growth in its largest market for high-end goods. Read full Bloomberg article here.
HERMES International SCA, the French maker of silk scarves and leather goods, has reported second-quarter sales that beat estimates on surging demand in Asia and said first-half profit growth matched the improvement in revenue. Read full Sydney Morning Herald article here.
Luxury retailer Burberry rose to the top of the FTSE 100, adding 52p, or 4.2%, to £12.84 as Chinese consumers showed no sign of losing their appetite for expensive goods from Hermés and Rémy Cointreau. Read full Citywire article here.
Many brands have ambitious plans for China and others are entering the market for the first time this year. They are competing in an apparel market that was worth $243bn last year, not far behind the US market that was worth $331bn. Read full BBC article here.
Luxury goods giant LVMH Moet Hennessy Louis Vuitton SA (MC.FR) said Thursday it has entered the second half of the year with confidence as it reported a jump in first-half profit, in a release that may calm concerns that demand for designer handbags and high-end clothes is beginning to cool. Read full article on Fox.
With booming sales, China will soon overtake North America to become the 2nd largest market for luxury carmaker Jaguar Land Rover (JLR) after Britain, the company’s top executive said Friday. JLR Chief Executive Officer Ralf Speth said that the company will increase investment in China to expand its sales network in the country and develop cars that best meet Chinese consumers’ demands. Read full article here.
photo: Chen Man