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The study “The Kering Group Financial Document 2020” realizes how important the Chinese market is for the luxury industry.
Like Vuitton betting on the Chinese consumer, brands like Tiffany & Co. They bet on collaborations with Nike, to grow in the segment.
The Chinese consumer has a very interesting consumption profile, based on an economy that becomes the basis for various economies in the world.
The luxury market has been filled with all kinds of variables to understand its performance in the midst of current inflation and the positive numbers that brands have reported, as well as the capacity of certain firms in key markets, help us gauge the last statement of Louis Vuitton about the market and Chinese consumer.
In the midst of this series of statements, he highlights how important luxury is in certain countries and according to dear of “The Kering Group Financial Document 2020”Of the main luxury goods markets worldwide in 2020, the United States is in first place, with a value of 55 billion euros, followed by China, with 44 billion dollars, and Japan with 18 billion dollars.
The Chinese consumer returns
LVMH, owner of Louis Vuittonmade an unexpected omen of what is to come in the economy, noting that the Chinese consumer has already returned to the stores in the reopening of activities, where consumers with high purchasing power are already allowed to return to the stores, so the vision they have of the moment to come is positive.
The sentence has come out in his own voice Bernard Arnault, who acknowledges in his presentation of results, that they have every reason “to be confident, in fact optimistic about China. In Macao, where the Chinese are now allowed to travel, the change is quite dramatic. The stores are packed and it’s really come back with a bang,” he explained.
With this sentence in mind, Vuitton’s reports in the market registered a growth in revenue of 22 percent during 2022, which marks a privileged situation for the group, given the volatility of prices due to inflation, while profits grew in 17 percent.
With the phenomenon that happens in China, it seems that during which they were forced to live in confinement during the most recent outbreak of COVID infections in that country, they accumulated a very high purchasing power that is seen in luxury stores today.
This week we have given an account of the positive mood that has been registered in the market where a common warns the potential of the luxury consumer and is the transcendence of a product, to achieve experiments in brandingwhich position their names.
We made the best argument about the latter when we presented the collaboration between Tiffany & Co. Y Nikeas revealed by a leak of the product that they will present.
Presentations of estimates, product launches, all of this has become a key means for brands to establish contact with the consumer and, most importantly, make it clear that their growth continues and the ability to transcend the market, undoubtedly establishes good examples of how important various resources become, such as attention to a consumer who returns to stores, as shown by the case of China or the special launch that Nike could do with Tiffany & Co.
Both cases show that despite inflation, a tremendously practical resource is the one that has to do with key scenarios such as those that warn of the consumer’s willingness to make strategic purchasing decisions.
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