Economic Downturn, Luxury Goods Soaring

The luxury industry has made remarkable achievements in the first half of this year, and expensive handbags, jewellery and clothing suppliers almost all reported profits, and are expected to continue to soar in the next few months, indicating that the luxury goods industry is able to avoid the downturn.

Despite the great earthquake in Japan, political instability in North Africa, debt crisis in Europe, luxury goods growth is still strong, and the biggest driving force is the demand for luxury goods in Asian markets.

Analysts say most of the demand comes from tourists, who spend a lot of time traveling around the world, as well as the mental capacity of the super rich. No matter how low the economy is, they will continue to buy luxury goods.

LouisVuitton2012 spring summer series

Antoine Belgi, a luxury analyst at HSBC, said: "although there may be major events leading to global crises, the super rich people will not be affected."

Growth trends will continue in the world's two largest luxury groups, PPR and LVMH.

Francois, the chief executive of the PPR group, owns the GuZi brand, said: "a large proportion of tourists from Asian countries are motivated by this trend, and this trend will not stop."

Not long ago, PPR announced that the net income of two brands of Gucci and Barun was two digits, and also revealed the growth of the second half of the year.

Francois and Henri Pinot said: "our revenue growth will continue in the second half of the year."

The fashion giant LVMH group also announced in the near future that with the increase in demand for brand handbags and champagne, revenue and profit in the first half of the year increased by two digits. The Louis Vuitton of the group is still the main source of its income and mainly comes from China. The Louis group is also a major source of revenue.

Jacques Geny, chief financial officer of LVMH, said he hoped that growth in Asia or the US would not slow down in the next few months, and even hoped that European consumption would also be held under the shadow of the sovereign debt crisis.

Over the next few months, analysts will further observe how these fashion giants push price growth and new stores, especially in Asian countries.

Bain consulting predicts that global luxury sales will increase to 185 billion euros in 2011, an increase of 8% compared to 172 billion euros in 2010.

The study points out that sales in China are expected to increase by 25% in 2011.

In order to share this big cake, luxury giants continue to invest heavily in Asia.

LV has opened a new store in Singapore.

The Eve Szentloran Saint Laurent brand of PPR has closed 5 stores in countries with slower economic growth, and has opened 5 new stores in the rapidly growing market. Yves

The rebound of these high-end luxury brands is in sharp contrast to the fate of popular products, such as moisturizing milk and cosmetics.

L'OREAL, a cosmetics giant in France, said its sales in the second quarter were stagnant, with only 0.9% growth in the weak consumer market, such as the United States, Russia and Venezuela.

"Luxury is no longer the first thing that people cut."

Belgi said, "this reflects the rebound of super strong brands in the last crisis."