Luxury Brands Benefit From Strong Growth In Emerging Markets In Asia

The worst moment is over. The world's most influential luxury brands recently reported that they benefit from the strong growth of emerging markets in Asia and the general recovery of the global market. The luxury industry has returned to the track of high profit and high sales revenue growth.

In the first half year performance report released by LVMH group, LV's parent company, the group's net profit rose 53% to 1 billion 100 million euros, and sales revenue increased 16% to 9 billion 100 million euros in the first half of 2010.

Burberry's first quarter results in 2010 were also very eye-catching. In the first quarter, total sales increased by 30.6%, from 216 million to 282 million pounds. Except for the Spanish market, the growth rate of all areas and sales channels of the brand was two digits.

Similarly, Hermes has increased its sales revenue in the first quarter by 27%.

Since 2010, Armani has shown a different development trend from 2009.

At present, the global luxury industry is emerging from the global financial crisis, the market has generally been frustrated since the new atmosphere.

Because of the strong growth in the Asian market and the general recovery of the traditional European and American markets, the global demand for luxury goods is increasing.

Take Burberry as an example, its Asian sales increased by 27%, exceeding its original level.

Meanwhile, sales in the UK, Italy and Germany appear to be "excellent".

LVMH also attributed its performance to the contribution of the new high growth market. At the same time, the Group believes that the strategic positioning of "brand building ahead of time in high growth areas" and cost reduction are important reasons for LVMH's rapid growth in 2010.

As for the future of luxury goods, the leading brands also expressed confidence. Burberry said the company plans to open 20 to 30 stores in the current financial year, mainly in the Americas and the Asia Pacific region.

LVMH said it would continue to focus on emerging markets, open stores in new countries and maintain leadership in traditional markets.