Luxury Industry Returns To High Profit Track

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, the parent company, the group's net profit increased 53% to 1 billion 100 million euros, and sales revenue increased 16% to 9 billion 100 million euros in the first half of 2010. The first quarter results in 2010 were also very eye-catching. In the first quarter, total sales rose 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 figures.

Similarly, Hermes has increased its sales revenue in the first quarter by 27%. Since 2010, it 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. Thanks to the strong growth in the Asian market and the general revival of traditional European and American markets, the demand for luxury goods is increasing.

For example, sales in Asia increased by 27%, exceeding its expected level. At the same time, sales in Britain, Germany 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.

For the future of luxury goods, the leading brands have expressed confidence that 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.