LVHM Behind Big Data

"These data illustrate everything."

As president and chief executive of the French luxury giant, Bernard Arnault said optimistically.

"We are full of confidence in the second half of the year."

Not only the LVHM group, but also the other European luxury brands, and the sales of Herm s International increased by 27 percentage points in the second quarter.

Burberry increased by 30.6% in the first quarter.

Even in the first half of the year, Arnault, like other executives of other luxury goods companies, is cautious about the global economy and believes that it is "uncertain".

However, he also said: "we have reason to believe that this industry will continue to flourish."

At the same time, he also said: "for some products, the demand is higher than the supply.

It has to be said that this is an enviable challenge. "

It is reported that Louis Vuitton has set up new studios and factories in France and Belgium, which ensure that they continue to sell two digit sales growth, and increase the income of fashion and leather products to 17.7% of total revenue.

At the same time, President Arnault also proudly claimed that the latest Cheval Blanc sold at a price of 600 euros per bottle, or about 775 dollars, was sold out in 10 minutes.

There is a great demand for high-end liquor. "

Arnault did not talk about the exact revenue or sales plan this year. However, he said: "thanks to the economic crisis, we have stopped making any predictions."

Net income rose to 1 billion 50 million euros in the six months ended June 30th, compared with 687 million euros in the first half of last year.

Like other luxury brands, the LVHM group gained in exchange rate fluctuations, which increased by 116 million euros on the bottom line in the first half of the year.

According to the statistics of LVMH, sales increased by 22% in the second quarter, while sales increased 11% in the first three months of this year.

According to WWD's calculation, sales in the second quarter increased by 22.1% to 4 billion 630 million euros, compared with 3 billion 790 million euros in the same period last year.

In the first half of 2010, total sales amounted to 9 billion 100 million euros, compared with 7 billion 800 million euros in the same period last year.

In terms of organic development, that is, year-on-year sales and constant exchange rate, its revenue growth is steady at 14%.

According to the breakdown of products, watches and jewellery sales increased by 28% in the first half, wine and spirits increased by 20.7%, retail sales increased by 13.7, while perfume and cosmetics increased by 12.1%.

LVMH said that last year, the phenomenon of reduced reserves has ended, which has resulted in a sharp decline in revenue from alcohol and watch products.

In the first half of this year, sales of perfume and cosmetics in the United States increased by 16%, based on the local exchange rate. The star brand Christan Dior is the leader, and the new perfume of Miss Dior Ch RIE will be released in the second half of the year.

It is reported that Natalie Portman in Paris for the perfume advertising, the director is Sofia Coppola.

The growth of sales has accelerated the flow of cash, while the group is raising share repurchases, expenditures and acquisitions.

For the next topic, Arnault responded to the audience's questions, saying that LVHM was not interested in acquiring the French beauty giant L "Or Al", but he said he was looking for other possible targets.

"Or I have some plans but I can't disclose them, otherwise we don't have any plans, so what else can I say?"

He shrugged his shoulders and responded with a smile.

In a survey, Evolutions Securities analyst Dennis Weber said LVMH sales and profit figures were much higher than expected, but he also warned that LVHM would not necessarily repeat its strong sales performance in the first half of the year in the second half.

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Not long ago, Christian Dior SA also released its own report.

Dior's fashion sales increased by 10 percentage points to 373 million euros in the first half, and its sales in its boutiques increased by 17%.

Sidney Toledano, chief executive of Dior, said that apart from Japan, its brand has seen strong sales in other Asian countries.

In May, Dior showed its Cruise Series in Shanghai and reopened its boutique at Hang Lung Plaza. Toledano said the activity had a huge impact on the whole region.

Leather goods, women's and men's ready-made garments rank first among sales growth products, Toledano said.

During this period, the operating profit was 8 million euros.

"This reflects that although the investment in publicity and product development is very high, gross margin is still growing."

Toledano says.

Burberry is entering the Chinese market at that time.

Burberry is preparing to enter the Chinese market in a big way.

Not long ago, Burberry group announced that it would buy its franchise partner Kwok Hang Holdings in the mainland of China for 70 million pounds.

"This will be our biggest deal this year, and we have been conducting serious consultations and dialogues over the past six months," said Angela Ahrendts, chief executive of Burberry.

"In the past 18 months, we have gained the initiative in the four largest emerging markets in the world, including the Middle East, India, Brazil, and now China."

She also said that she will open 10 new stores in China this year.

"We will let these stores go hand in hand."

She said.

Ahrendts also said that she will come to China in August to inspect the brand store in China. Burberry has 50 stores in 30 cities in mainland China. She will personally understand the market demand and consider how to integrate the brand's operation in China into the larger business structure of the group.

The medium-term plan of Ahrendts is to double the number of Burberry stores in the mainland of China to 100.

In July 16th, Burberry said it bought 50 franchise stores from Hongkong's franchise partner Kwok Hang Holdings Ltd., and expects the paction to increase revenue by 20 million pounds, or 3 thousand 800 thousand dollars, from 2011 to 2012.

In addition to 50 stores in mainland China, Burberry has direct management rights to 13 stores in Hongkong, 1 stores in Macao and 19 stores in Taiwan.

In the past 18 months, Burberry has quickly controlled regional franchises and chain stores and pformed them into their own direct stores.

In India, the Middle East and Japan, Burberry has established joint ventures, and this year will also set up direct stores in Brazil.

Ahrendts says that all Chinese stores will sell Burberry's global products, and about 2/3 of the stores have used Burberry's new store concept.

She added that the Burberry Asia Pacific team will take charge of its business in China and share the brand's supply chain, information, sales resources and digital marketing strategy.

Evolution Securities, based in London, praised the deal.

"This will enable Burberry to fully control the supply of brand to consumers, especially in this fast-growing luxury market."

The company said, "the financial return of the paction looks excellent."

Not long ago, Burberry released its first quarter sales report in the Asia Pacific region.

Sales increased by 43% in real exchange rate and increased by 30% under constant exchange rate.

Globally, sales increased by 30.6 percentage points from April to June 30th in the three month period, reaching 282 million pounds, or about 434 million 300 thousand dollars.

Ahrendts said that sales of men's clothing and outdoor clothing are the main driving force in the Chinese market, and children's clothing parts also have great potential.

"Parents and grandparents will spend a lot of money on their only children or grandchildren."

Ahrendts said, adding that Burberry is considering whether to set up children's wear stores in China.

She also worries that the biggest challenge in China is uncertainty.

"Others warn me that whatever you do in China, you can't expect things to happen."

"There are no business problems that will keep me awake all night, but now that the market is developing so fast, I'm sure something will happen," she said.