Growth Of Brands Like Gucci, Burberry In The Mainland Shows Growing Faith In Chinese Consumer Among Western Luxury Retailers
Luxury brands like Louis Vuitton have stormed the mainland in the last five years, growing quickly even in second- and third-tier cities, as consumption rates in developed markets slow
As signs that the worst of the economic crisis may have passed are increasingly pointed out by Bloomberg, The Wall Street Journal and others, attention has spread to the beleaguered global luxury market. While growth in this market has come to a screeching halt in traditional markets like Japan and North America as consumers cut back, analysts have predicted that the corresponding rise of the Chinese consumer — a rise that has been expedited by the Chinese government’s rapid shift to promoting a consumer-based, rather than export-based, growth plan — helps luxury brands ride out the ongoing global slowdown. According to many luxury CEOs, the key to their brands’ continued survival and expansion in this market lies solely in emerging markets like Russia and China. So the question has become, will it be enough to keep these brands afloat?
Posted in Business, China, Culture, Fashion, Luxury
Tagged bloomberg, BRIC, China, chinese government, christian dior, consumer, gucci, hennessy, japan, louis vuitton, Luxury, LVMH, recession, russia, seeking alpha, versace, wall street journal
Luxury Brands Relying On Demand From BRIC Countries To Get Them Through Economic Crisis
The economic crisis hasn't dimmed the hopes of Dunhill's China Managing Director Jonathan Seliger for the brand's viability in the Chinese market. Photo © Mick Ryan.
The growing economic clout of the BRIC countries – Brazil, Russia, China, and India – continues to buoy luxury brands, helping to counteract the drop in demand from more established global markets. As luxury brands report their earnings from the first four months of 2009, we can clearly see that the plummeting demand in North America, Europe, and Japan has been somewhat devastating.
Posted in Business, China, Luxury
Tagged brazil, BRIC, cartier, China, dunhill, hong kong, india, Luxury, montblanc, richemont, russia