LVMH and Hermès saw sales surge in the first quarter of the year, buoyed by strong demand in China. What lessons can other brands learn from their strategies?
Last month, luxury giants celebrated a strong start to the year.
LVMH reported on April 13 that sales from its fashion business grew 37 percent compared to 2019 and 52 percent compared with the first quarter of 2020, when lockdowns began to take hold across the globe. At €14 billion ($16.72 billion), the group’s revenues beat expectations by rising 32 percent compared to 2020 and 8 percent over the previous year.
Though few of these firms cited the extent of China’s contribution to their quarterly results, it is impossible to consider their performance without acknowledging the role the Chinese market has played. “All these companies [are] getting a real boost from China,” said Amrita Banta, managing director and co-founder of Agility Research, during a webinar. More broadly speaking, “what is at the heart of this is that the affluent have remained very resilient in this crisis.”
Cover photo: Luxury giants, including Gucci and Moncler, celebrated a strong start to 2021. BoF Collage.
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