LVMH earnings last week, one of the world’s largest luxury group saw its net profit jump 18 percent for the year driven by solid demand for fashion and leather goods and a 15 percent jump in sales in Asia for the last quarter.
Bernard Arnault, chairman and CEO of LVMH, commented that one of the factors that “made a difference” was the “desirability of the brand.”
In a 2018 study that surveyed 1,000 affluent Chinese consumers including 300 millionaires. Fifty percent said they expect to spend more on luxury items in 2019, with 47 percent in particular looking to buy from more expensive brands: the desirability factor again.
One has to wonder how long demand for desirable expensive foreign goods and experiences can hold up for, especially when paired with a weakening local currency. For the time being however, China demand for luxury seems to be mighty resistant.