Who doesn’t love Louis Vuitton? Ok, many of us don’t but you have to hand it to them to be a much-loved showstopper. As does Christian Dior. When it comes to dealing with the likes of these fashion giants, nothing works as per the norm. For example, the riots in Hong Kong caused some serious concerns in the region because of the buying power usually expected from this country. Tiffany & Co faced loses, they announced, due to the week-long protests. Other brands voiced similar fears.
But LMVH, owner of brands like Louis Vuitton, Christian Dior and Veuve Cliquot champagne, announced “better-than-expected” sales for their third quarter of this year, mostly from sales across the rest of Asia (including mainland China), Europe and the US. This lead them to “shrug off” the concerns on the business due to the protests. The company announced an 11% hike in sales in Q3, higher than the 9% forecast. They announced revenues pf $14.6 billion, with sales going up to 19% high from fashion and leather goods.
Fashion is a religion to some. As do people in certain countries turn to prayers during a time of difficulty, fashionistas turn to retail therapy. That’s the simple logic. Or rather, it is just the power of how well a brand is doing when its biggest market gets turbulent and yet come out in flying, profitable colors.