With the grim global economic scenario, many businesses have witnessed a slowdown. But thanks to the strong appetite in the emerging markets and tourist buyers in Europe, the luxury goods industry is growing at a solid pace. Luxury brands such as Hermes, Dior, Louis Vuitton and Lanvin have expressed the opinion that trading remains buoyant even if consumer confidence was down. Speaking at a fashion show in Paris, Hermes Chief Executive Patrick Thomas told Reuters that there was no impact on their sales for the moment, adding that he thought that the purchasing power of luxury consumers had not changed yet. However, as a word of caution, he admitted that the situation could change tomorrow; he said, “The fact that we see nothing today does not mean that we will not see anything tomorrow. When there are moments of macroeconomic concern, they always tend to affect our markets.” Hermes is world-renowned for its 10,000-euro Kelly handbags.
On a different note, Thomas said that Hermes would very soon create an internal controlling company holding, having received a green light from a Paris court to do so. The structure will lock in the founding family’s descendants for 20 years, thus making it harder for Hermes family shareholders to sell their stakes to LVMH.