Demand for luxury goods in China and the economy also developed rapidly, and have advanced to the second largest consumer of luxury goods. The world’s largest luxury goods group – Louis Vuitton (LVMH) (LVMH.PA: Quote) on Monday said it expects next year The watches and jewelry business in China will show a “very significant growth”, and efforts to enhance market share and expand to three or four tier cities.
Louis Vuitton watches and jewelry, President Jean-MarcLacave North Asia told Reuters in an interview that while the global luxury goods industry experience a downturn this year, they also see a rapid recovery, and growth despite a slowdown in the Chinese market, but in Over the past few months was markedly recovered.
“If you can maintain the current situation, and based on our past 4-5 months have seen, we can say that there will be a very significant growth next year.” Lacave said.
According to the World Luxury Association latest survey shows that total spending by the Chinese luxury goods in January of this year’s 8.6 billion to 9.4 billion U.S. dollars, the global share of 27.5%; The Association estimates that by 2015, China’s luxury goods will account for 32% of the global market, surpassing Japan as the world’s largest consumer of luxury goods.
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In North Asia for three years of Lacave frankly, North Asia business focus is to obtain the potential Chinese market, “which for us is very clear objective.” Louis Vuitton watches and jewelry in China currently has about 100 point of sale, he declined to point growth target for next year’s sales, but said many of room for growth.
He said the Chinese luxury consumers a wide footprint, the rising demand for luxury goods, and these consumers are no longer confined to China’s first and second tier cities, the company plans to reach three-city to meet local consumer needs and focus in China for a higher market share.
“Extension not only in the second line, growth will be in three and four-wire … consumer brand contacts or less, but there’s various aspects, including the spending power and so can be compared with Shanghai and other.” Lacave said.
He pointed out that for Louis Vuitton is concerned, not only the Chinese market, Chinese visitors is the company itself an important source. “We are facing more and more Chinese customers to purchase different parts of the world, which are in effect in New York, Paris … I am not saying that we would deliberately create these products only to customers in China, but they do want luxury products and services have some contact with them. “
Louis Vuitton watches and jewelry sales more than brands, including TAGHeuer (Hoya), Zenith (Zenith), Hublot, DeBeers, etc.. In 2008, to the delivery area calculation, 12% market share in Japan, Japan than 16% in Asia.
In addition, the Louis Vuitton luxury watches held by Chinese retailers – Hendry (3389.HK: Quote) about 7.5% stake, while the other watches Group – SwatchGroup (UHR.VX: Quote) holds Henderson equity interest of about 8.1%.
Louis Vuitton again this year and Hendry signed a strategic cooperation agreement, which authorized exclusive agent in China TAGHeuer (Hoya), Zenith (Zenith) Watch. Lacave said Hendry for the company to continue as a major retail partner in China and said “you know, or with working with people better.”
However, the U.S. consulting firm Bain study published in the 10 months reported that the global luxury goods market is expected to shrink this year to year, while next year growth is relatively weak, because the market is expected to appear only slightly in the next few months, signs of recovery. [ID: nCN0949028].
In the first nine months of stocking distributors involved, Louis Vuitton watches and jewelry business turnover decreased by 19% a year, when the total turnover of about 4.5%.
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