Saturday, December 1, 2012

Luxury Products


Demand for luxury products has been a real mixed-bag this year. While some of the major brands that have been depended on to hold up the market in the past are announcing serious shortcomings, others are picking up the slack and even raising their sales growth targets. So can we safely assume that the failing of some of the major luxury stocks are brand specific and is not reflective of the general market? Maybe.


Luxury Goods across the Board
Taking a look at European luxury goods that are doing well, right off the bat we can see Hermes International, which enjoyed increased profits of 28% in the first half of 2012. With a soaring demand of its products coming out of Asia, the French company beat its estimates that resulted in increasing the sales and growth targets. Salvatore Ferragamo's Italian design house followed suit by posting a profit growth for the most recent quarter that reached the double digits.  Crossing over to the US luxury retailers, Coach is showing nice earnings through its approach of lowering prices to keep the customers coming, which has proven to be a well rewarded effort. Michael Kors followed a similar line by offering designer goods that are very affordable and in rebranding a collection of Fossil chronograph watches and accessories that has been very successful.

High End Market
It seems that many of the companies that position themselves at the top end of the luxury market are the ones that appeal to the wealthy buyers. The Chinese are continuing to do their part in maintaining the strength of the international luxury market. So long as the Chinese continue to increase in wealth and reward themselves with luxury items, the high-class brands can hope to enjoy continued growth. Although the Chinese market is changing, it is still growing in sophistication and to date there has been no significant decline. Even as their spending patterns remain cautious, the demand for luxury products continue to grow, pushing up prices and profits around the world. 

9 comments:

  1. The retail market is no easy market for one to survive. While there are different levels of classifications, the top luxury levels are by far the most difficult to maintain. However, through careful marketing and information analysis, one can just stay fine in this survival top level.

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  2. If you have extra money, I think it is good to invest to the luxury market. As these products will have a potential to sell with a higher price in the future.

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  3. This is just a surprise, I never thought that luxury items are still doing well, in spite of the fact that there is a wide economic crisis globally. China is really making its way to compete and contribute a lot in the different aspects of the market. Proving themselves that in the future, they will be the icon of the manufacturing industries exporting different products across the nations.

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  4. Great to see this luxury products. The picture is very cute which attracts the visitors a lot

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  5. Seems even the rich are having 2nd thoughts about buying luxury items these days. Some companies are doing very well, why others are hurting. great info. you have provided here.

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  6. Wow That is truly Amazing I wish I could afford stuff Like this. Maybe one day.... Nice topic

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  7. This brand is very popular and good. It is very informative blog. Thank you for share it with us.

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  8. I like branded clothes and accessories. Thanks for sharing this article.

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  9. As economic disparities go up, sales of luxury goods go up for the few having enough through exploiting others.

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