- Luxury powerhouse LVMH has reported a strong performance in its Q2 earnings.
- Europe was a hotspot for LVMH’s income, showing a 22% year-over-year increase.
- Chinese consumers are projected to spend $444.7bn on luxury goods in 2023.
LVMH, a major player in luxury goods, has released its Q2 earnings, which show a strong performance due to Asian and European sales, despite concerns about reduced spending in other areas.
In Asia, excluding Japan, revenue increased 23% compared to the same time the previous year, furthering the success of the multi-billion-dollar organisation.
China has been the main driver of sales since the beginning of 2021, when the company experienced a 14% boost due to the end of the pandemic in China.
Europe also showed a strong performance in LVMH’s results, with a 22% year-on-year rise in sales on the European market and international luxury markets. However, demand in the US lagged behind other regions, increasing by only 3% in the same timeframe.
The recovery of Asian markets, due partially to China’s easing of pandemic-related regulations, has been a significant factor in the company’s business expansion.
High net-worth individuals (HNWIs) looking to purchase goods from LVMH on the luxury Chinese and European markets will need to utilise safe money transfer methods.
LVMH opened a Sephora store last month in Shanghai, furthering its ambitions to access the Chinese market.
Dubbed the ‘Store of the Future’, the new venture is intended to strengthen LVMH’s relationship with Chinese consumers, said Maggie Chan, managing director of Sephora Greater China, in an official statement.
According to projections by market research firm Euromonitor, Chinese consumers are estimated to spend $444.7bn on luxury goods in 2023. LVMH reported that 37% of its total revenue came from Asia in 2022.
European customers are estimated to be the second largest consumers of LVMH worldwide in 2023. A significant portion of the sales on the luxury Asian market has come from European HNWIs travelling to Asia or making overseas purchases.
HNWIs wishing to visit China and experience its luxurious consumer culture should research safe international money transfer options.
Wealthy Europeans hoping to invest in luxury items can use our money transfer comparison tool to find the best transfer options available.
