According to AP, Chinese sales boosts luxury goods market in 2009. Despite the economic crisis, 2009 ended better than it began for the French luxury goods sector, thanks largely to China's growing taste for high-end products, encouraging thoughts of a better 2010.

 

Following the trend set by other global luxury brands, Hermes and LVMH (Louis Vuitton Moet Hennessy) announced fourth quarter sales growth on Thursday and Friday, suggesting the worst of the crisis could be over for the sector.

 

After announcing that annual profits fell 13 percent to 1.7 billion euros (2.3 billion dollars), LVMH chief executive Bernard Arnault said he was pleased with "record" sales figures for December, which he said would "grow in January".   China's growing appetite for luxury goods offset the fall in sales in the United States and Europe, the areas worst affected by the recession, and Japan which was hurt by the falling yen.

 

To illustrate the point, China's consumption of LVMH goods rose by 15 percent in 2009 and now represents six percent of all company sales. For two of LVMH's leading brands the figures are more striking -- China is now the world's top consumer of Hennessy cognac and the second biggest Louis Vuitton buyer.

 

Over at Hermes, sales jumped 32 percent in Asia in 2009, excluding Japan, and it will open four new shops in China in 2010.

 

Louis Vuitton plans to open five including two in Shanghai, host city for the 2010 World Expo from May to October.

 

"Between 70 and 100 million visitors are expected over the six months, most of them Chinese," said Yves Carcelle, Louis Vuitton president.

 

In 2010, "China will remain a motor of growth for the sector", according to Catherine Rolland, analyst with Kepler Capital Markets.

 

"An improvement in the trend in North America, which declined sharply in 2009, could also be a factor in improving the overall trend in the market," she added.

 

 

LVMH Moët Hennessy • Louis Vuitton S.A. (Euronext: MC), usually shortened to LVMH, is a French holding company and one of the world's largest luxury goods conglomerate. It is the parent of around 60 sub-companies that each manage a small number of prestigious brands. These daughter companies are, to a large extent, run autonomously. The group was formed after mergers brought together champagne producer Moët et Chandon and Hennessy, a leading manufacturer of cognac. In 1987, they merged with fashion house Louis Vuitton to form the current group.

 

Hermès International, S.A., or simply Hermès (French pronunciation: [ɛʁmɛs],English: /ɛərˈmɛz/ ( listen)) is a French high fashion house specializing in leather, ready-to-wear, lifestyle accessories, perfumery, and luxury goods. The company is renowned in the fashion world, and its products are considered to be prestigious due to their degree of craftsmanship, reputation, and price. It is recognized by its logo of a Duc carriage with horse.

 

Established in 1837 by Thierry Hermès as a saddle shop in Paris, the company has grown internationally yet continues to implement its traditional techniques into its creations. Recognized clientele of Hermès include: Paris Hilton, Nicole Kidman, Julianne Moore, Elle MacPherson, Elizabeth Hurley, and Madonna.