Increasing numbers of luxury goods groups are targeting Indonesia, despite the major challenges which face companies seeking to progress in the country.
Gucci, a unit of PPR, is developing a flagship store in Jakarta with a floor space of 5,500 square feet, as it attempts to exploit the favourable trends observable in the Asian nation.
Hermès, the French luxury group, opened its third store in Jakarta earlier this month, specialising in high-end watches, while Fendi, owned by LVMH, has also unveiled two new sites in Indonesia in 2012.
German fashion house Hugo Boss said second-quarter sales in China rose just 1 percent, as shoppers once hungry for luxury purchases stay away from shopping malls.
"Consumer sentiment continues to be shaky, with many customers cancelling or postponing luxury purchases," Chief Financial officer Mark Langer said after Hugo Boss reported quarterly results.
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US leather-goods retailer Coach, Inc. on Tuesday said sales rose 19 percent to USD1.26 billion for the second fiscal quarter ended on 1 January 2011 from USD1.07b last year. Net income for the quarter jumped 26 percent to USD303 million.
Direct-to-consumer sales increased 17 percent to USD1.10b from USD934m last year. Japan sales were even on a constant-currency basis, while dollar sales rose 8 percent driven by a stronger yen. China sales remained robust, as POS sales continued to comp at a double-digit rate.
Swiss luxury goods holding company Richemont reported a 23 percent sales growth for the three months ended 31 December 2010. The growth was broad-based, with the highest rate reported in the Asia-Pacific region, the company said in an official statement.
Swiss luxury goods group Richemont on Friday announced its unaudited consolidated results for the six month period ended on 30 September 2010.
Sales increased by 37 percent at actual exchange rates to EUR3.26 billion (USD4.41b) from EUR2.38b in the same period last year. At constant exchange rates and excluding the impact of the acquisition of NET-A-PORTER.COM in April 2010, sales increased by 22 percent. Gross profit grew 44 percent from EUR1.46b to EUR2.11b.
Sales this Lunar New Year are unlikely to be much of a saviour for luxury purveyors. The world’s biggest prestige retailers, including Kering, LVMH and Prada, were pinched after a tough fourth quarter last year affected by pro-democracy protests in Hong Kong. Protests against mainlanders in the New Territories this month and a stronger Hong Kong dollar against the yuan suggest no easing up in the retail environment.
Gold shops in HCM City are stocking many kinds of original products and hope to make big profits on them during Tet.
Gold traders expect the demand for gold products to be particularly high on the 10th day of the new year, which is the birthday of the God of Wealth.
Last year, many gold shops were hit by a shortage of stock after people flocked to buy gold on that day, according to market observers.
If in fashion, being late on a trend can be lethal, playing catch-up in terms of business strategy can be just as damaging.
Prada is learning that lesson the hard way. The trend in luxury goods is to drum up same store sales by curbing expansion and wowing customers with new products, yet Prada continues to pay over the odds to open swanky new shops and stock them with handbags little changed from previous bestsellers.
LVMH Moët Hennessy Louis Vuitton SA said on Tuesday that US consumers helped drive revenue gains last year, offsetting continued sluggish sales in China.
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The Indian luxury market is estimated to be worth USD18 billion by 2017 from the current level of USD14 billion with unprecedented growth in luxury categories including fashion, automobiles and fine dining.
This was among the findings of a joint study conducted by The Associated Chambers of Commerce & Industry of India (Assocham) and Yes Bank.
The report noted that the market is poised to expand three-fold in next three years as the number of millionaires are expected to multiply three times in another five years.