The luxury goods company, Moët Hennessy Louis Vuitton (LVMH) which is the owner of the world's leading brands such as Louis Vuitton, Givenchy and Christian Dior has reportedly managed to make a huge profit in sales despite the economy being in a tense state with most of the company's operations being affected .
The proof is that LVMH's fashion and leather goods sales jumped by 22% following high demand among wealthy people who want to buy handbags, watches, jewelry and cars despite rising inflation.
It is understood that during the outbreak of Covid-19, customers flocked to Christian Dior and Chanel premises in Paris, Berlin and London, with most of them being Chinese tourists who took advantage of the golden opportunity to buy designer goods at lower prices in Europe.
But for now, Chinese buyers are decreasing due to the Covid-19 policy, while Europeans and Americans continue to purchase exclusive items.
In fact, the sales of Mercedes-Benz AG, Porsche and Volkswagen cars also surged after the wealthy remained interested in buying them.
According to Jean-Jacques Guiony, LVMH's chief financial officer stated that high-end customers are more attracted to the stock market than the slow economic growth, while LVMH is able to continue to increase costs for its customers.
This follows because regular customers buy Sotheby's and Hermes Kelly's most expensive handbag brands at a price of €352,800 (RM1.6 million).
Through the statement of an analyst at Jefferies Flavio Cereda, he is not sure for how long the brand buying activity can continue even though LVMH shows positive results.
"This is a handout from a post-pandemic winner," he wrote in a note to clients. But it is still not clear "whether we are celebrating the last joy", he added.
Despite this, LVMH still beat other companies in the post-pandemic situation, but it is still uncertain whether it can maintain its success in the future.
