HomeLuxury LifestyleDespite China's suppression, LVMH maintained strong growth in the third quarter

Despite China’s suppression, LVMH maintained strong growth in the third quarter

Picture: Louis Vuitton

LVMH Moët Hennessy Louis Vuitton released its third quarter results earlier this week on October 12, 2021, reporting a 46% increase in revenue compared to 2020. This means that the world’s leading luxury goods group had revenues of 44.2 billion euros in the first nine months. 2021.

according to Organic revenue growth in the third quarterCompared with 2020, LVMH has achieved a 40% growth and an 11% increase compared with 2019.Between July and September 2021, the luxury goods group’s revenue was 15.51 billion euros, this figure (11%) is comparable to the figure in the first half of 2021. The United States and Asia continue to maintain double-digit growth.

It is worth noting that based on 2019, the group’s fashion and leather products business achieved a 38% organic growth.This extraordinary growth in this business unit can be attributed to the power of LVMH, such as Louis Vuitton with DiorThe former is celebrating the 200th anniversary of the birth of its founder.

Portrait of Louis Vuitton designed for Louis 200
Picture: Louis Vuitton

A series of initiatives were planned throughout the year, which helped to make the brand an ongoing topic. Louis Vuitton Men’s Art Director, Virgil AbloMany of the collaborations have also helped the brand stay popular.

At Christian Dior’s latest Athens fashion show, Paris Both Shanghai and Shanghai have been welcomed by many people. Maria Grazia Chiuri’s collection continues to attract fans, and with the extra star power of its global ambassador, Blackpink’s Jisoo, the brand has shown extraordinary momentum.

In terms of menswear, the collaboration between Kim Jones and Travis Scott marks the debut of the 2022 Spring/Summer series and the return of the physical runway. During this period, social media was very active, and searches for the brand increased dramatically. Among other brands, Celine, Fendi, Loewe and Marc Jacobs performed well.

For the watch and jewelry business group, LVMH’s organic revenue in the first nine months of 2021 only increased by 4% compared to 2019. Compared with 2020, this number has surged to 49%.The core of this business unit will definitely be Tiffany & Co There have been structural changes in its management level recently.The most obvious change is the communication strategy of the American jeweler: “Not your mother’s Tiffany” advertising campaign and high-profile celebrity characteristics Beyonce with Jay-Z.

Its other brands, such as Bulgari, Chaumet and TAG Heuer, are slowly returning to action. Bulgari’s high-end jewelry series, Gorgeous And its snake When celebrities wore it on various red carpets, these creations were widely recognized. For example, Zendeya wore a 93-carat diamond snake necklace on Venice International Film Festival. although TAG Heuer Limited Edition Super Mario Smart watches have gained the attention of game lovers.

LVMH’s overall growth this quarter also shows Chinese President Xi Jinping calls for “common prosperity” There is no impact on the product sales of different business units. When it was first announced that it would strike the Chinese super-rich, many investors worried that the luxury goods industry would lose its main growth engine. After President Xi’s speech, the stock prices of LVMH and its competitors fell sharply.

In the past few months, governments around the world have accepted Covid-19 will become endemic Among the population, and has slowly begun to open the market. In this context, LVMH is confident that it will continue to maintain its growth momentum. “LVMH is relying on the dynamic characteristics of its brand and the talent of its team to further consolidate its global leadership in the luxury goods sector in 2021.”

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