The world's most prominent luxury group said the reported economic slowdown in China has not affected sales and revenue, contrary to the accounts of other companies that saw a huge decline in demand.
According to Quartz, LVMH, owner of popular brands such as Dior and Louis Vuitton, said on Tuesday that sales in China actually improved compared to records from the previous year. The luxury brand's revelations came after some analysts predicted that the fashion industry might be heavily impacted by the predicted slowdown of the Chinese economy.
While LVMH did not provide specific details about its improved sales in China during the last quarter of 2018, the company did state that it is expecting to see similar progress results this year.
In July, the French conglomerate slashed prices by 4 percent for its Chinese customers. The move was made after Beijing reduced imports in a bid to promote the country's local fashion products. Still, revenue in China turned out good for the French provider.
Despite fears about how the luxury industry will perform in 2019, LVMH appears to be on a steady track upwards. In its quarterly report, the company revealed that sales increased by 19 percent in 2018.
Financial Communications Director for LVMH, Chris Hollis explained that while the Paris-based conglomerate is "cautious" of its activities this year, it isn't completely pessimistic about 2019's economic development.
Over the past weeks, some companies have blamed their low sales on China's economic decline. However, experts suggest that LVMH may have become a brand the Chinese people won't easily give up on - crisis or no crisis.
Bloomberg noted that financial forecasts delivered a 10.5 percent prediction of Louis Vuitton sales for Q4 2018. However, the luxury giant exceeded these expectations as for organic growth data soared by 17 percent.
The outlet pointed out that one of the reasons why LVMH is getting through tough times is because of its willingness to spend on promotions and advertisements. Also, the luxury chain has an appeal on Chinese consumers like no other.
Another brand that is fairly popular in China is Gucci. Financial analysts expect the Italian fashion company to hold out just like LVMH is doing. In the list of thriving companies that could continue to grow despite the slowing global economy are Balenciaga and Hermes International.
Experts further predicted that some single-brand companies may have a tougher time in 2019, unlike LVMH and other luxury providers that capitalize on multiple sub-brands. These single-brand enterprises are Burberry Plc. Salvatore Ferragamo, Swatch Group AG, and Richemont.
