Japan Still Top Contender in Luxury Markets?
Japan has been a leading luxury country in the world but the recent tragedy has forced the biggest brands in fashion to see how affected sales are going to be. While it is still early to really make a decision, it looks like Burberry and LVMH’s brands are breaking off easier than originally predicted. Both are reporting only minor differences in overall sales.
Many of the luxury products sold in Japan came from Chinese visitors who came to Japan because there was no offering in their homeland. Luckily, the recent expansion into China by LVMH and Burberry retailers has proven to be a perfect hedge to Japanese turmoil. Both companies are only claiming short losses from Japan and decent gains in their overall. The results and reaction to Japan by these two luxury companies are still a bit vague, but for the most part both companies are still optimistic as it seems Asia in general is the emerging leader in luxury sales.
We should also note that LVMH did donate 500 million Yen to help relief efforts in Japan. We will have to keep an eye on the Chinese market as it is beginning to position itself as a luxury fashion Mecca. Soon the biggest fashion week may be in Hong Kong! I wonder if this means that we will see more Asian models on the runways, and how it will affect diversity in print ads as well…