What development in the luxury sector? The case of China

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[...] What development in the luxury sector? The case of China Introduction Luxury has been part of society for thousands of years. It has always been present at all times and in all cultures. This is a concept that has different definitions depending on the country and, of course, especially among consumers, who do not all understand it in the same way. From this perspective, we will say that luxury falls under both sociology and psychology. The notion of luxury evolves with time, but whatever the case, it remains very subjective, subject to the appreciation and dreams of everyone. [...]

[...] Consumers today want a whole new shopping experience. They don't just want to buy. They want to feel. Luxury can no longer afford to remain passive in the face of competition and ever-increasing consumer demands. Brands are waging a war to attract customers, who are more numerous and increasingly younger. In China, consumers feel closer than ever to the biggest brands. The Chinese want to participate in events. They want to create their own trends. From this perspective, luxury brands can no longer create mass production, also called "mass prestige." The current economic context remains uncertain, especially since the onset of the health crisis, which has deeply impacted all sectors of activity, including luxury goods. [...]

[...] Once the company presentation has been made, we will talk about refocusing and profitability, internal and external growth strategy, the internationalization of the group and finally, the health crisis and its impact on the group. Finally, the last part will be devoted to the struggles and the limits of this luxury. We will talk about counterfeiting, the specific case of China, and the costs incurred by the various players. The luxury sector A. Definition of the luxury industry The luxury industry includes all companies that at some point in their existence invent manufacture and market high-end products, or luxury products. [...]

[...] France is closely linked to China. More and more Chinese consumers are particularly interested in French luxury, France being considered the country of luxury par excellence. In the face of the crisis, China has become Europe's largest trading partner, but relations with France remain unbalanced. Today, China is France's biggest bilateral deficit, with sales that have fallen sharply with the health crisis. In addition, exports to China fell sharply in 2020, by more than 17 billion euros compared to the previous year. [...]

[...] That same year, more than 75 houses belonged to the whole of the company. B. Refocusing and profitability Refocusing has long been one of the group's strategies to be ever more profitable and to attract more customers, with a wider target as well. It is about concentrating a majority of its activities on the very high end, which is in a way the heart of the business of the company. We were talking about the health crisis above, and in Asia, you should know that in China, LVMH continues to sell a large number of products, there have been no particular slowdowns. [...]