Beautiful Virgin Islands

Wednesday, Aug 27, 2025

Global luxury sector to get a boost on China’s reopening

Global luxury sector to get a boost on China’s reopening

After a year of record sales and profits despite slowing global growth the luxury sector is looking to the reopening of China to deliver further expansion in 2023.
The world’s largest luxury group LVMH posted a 23-percent jump in sales to a record of €79 billion ($86 billion) in 2022 and saw profits climb 17 percent to €14 billion.

The company’s chief executive, Bernard Arnault, wants to continue along that path in 2023, “at the risk of becoming boring.”

LVMH’s rivals also managed blistering growth in sales and profits last year.

Sales at Hermes jumped 29 percent to €11.6 billion and profits soared 38 percent to a record €3.4 billion.

Kering, despite a tough time for its flagship brand Gucci, still managed a 15-percent increase in sales to €20 billion, while profits rose 14 percent to €3.6 billion.

Ferrari also saw sales race to a new record of €5 billion, delivering 13,221 vehicles last year.

The 2022 results were barely dented by the disruption in China linked to end of its coronavirus-related travel restrictions and their progressive lifting at the end of the year, with LVMH calling the month of December an “air pocket.”

Only Hermes escaped unscathed.

“There was no drop in traffic in our stores,” said Hermes chief executive Axel Dumas.

The company’s sales rose 30.7 percent in its Asia-Pacific region excluding Japan.

The gradual reopening of China — which abandoned the last of the draconian travel restrictions of its zero-COVID policy on Jan. 8 — should help its economy expand by 5.2 percent in 2023, according to the International Monetary Fund’s latest forecast.

With the restrictions having restrained consumption, the reopening of the Chinese economy is being looked at as a growth opportunity for 2023.

Analysts at UBS say 2023 will be the “year of the Chinese consumer,” noting that the pandemic restrictions pushed down the share of Chinese consumers in global luxury spending to 17 percent last year, compared with 33 percent before the pandemic.

“The Chinese clientele is much more important than it was in 2019,” LVMH’s Financial Director Jean-Jacques Guiony told journalists.

Guiony does not expect Chinese tourists to return to Europe, where they traditionally spent heavily on luxury goods, before next year.

Instead, luxury groups are focusing on Chinese consumers at home.

LVMH’s Arnault said it was no secret that China needs growth and that the government would likely take steps to facilitate economic expansion as the country reopens.

“If that is indeed the case — and it began in the month of January — we have every reason to be confident, even optimistic about the Chinese market,” he said at the presentation of LVMH’s 2022 results.

China is a “volcano ready to explode,” said Arnaud Cadart at asset manager Flornoy Ferri.

“There is an incredible amount of savings that has been built up, an incredible reserve in the hands of the well-off class which wants to purchase luxury goods,” he added.

Cadart estimated the luxury market in China could jump by 30 percent this year.

Kering’s chief executive Francois-Henri Pinault visited China at the end of January and said he was amazed by the people thronging stores “like the virus had never been in China.”

“This is a good sign,” said Pinault, who also welcomed moves by Chinese authorities to boost domestic consumption.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Spotify’s Strange Move: The Feature Nobody Asked For – Returns
Manhunt in Australia: Armed Anti-Government Suspect Kills Police Officers Sent to Arrest Him
China Launches World’s Most Powerful Neutrino Detector
How Beijing-Linked Networks Shape Elections in New York City
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
2 Australian Police Shot Dead In Encounter In Rural Victoria State
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
A new faith called Robotheism claims artificial intelligence isn’t just smart but actually God itself
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
Labour set to freeze income tax thresholds in long-term 'stealth' tax raid
Coca‑Cola explores sale of Costa coffee chain
Trial hears dog walker was chased and fatally stabbed by trio
Restaurateur resigns from government hospitality council over tax criticism
Spanish City funfair shut after serious ride injury
Suspected arson at Ilford restaurant leaves three in critical condition
Tottenham beat Manchester City to go top of Premier League
Bank holiday heatwave to hit 30°C before remnants of Hurricane Erin arrive
UK to deploy immigration advisers to West Africa to block fake visas
Nurse who raped woman continued working for a year despite police alert
Drought forces closures of England’s canal routes, canceling boat holidays
Sweet tooth scents: food-inspired perfumes surge as weight-loss drugs suppress appetites
Experts warn Britain dangerously reliant on imported food
Family of Notting Hill Carnival murder victim call event unmanageable
Bunkers, Billions and Apocalypse: The Secret Compounds of Zuckerberg and the Tech Giants
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
×