avoided extravagances and stayed inside during the coronavirus pandemic — but it wasn’t bad news everywhere, with the China market providing a glimmer of hope, reported Caixin.
French luxury multinational LVMH Moet Hennessy Louis Vuitton SE saw its profits plunge 28% in the first half, and Gucci owner Kering SA’s revenues fell 44% on an organic basis in the second quarter.
But LVMH highlighted a strong rebound in the China market and Asia more broadly, in a reversal of the trend seen elsewhere. Chinese consumers on both online and offline luxury shopping sprees were a bright spot, with leading luxury brands seeing an uptick in what analysts call “revenge shopping” as shoppers started stepping into malls again and splurging as they emerged from quarantine.
LVMH and Kering have both attempted to reorient toward selling online to make up for the lack of in-person shopping, traditionally the mainstay of luxury brands. Kering e-commerce sales soared 72% over the past three months, rising to make up 13% of the total.