Kering Sales Lag, The Future of Luxury in China
These are the stories making headlines in fashion on Wednesday. Kering's sales lag behind its rivals Kering, the French luxury conglomerate that owns brands such as Gucci, Saint Laurent and Bottega Veneta, has seen only a 1% increase in sales this past quarter, significantly lagging ..
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Kering's sales lag behind its rivals
Kering, the French luxury conglomerate that owns brands such as Gucci, Saint Laurent and Bottega Veneta, has seen only a 1% increase in sales this past quarter, significantly lagging behind its competitors. LVMH's sales grew by 17% and Hermès by 23%. Kering's slowing performance can be attributed to rising inflation rates and consumer backlash against its brands like Balenciaga, which saw a significant decline in revenues. {Business of Fashion}
The future of luxury in China
Despite facing challenges like the pandemic and geopolitical tensions, China is expected to remain a key driver of growth in the luxury market, with younger consumers leading the way. "We registered some pretty nice pick-up in China, which bodes well for the rest of the year," said Jean-Jacques Guiony, CFO of LVMH, which saw sales rise 17% this quarter. Luxury retailers like Louis Vuitton, Chanel and Dior are hosting a slew of events in China to boost their presence in the crucial market, in addition to experimenting with new technologies like e-commerce platforms.
