France: Dynamic leader of luxury products
As far as the specific types of luxury items represented by such numbers, the list includes jewelry, clothing, accessories, wines and leather goods, among others.
Moët Hennessy • Louis Vuitton S.A. (LVMH Group) is one of the most lucrative firms in France, and, in 2012, it reported a 19% sales increase, resulting in a turnover of €28.1 billion (37.25 billion U.S. dollars). Hermès, being one of the more known French fashion brands, reported a historic €3.4 billion turnover, which represented a 22.6% increase in the company’s sales.
Despite the intrinsically competitive nature of these companies, a committee by the name of Comité Colbert has decided that cooperativeness and camaraderie are just as lucrative concepts in the luxury markets, especially for France. To illustrate its belief in such concepts, this committee, founded in 1954, has created a platform for exchange with 75 French firms, all of which share a common goal: the continued promotion of France’s image. The Comité Colbert’s ability to even directly approach public authorities in France, the rest of Europe and abroad, makes the organization just as effective politically as it is economically.
Other countries, such as China and Brazil, have definitely taken notice of France’s reputation for such items, to the point where, as of now, 12% of the revenue of French luxury firms comes from the Chinese market; there has also been a 15% increase in sales from the Brazilian market, despite tariff issues, as well. In India, for example, there has been an unbelievable 20% increase in the consumption of French luxury items, and all in 2012.
As long as these French companies continue to work together, continue the traditions associated with the creation of their items, and all while keeping up with the latest trends and technological advances needed to promote such goods, the numbers already illustrated by the Bain & Company survey could potentially fade in comparison to just the thought of what the future holds for France.
Article published on August 14, 2013