The luxury goods companies have in recent years a significant increase in demand for products, especially among young Chinese exposed millions to them. High demand is expected to support their stocks even if the economic slowdown will have on the world? Dpnsithe society, among others, is a company that sells basic consumer goods such as food and cleaning house, so even during the economic slowdown, even recession, these products will be sold in terms of positive economic period since in order to maintain a reasonable lifestyle should continue to consume them. However, luxury products considered luxuries, the general opinion is that the recession will be bathot significant increase in sales of luxury companies. In practice, teaching in times of economic slowdown, some of the companies continues to maintain stability. Think about it for a moment, is likely to be a rich person really cares that the trade war between the United States and China and will taxes on import? Is really matter to him whether he buys Ferrari million $10,000 ttiiker in or whether he will buy Gucci bag will receive a pay increase on $250 Probably not. Sometimes even more as the cost price, the product will be exclusive only to those who can afford it, so that he may receive a higher value for consumers and demand him. If we look at it from the opposite angle, will harm the economy, the level of people who buy luxury products is likely to hurt less and therefore its sensitivity to purchase luxury products.
In recent years, even started a revolution. Not only the rich consume luxury goods. In fact, one of the growth engines of the luxury brands are actually millions of youngsters in China who migrated to cities, began to get drunk, and have become fans of fashion brands. Last year, the Chinese customer’s purchases accounted for about one-third of the total global spending on luxury goods. Furthermore, to encourage purchases of fashion brands in China, the Chinese Government has recently announced about downloading from buying many import products. Earlier, the price of luxury goods was much higher than overseas and limits the extent of Kenya. Reducing the gaps in luxury brands priced in relation to overseas, is expected to encourage the Chinese people to buy more and more may increase the rate of consumption of the Chinese out of the cake. Luxury products company in the world based on sales, is a group LVMH (LVMH Moët Hennessy Louis Vuitton), its financial results are considered compass luxury market trends. LVMH owns the giant Louis Vuitton leather and fashion house Christian Dior, Bulgari jewelry chain, the Cognac brand Hennessy and other luxury brands. If you look at its financial results just don’t see signs of a recession on the horizon. Not only did the company’s growth continues, while maintaining a high level of profitability, it also continues to broaden its activities into new areas such as hospitality and tourism. By providing customers with experiences that will form complete luxury for fashion and accessories they buy her own. Also even if you examine financial results in times of crisis like 2007-2009 years can see impressive stability in sales and profitability.