Unemployment rates remain high in many parts of the world while entire countries including Italy, Greece and others continue to cut costs to save themselves from financial ruin, however while the global economy is in bad shape that hasn’t stopped luxury goods producers from making record sales.
According to the Wall Street Journal new millionaires and billionaires, especially from third world countries spent 2011 picking up items from Prada (33.1% increase in sales), Hermes (18%) and LVMH (20% increase). In the meantime luxury division PPR, owner of Gucci saw sales increase by
Sales have been so successful for PPR that the company plans to open 110 new stores in 2012 and half of those locations will be featured in Asia where new millionaires and billionaires are popping up each day.
According to PPR’s CEO:
“We’re lucky to be operating in a segment that has become very international. There’s structural growth in Asian markets, and it’s a certainty that for the next 10 years it will grow.”
The biggest complaint from Hermes? They couldn’t make enough Kelly and Birkin bags to meet demand while LVMH can’t make enough high-end cognac to please its customers.
It looks like the rich really are “job creators” after all, at least if you’re trying to create jobs in the luxury goods business.
Are you surprised to learn that so many high end goods are being purchased during a down economy?
