Luxury Lifestyle

The world market of luxury goods grows on the average by 8-10 % annually. And, according to Arno, Russia today is the fourth market of the industry after the USA, Japan and China. The Russian segment for last five years has grown three times and today is estimated in €2,5 billions. Russia and new growing economies in Asia, including China and India, soon will be the main ones for luxury goods’ manufacturers. Luxury brands become very popular in the Asian cultures. The brand carries the status, demonstration of which explains irrationality of a purchase.

In the luxury goods market Bernard Arno is an adherent of active expansion strategy. He is sure that such luxury brand as a cognac, will necessarily start to work after some time. Today the Frenchman owns such popular brands, as Givenchy, Dom Perignon, Christian Dior, Kenzo, Prada, Fendi, TAG Heuer, Donna Karan International, Guerlain and a number of others.

Demand for high-quality goods will fall only if the financial position of LVMH’s target consumer somehow starts to worsen. And here it is important for LVMH to guess where exactly to invest the money and where exactly catch the client. For example, the Swiss watch manufacturer TAG Heuer has declared its launch of expensive mobile phones.