It appears that I may have insulted and offended some of our readers yesterday in my post about Chanel’s price increase. In hindsight I probably should have substantiated my statements a bit better.
Here are a few more facts: China’s luxury market is growing by 50% to 60% a year and already represents 12% of world demand for luxury goods. Goldman Sachs predicts that by 2015 China will reach a 29% share of all luxury goods sold worldwide, which will surpass Japan as the world’s top consumer luxury market.
According to LVMH’s 2010 interim financial report, revenue stayed the same or decreased in every part of the world besides China where revenue grew by 2%.
Interestingly enough, China is the world’s number one producer of counterfeit products. Chinese women are very proud of buying authentic merchandise and will pay a 40% to 50% premium (over NYC prices) to assure they have the real thing. Of course, there are no conspiracies and I apologise for my sarcasm and hyperbole.
Furthermore, no country or culture should be reduced to a food– even if it is excellent.