The writing was on the wall last year as Chinese luxury consumers were vastly purchasing luxury goods. But today when Swiss luxury goods maker Compagnie Financiere Richemont reported earnings with a 23% increase for the quarter ending in December for 2010, Chinese love of luxury brands became more relevant.
No secret that Chinese heart Cartier and Montblanc which Richemont is the mastermind behind these brands. According to Richemont the demand from Asia for Cartier and Montblanc resulted in their Q3 growth in revenues by one third to $2.8 billion dollars.
Richemont is the world’s second largest luxury goods group, behind French rival LVMH group. LVMH is the leader of luxury brands operating Moet and Dom Perignon, Hennessy, Donna Karen, Fendi, Givenchy, Louis Vuitton, Dior, and Tag Heuer Watches.
The Givenchy luxury brand for LVMH will serve as a brand strategy because they are targeting the growing upper-middle-class burgeoning in Beijing, China.
One thing for certain Chinese people sure do heart luxury brands. China is now the world’s second largest purchaser of luxury goods, making China a target for luxury brands worldwide.