The growing prosperity in the emerging markets has brought luxury goods companies very good business in recent years.

The Chinese market was particularly lucrative.

With the Corona crisis, however, the industry suddenly had to deal with scenarios that it was previously unfamiliar with.

Shop closures and contact restrictions dampened the mood, and there was no tourism, on which the industry is particularly dependent.

Because vacationers are often particularly willing to spend money when it comes to expensive souvenirs for their loved ones at home.

In the spring of 2022, this concern seems to have been ticked off by the top companies in the industry.

Companies like the French LVMH group seem to have weathered the COVID-19-related dip faster than others.

Industry leader with brand diversity

The industry leader, known for the fashion and luxury goods brands Louis Vuitton and Christian Dior, the watches from TAG Heuer and Hublot, the jewelry chain Tiffany or the champagne brands Moët & Chandon and Dom Pérignon as well as Hennessy cognac, was able to take part last year come up with new records, including sales.

Revenues climbed 44 percent to 64.2 billion euros last year, while net income more than doubled to 17.2 billion euros.

This is one of the reasons why shareholders treated themselves to a dividend of EUR 10.00 per share at the Annual General Meeting last month for the 2021 financial year - after EUR 6.00 in the previous year.

This year, the development of distributions should also be good.

Despite the war in Ukraine and the resulting negative impact on the global economy, as well as new corona lockdowns in China, LVMH had a strong start to 2022.

In a year-on-year comparison, group-wide sales in the first quarter increased by 29 percent to 18 billion euros.

Organically, i.e. adjusted for exchange rate effects and acquisitions, the increase was 23 percent.

All divisions, with the exception of wines and spirits, were able to come up with double-digit growth rates.

Supply chain problems made themselves felt there.

The most important division of the company – fashion and leather goods – meanwhile showed particularly strong growth.

The increase in sales was 35 percent (organic: plus 30 percent) at 9.1 billion euros.

Digitization is changing the luxury goods industry

LVMH isn't just concerned about the impact of COVID-19 and global politics on business right now.

Digitization is also changing a lot in the luxury goods industry.

Many developments in the area of ​​e-commerce were additionally pushed in times of the corona pandemic.

Accordingly, LVMH is also driving the digitalization of its brands.

The cooperation with the Japanese Softbank fits into this picture.

One of the aims of this strategic partnership is to further improve the customer experience through the use of technology.

In the future, thanks to 5G and virtual reality, customers will be able to move around in virtual shops in real time.

LVMH is even open to the Metaverse.