Louis Vuitton, Chanel, Dior, Hermes and other luxury goods businesses made a total profit of more than VND3,800 billion last year, a sharp increase compared to the previous period.
According to data from Vietdata - a platform providing macro data, businesses and research on many fields - businesses distributing and directly trading luxury goods in Vietnam have a total revenue of nearly 25,000 billion VND and a profit after tax of more than 3,825 billion VND in 2022. These two figures increased by 67% and 2.7 times respectively compared to 2021. The business results of this group last year increased sharply compared to the previous period, with businesses all recording revenue of thousands of billions of VND.
The above figures are collected from 12 businesses that are distributing and directly trading about 34 luxury brands such as Louis Vuitton, Chanel, Dior, Hermes, Rolex, Calvin Klein, Charles & Keith, Zara...
In the group of enterprises distributing many brands including Mitra Adiperkasa, DAFC and ACFC (under IPPG), Tam Son, Maison, the enterprise with the highest business results is Tam Son with revenue of more than 4,745 billion VND and profit of about 849 billion VND in 2022. This is also the unit distributing the most brands including Hermes, Kenzo, Boss, Patek Philippe, Vacheron Constantin, Chopard, Bang & Olufsen, Lalique, Diptyque...
The remaining brands H&M, Gucci, Louis Vuitton, Chanel, Dior and Adidas all have direct business entities in Vietnam. Of these, Louis Vuitton is the unit with the highest revenue, reaching more than 2,360 billion VND. But the champion in terms of profit is Dior with more than 558 billion VND.
According to Vietdata, in the period 2017-2022, the number of super-rich people in Vietnam increased rapidly, the number of people owning net assets of over 30 million USD reached 1,059 people (latest data from Knight Frank - a real estate consulting group headquartered in the UK). In addition, Vietnam is also a country with a relatively young population with an average age of 32, considered a potential age in the luxury product consumption segment. In addition to strong demand, difficulties in traveling abroad also partly affect the domestic shopping needs of Vietnamese consumers today.
"Although luxury fashion is not aimed at the masses, only a small segment of customers are willing to pay, the revenue of these items is always extremely high," Vietdata analyzed.
Figures from German market research firm Statista also show that Vietnam's luxury market revenue is estimated to reach more than 957 million USD in 2023. Until 2028, the annual growth rate is predicted to be at 3.23%.
In a report on the luxury brand market in Southeast Asia, Mr. Nick Bradstreet - Director of Retail Asia Pacific at Savills, said that the economic downturn in China made brands realize that they could not rely on just one country but needed to diversify. "Southeast Asia is the obvious choice with prominent markets including Singapore, Thailand and Vietnam," he commented.
Globally, in 2021 and 2022, the world's leading luxury brands such as LVMH, Hermes... announced soaring revenue despite the risk of recession, thanks to the trend of compensatory shopping and the behavior of the rich who do not follow the laws of economics. However, the demand for luxury goods began to slow down in 2023. In the third quarter, sales of Louis Vuitton and Dior slowed down while Gucci and Yves Saint-Laurent even decreased.
Siddhartha
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