Kering's profit warning contrasts sharply with the business results of LVMH and Hermes. LVMH and Hermes' sales have increased by double digits in recent quarters. of record high revenue and profits, the business activities of the group of luxury businesses in the coming time will likely have mixed developments. The business situation of luxury goods is becoming more difficult globally. UBS Bank predicts that revenue growth of the luxury goods industry will slow down to an average of only 5% in 2024 after continuously growing at 10%/year since 2016. Another factor that makes the profit difference between brands different is the customer base of each brand line.
Gucci targets young customers who are Ukraine Email List easily affected by the economic recession , while brands like LVMH or Hermes target older customers with good financial backgrounds. Gucci's strategy to target young customers has been successful for several years, however, in recent years it has been difficult due to global economic developments. The business prospects of the Gucci brand in the coming time are forecast to still face difficulties.
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