Louis Vuitton adds 1,500 jobs in France thanks to luxury boom
Luxury is in a good place. At least, that’s the message that Louis Vuitton, flagship brand of the world’s largest luxury company, LVMH, is sending. The iconic French company has announced that it’s creating 1,500 more luxury manufacturing jobs in the country in order to supply a boom in demand that seems to be worldwide. And, of course, one country is powering the luxury boom more than any other: China.
LVMH’s share price has appreciated by 46% year to date
Source: Yahoo Finance
Louis Vuitton CEO Michael Burke said that the company was committed to keeping the majority of its supply chain in France. That’s good news for fans of the brand, who can rest assured that the wares they’re purchasing will retain the master craftsmanship for which Vuitton is famous. And it is good news for French unemployment, as the luxury sector has been a bright spot this year. Burke explained his decision to stay French to reporters: “If we let the craftsmanship leave, even to places as close as Italy, I think it’s inevitable that the minds, the creativity in the sector will follow.”
Despite worries over the Chinese economy and the current trade war between China and the US, Burke described Chinese demand for Vuitton’s goods as “exceptional”. The country helped to fuel a 20% rise in sales of fashion and leather goods last quarter for Vuitton’s parent, LVMH.
Burke also pointed to Vuitton’s credentials as a “green” brand, noting that data crunching and faster supply chains have made it less wasteful than ever before in its more than 400-year history. He said: “We used to forecast – now we react. We have the highest sell-through of any brand in the world. We destroy less than anyone.”
Dominion holds LVMH in its Global Trends Luxury Fund.
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