US retailers look at emerging markets overseas
As the United States economic slowdown continues, retailers are seeing a boom in emerging markets overseas. Luxury brands such as Louis Vuitton and L’Oreal are seeing a large demand from China.
The second-quarter revenue of L’Oreal climbed by about 12 percent this year, leaving the Paris-based company with 5.57 billion euro in revenue, Bloomberg reports. Other luxury brands such as Gucci and Givenchy and Fendi are also seeing profits skyrocket in the Asian markets.
“In a world where companies are struggling with diving European demand and media are awash with bad news, luxury-goods companies like LVMH and PPR seem to be coming from another planet,” Luca Solca, global head of the European equities department at CA Cheureux, told Bloomberg.
Bain & Co, a global management consulting firm, estimates that the luxury market in Asia-Pacific could expand by as much as 16 percent this year, the news source reports. These estimates exclude China, which is forecast to expand by as much as 22 percent.
As these companies begin to prepare for growth in the Asian markets, they could benefit from the retail solutions provided by Retail Pro. Retail Pro’s retail management software and store merchandising applications are designed to help retailers track sales and inventory.
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