Lure of luxury ebbs in market now 'saturated'

LVMH Moet Hennessy Louis Vuitton, the world's largest luxury group by turnover, said in its interim report released on Thursday that the group "continues to grow in Europe in a more difficult economic environment" and Europe had "good resilience" in the first half of 2013.

Kering's luxury division also saw an 8.7 percent revenue increase in Western Europe during the period.

"This revenue growth was achieved not only thanks to tourism sales but also as a result of sales to the region's local customers," the group said in its report.

Chinese tourists contributed a lot to the United States' and Europe's market recovery, business insiders said.

Chinese people spent 60 percent of their luxury budget overseas, the result of a stronger yuan and increasing outbound tourism, according to a luxury market report by Bain & Co, a US-based consultancy company.

The luxury groups are still confident about the second half of 2013.

Kering forecast further positive momentum in the second half.

"Despite an uncertain European economic environment, LVMH will continue to gain market share," the company said.

The group said that its confidence comes from "the numerous product launches planned before the end of the year and its geographic expansion in promising markets, while continuing to manage costs".

wangwen@chinadaily.com.cn