Asian demand takes luxury goods sector beyond ‘quirky' investment

ON SPECIALIST

Swiss & Global Asset Management's Scilla Huang Sun says luxury goods have not been as affected by rising inflation as other industries.

The luxury industry is growing and has been hitting the headlines over the last few months. Strong performance in recent years has attracted corporate interest. LVMH recently acquired Bulgari and took a big stake in Hermès. Moncler and Jimmy Choo shoes were both sold to private equity firms and Samsonite, Prada and Ferragamo all listed as publicly traded companies. Although many industries are suffering from rising cost inflation, leading to margin pressure and less profit, luxury stocks have been less affected by this. This is due to the fact most luxury products are made in Europe, ...