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Investing in Luxury in 2023

Updated: Apr 17


Aicha from Vision Factory

Author: Aicha Bakayoko

Date of Publication: 30/05/2023




This post may contain affiliate links, which means I may receive a small commission, at no cost to you, if you make a purchase through a link


Luxury goods are one of the most successful industries worldwide and have a bright future. Actually, it is a constantly growing sector. The luxury goods market jumped to US$330 million in 2022 and is expected to grow by 4% by 2028. This sector is driven by factors such as the Chinese economy, U.S. demand, and online shopping, allowing it to maintain its market position.

Gucci

Luxury goods statistics

Is investing in this sector a good idea?


Stability


Investing in luxury goods or stocks is generally not highly considered by people. Instead, they tend to invest in real estate. But given the growth and importance of the luxury industry in the world, it is worth considering. In fact, investing in the luxury industry can be used as a way to keep money, provide stability. Also, it enables you to earn money faster than real estate or other investments in the stock market.


Resistance to crises


Moreover, iit usually only takes a few years to see a return on investment in the luxury sector. Apart from that, this sector is resistant to crises and difficulties thanks to its customers. The same cannot be said for real estate investment, though. This is because it has already experienced many periods of crisis such as the subprime crisis in 2008.


Profits


Therefore, investing in luxury can be safer because it has a significant value that will increase the price of the assets/stocks over time. As a result, this will allow you to make profits. And it is even more interesting for people living in countries where the economy is unstable.


TOP 3 Luxury companies and groups to invest in:


1) LVMH Group

As we all know, LVMH is the number one leader in the luxury industry with over 75 Maisons in 6 different sectors. To name just a few: Wines & Spirits, Fashion & Leather Goods, and Selective Retailing. Thus, investing in its shares and assets is an excellent opportunity to make profits.


2) Kering Group

Kering is a global luxury group that encompasses emblematic companies in the fields of fashion, leather goods, and jewelry. For example, we can mention Gucci, Saint Laurent, Bottega Veneta, and Balenciaga. Therefore, it is necessary to include this group if you want to invest in luxury.


3) Hermès

Hermès is a highly sought-after luxury brand with a reputation for quality, making it a lucrative investment opportunity. This is because there are a lot of people looking to diversify their portfolios with high-end assets.


How to invest in luxury products


First of all, you need to do some research to know which sector you want to invest in (watches, wines, clothes, cars, hotels...). Then you have two options:

1. You buy it directly from the company. You should do so, without going through an intermediary or another company specialized in investment.


2. You buy it through an intermediary and not from the company you want to invest in. In this case, you should also do some research to choose the best intermediary. For instance, we have James Edition, Luxify, or even Harrods.


Disclaimer: If you are interested in investing in luxury, it is very important to do thorough research before making any investment decision. You must consider several factors such as the economy but also the opportunities and threats associated with the luxury industry. This way, you can choose the best option for your trading.




 

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