After the closing on October 24th, French luxury giant Kering released its 2023 third-quarter financial report. During the earnings conference call following the report’s publication, Chief Financial Officer Jean-Marc Duplaix attended the analyst call, providing insights into the latest performance and answering questions. The focus of the discussion was on the flagship brand Gucci and the China market.
From Duplaix’s presentation, we observed two major trends among Chinese consumers:
1. In the third quarter, revenue contributed by the Chinese customer base increased by 20% year-on-year. Duplaix noted that Chinese consumers performed exceptionally well in the third quarter, and their growth may even be accelerating.
2. In the third quarter, 25% of Chinese customer demand came from customers traveling to destinations outside mainland China, such as South Korea and Europe. However, the majority of Chinese consumer spending still occurs within mainland China.
The performance of Chinese consumers, including Japan, has been a driving force behind growth in the Asia-Pacific region, with the jewelry business benefiting in particular.
Duplaix also acknowledged that the performance of the China market has not actually reached the levels predicted earlier this year.
| Source: Kering Group’s Third Quarter Conference Call, Reuters, Financial Times
| Image Credit: Brand Official Website
| Editor: LeZhi