Some are predicting that the market for luxury goods will make a comeback. “A lot of the companies had a weak first quarter because of the severe impact of 11 September on tourism,” says an analyst at Citigroup. “The fact people are going back to more normal lives will provide a substantial level of growth.
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Vuitton was already the world’s biggest luxury brand when Arnault acquired it in 1989. But the previous owner, France’s Racamier family Prada Outlet, had focused mainly on building a Japanese clientele that accounted for 75 per cent of sales. Then, in the late 1990s Prada Outlet, luxury accessories became red hot, with long waiting lists for bags such as the Kate Spade tote and the Fendi “baguette”.
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