Japanese earthquake puts luxury brand recovery at risk

JAPANESE CONSUMERS' love of iconic European brands have been behind a hesitant recovery in the sector but this may be blown off course by the recent tragedy. Luxury brands like Burberry, Hermes and Bulgari derive as much as 20% of sales from consumers in Japan and almost half of Japanese women own a Louis Vuitton handbag. Inevitably a disaster on the scale currently unfolding will have an impact on sales and throw into reverse the “early cycle” recovery seen in luxury goods this year. - 14/3/2011