Economic crisis and the impact on the global retail industry.docVIP

 PAGE \* MERGEFORMAT 5 Economic crisis and the impact on the global retail industry Author: get Diligence Consulting Real Estate and Business Research Division As the economic crisis deepened, the global number of major economies like the United States, Japan and other countries have an economic recession (according to the World Bank, the economic recession is defined as two consecutive quarters of negative growth recorded in GDP), in the economic environment facing the cold of winter, the retail business performed? A sharp contraction in U.S. and European markets, Asian markets slowdown Most affected by the economic crisis, European and American regions, the retail business were hit hard. Europe and the United States the major retail brands, whether it is a luxury brand or retail brand sales in both the public decline situation. Downward trend from the third quarter of 2008 had been beginning to show. LVMH Group, as the world’s leading luxury brands, the growth rate of the first half of 2008 remained at 5% or more, the growth rate of the second half of 2008 fell to 3.12% and 3.95%; in 2009’s first quarter sales growth is only 0.4%. Decline in sales growth is increasingly apparent. The regional market, the United States, a significant decline in the Japanese market. In 2008, there were double-digit growth in the Asian market in the first quarter of 2009 increased only 6%, but relative to other regional markets, the growth rate of 6%, enough to have become the bright spot. Tiffany as a world-renowned jewelry brands, leading to decline in the U.S. market operations (the United States about global business operations 50%) in 2008 sales growth rate showed a clear downward trend, from the third quarter of 2008, negative growth in sales in the fourth quarter of 2008, even more than the same period last year fell by 20%. Main European and American markets Esprit (European and American markets accounted for more than 80% of the sales), the growth rate started t