The most expensive brands in the Greek market, Hermès, Dior, Prada and Louis Vuitton, appear to be doing well in regards to sales and profits, despite the financial crisis that has troubled the country for more than 5 years. It’s worth noting that although most of their profits come from their sales to Greeks, they have mostly benefitted from Athens’ tourism.
It is evident for anyone walking in downtown Athens that a significant part of the increase in sales of luxury brands is due to tourists from China, Russia and the Middle East. This new wave of tourists, which is increasingly visiting Greece, combines entertainment with shopping as opposed to the more “traditional” Western Europeans who like to visit Greece for its tourist attractions.
However, the performance of luxury fashion houses in Greece shows that they were able to withstand the financial crisis and are now starting to recover.
Hermès is celebrating its eighth year in the Greek market. Last year, the company managed to increase their profit and turnover in Greece. The profitability of Hermès’ two shops in Athens reached 850.000 euros in 2013 compared to 531.000 euros in the previous year.
After the company’s reconstructing moves, it appears that Louis Vuitton’s subsidiary in Greece was able to reduce its losses by half. Louis Vuitton Hellas losses amounted to 381.000 euros in 2013, a significant drop in comparison with 2012 when its losses reached 1.1 million euros.
Prada still holds a special place in the heart of Greeks. After seven years of operation, Prada’s sole store in Greece witnessed an increase in sales during 2013, reaching 5.5 million euros, compared to 4.7 million euros in the previous year. Meanwhile, the company’s profitability remained stable at 150.000 euros.
Finally, Dior Grèce has also managed to reduce its losses while increasing their turnover at the same time. The French fashion house reduced its losses to 178.000 euros in 2013 from 404.000 euros in the previous year.