Knowing this, they took their chances and decided to suspend the sale of their goods to Russian buyers. Therefore, luxury brands like Hermes could only lose around 5% of their annual revenue if they pull out of Russian markets. The United States pulls in around $64 billion in revenue annually, with China topping at over $150 billion in annual revenue. Luxury sales in Russia only generate about $9 billion in annual revenue, which pales to the revenue generated in other nations. To understand the cause, we must recognize that the proportion of yearly revenue between these market giants is drastically different. One would expect the world market value of these luxury brands to plummet given these events, but the effects have been rather mundane.
Even for Russian elites, the prices are far too much to bother with now. Now, suppliers are schematizing proxy companies to get around this issue which has only driven the price of these illegal goods through the roof. The measure targets Russian oligarchs (the primary supporters of Putin’s regime) who frequent these high-end brands. Any luxury goods worth more than $1,000 per product are banned from shipment to Russia. Sanctions imposed by the United States also supported the decisions made by these companies. Companies like Prada, Moncler, LVMH, Kering, Richemont, and Chanel have all taken a hit from this conflict as they closed their stores in Russia following the invasion of Ukraine. The war in Ukraine has taken a sizable toll on the market value of luxury goods, and this isn’t just exclusive to Hermes. How the War in Ukraine Affected Hermes Investments Are Luxury Handbags Still a Good Investment?.How Hermes Continues to Succeed in 2023.Niloticus Crocodile Himalaya Birkin – $379,000 Fuchsia Diamond-Studded Hermes Birkin – $222,000 Blue Crocodile Hermes Birkin Handbag – $150,000 The Most Expensive Hermes Bags in the World.Faubourg Birkin – The Most Popular Limited-Edition Birkin Bag : $305 100 (sold in 2021) Himalaya Kelly – The Rarest Handbag $437,330 (sold in 2020) The Diamond Himalaya Birkin $500,000 (sold in 2022) The Sac Bijou Birkin $2 million (re-released in 2019) The 7 Most Expensive Hermes Bags Sold at Auction During COVID-19 & Ukraine War ( 2019-2022).How Covid-19 Affected Hermes Investments.How the War in Ukraine Affected Hermes Investments.
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