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The luxury market in France in particular did not decline. Old Europe was again a market to cultivate during the period of financial turmoil. Brands that were present in small European cities reaped the benefit of their regional strategies. Hermès, Chanel, Louis Vuitton, Armani, and Tod's were among the companies who were not significantly affected due to their sales in Europe. This proved that Europe has been and still is the most important market for luxury, and may continue to remain so, for two reasons. First, the cultural heritage of Europe is linked to luxury. Europeans love luxury goods and have the buying power to be the most stable luxury goods consumers of the world. Second, Europe remains the number-one destination for tourists, France in particular. It meant that though the luxury business was going through the global financial crisis, the continuous flow of tourists who spend a considerable proportion of their budget buying luxury goods offset the effect of the crisis. For example, the Chinese spent nearly 1,500 euros per person annually. At the Galeries Lafayette, 60 percent of the total business came from tourists, and within this 60 percent, between 60 and 80 percent are Chinese tourists.

       China

      Asia overall, including Russia, China, India, Hong Kong, South Korea, and the Middle East, came to the rescue of most luxury brands after the global financial meltdown. During the recession phase, China became the winning horse that reported a growth of 20–30 percent for most luxury brands. Richemont was one brand that relied heavily on Asia Pacific consumers to help buttress its sales. The same held true for Hermès, which also sold heavily in Asia. They were saved, although the crisis affected all the actors in the luxury sector, at each level. China alone during this period could show the difference it made to the top line of a luxury company. When the distributors in the United States and Japan nearly collapsed, when Neiman Marcus reported a 20 percent decline in sales, stores in Beijing and Shanghai were reporting sales growth of up to 30 percent. Businesses in mainland China, Hong Kong, and Macau were flourishing.

      China emerged as the luxury market in which to have a presence, a market that didn't exist 10 years before in 2003. China saved many brands from sliding into the red. During this period, Kering witnessed double-digit growth in China. Richemont and Zegna, which were otherwise losing money, enjoyed healthy growth in China. Brands like YSL regretted not maintaining showrooms in mainland China. The Ferragamo family trusted Chinese women to continue demanding statement handbags, which they continued distributing despite an otherwise gloomy environment. Some brands, on the other hand, were apprehensive about the Chinese miracle. Patek Philippe was cautious with China, as it felt that the country could impose sudden import duties or levy taxes, which could destroy the business instantaneously. Despite the deepening of the European debt crisis and the slowdown of China's economic growth in 2013, China represented around a quarter of global luxury purchases.

       United States

      The American market represents a great untapped potential for European luxury brands, as only 17 percent of the luxury goods sold in the United States are personal luxury goods, compared to 47 percent in Italy, 25 percent in Japan, and 25 percent in China. However, it is worth noticing that the U.S. market alone drives 70 percent of Ralph Lauren's and 55 percent of Tiffany & Co.'s worldwide sales, whereas this market accounts for only 15–25 percent of the worldwide sales of most European brands such as Hermès. Moreover, it can be observed that luxury sales are high in areas with a large Latin American population due to this group's appreciation of personal luxury goods. Thus, the American market offers a promising outlook for European brands if they manage to exploit the potential.

      The U.S. market over the years was always open to brands that had the capacity to invest, to persevere, and to face conflicts. It remained a difficult market that required a lot of time, energy, and resources. Luxury brands suffered in the United States. For example, Dior went in the wrong direction, running after licenses, opening everywhere, and lost money. Fred Segal, which opened in Los Angeles, could not meet its overhead costs and was acquired by LVMH. But the U.S. market has strong potential in the long run in many cities besides expensive centers such as New York, Los Angeles, and Miami. This is the reason why luxury brands should ask the question, “To be or not to be in the United States” – Leonard Fashion answered “Not to be.” They were right. Hermès, LV, Cartier, and Chanel succeeded in the United States, competing with Coach, Ralph Lauren, and Tiffany & Co. The U.S. brands had hundreds of stores, a very different tactic from the European shopping experience. Americans do not yet have the taste for luxury; they have a long way to go, and apart from two or three main cities, the interior of America is not ready to understand the French or the Italian luxury world. It will take time and effort to develop a customer base. It is, however, a market full of promise. All the factors to succeed in the United States are there. It is a stable and rich country, and the only country where a great number of women are millionaires.

       Africa

      The Northern African market also experienced crises. The most notable local crisis was the Egyptian revolution in 2011 and the Arab Spring. Burberry and Ferragamo stores were closed permanently, while the companies that remained open watched as sales declined up to 70 percent. One reason was that wealthy customers were the first to leave Northern Africa during the unrest. This was corroborated by the fact that the occupancy in luxury hotels such as the Four Seasons, Kempinski, Hyatt, and Sofitel dropped by 30 percent. However, due to democratization of the luxury industry, perfume sales in Africa were increasing at a rate of 25 percent, due to licenses from Gucci and Dolce & Gabbana. It has also been predicted that distributor sales for perfume will reach $100 million in the coming decade. Niche brands have started to make their mark in Africa. For example, Vlisco, a luxury textile brand from Holland engaged in textile wax, has long been successful in Ghana. Soon the entire continent of Africa will be a promising market for luxury brands.

      Effect of Crisis on the Luxury Industry

      The luxury world was a place where no one expected to perish. And then suddenly Christian Lacroix rang its bell – investors collapsed in the face of the coming of Louis Vuitton and Céline and were obliged to leave the company when the shareholders of Escada refused to inject the fresh capital required to turn around the company.

      On the other hand, consider the resurrection of the legendary Italian haute couture house Schiaparelli, known for the introduction in the 1920s of women's shorts, colored zip fastenings, and catwalk shows. After being shut down since World War II, it was repurchased in 2009 by Diego Della Valle and relaunched in 2012. Diego Della Valle, the chairman of Tod's Group who also revived the famous brand Roger Vivier, has brought Schiaparelli back on the stage of the fashion business after more than 60 years. This is not the only case in the luxury world. The almost immortal vitality and endless potential of a luxury brand can never be compared to any other normal brands.

      The crisis was a wake-up call for the luxury industry. All métiers were hit by the 2009 recession but not at the same level. The métiers reacted in different ways. Watches were showing the most profound weakness, decreasing in all markets to the tune of 20 percent, which scared the Swiss and most other brands. Jewelry followed with a decrease of 15 to 20 percent. Arts de la table fell at least 20 percent or much more. Ready-to-wear for women and men fell 10 to 20 percent depending on the brands, and even perfumes fell between 7 to 15 percent. It affected L'Oréal, Estée Lauder, Clarins, and their competitors. The most resilient were leather goods, which explains the consistency of Louis Vuitton, Goyard, Hermès, and, within the brands, Chanel, Gucci, and Dior bags and other leather goods.

      Overall, the watches and jewelry segment faced a mixed reaction. While the recession was known to hit the watch industry the worst, some people still invested in the Rolex brand in times of crashing stock markets and devaluing currency. Luxury houses like LVMH were known to have fared better than the likes of Richemont, because LVMH, through TAG Heuer, invested in hard luxury versus Richemont, which focused on soft luxury. Brands like Hermès, Swatch, Chopard, Hublot, and De Beers faced declining profits, whereas Dior fared well in the watches and jewelry sector. However, industry figures depicted a decline of 31.9 percent in June 2009 and a slowdown in the summer of 2013 due to unfavorable economic climate in Europe and in China. Swiss exports of watches declined, indicating that it was an industry-wide phenomenon.

      For the wines and spirits sector, brands like Diageo, Moët & Chandon, Pernod Ricard, and

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