Sustainability Of High Trading Multiples In The Luxury Sector

The analysis of the luxury sector, for many economists, seems to be the real starting point for the achievement of financial success. Through the entire analysis the objective will be a complete understanding of reasons behind luxury appealing and the drivers that influence and sustain this sector.This work is divided in three parts. The first chapter describes and clarify the luxury industry and narrow the range of the entire analysis to the "traditional luxury". It is shown an introduction of main sector parameters and main drivers that, showing high level of correlation, are confidentially used to estimate luxury path.The second chapter has the aim of understanding the strength of luxury sector. Trying to find reasons behind all the interest shown and the appealing that make this sector a dream also for the financial world. With that aim it was implemented a wide analysis of main metrics.The starting point of the evaluation starts from two assumptions. The first is that to have a real perception it is necessary a comparison with other industries. While the second is that comparing industries it would have meant to generalize and lose part of the meaning of the analysis, so the approach used take as representatives of industries key players and compares their results.The further question is "What does make it sustainable?" The third chapter was in charge of this answer and, after a breakdown of luxury sales first geographically and than by nationality it was highlighted the big contribution of Chinese luxury consumers and the growing importance of Asian Tigers.