Multinational investment by luxury brands

Firstly, this paper introduces the development process of luxury goods, and then analyses the strategies of luxury brands based on the financial reports of three luxury brands from different countries, Hermes, Burberry, and Ferragamo from 2006 to 2021. With the support of the strategy, we know that luxury brands can expand their distribution network and brand influence through continuous multinational investment. Then, we move our attention to the main financial report data and FDI (Foreign Direct Investment) data of these three luxury brands over the years. By analysing the FDI data, we find that the most attractive countries for luxury brands to invest abroad are the United States and China, among which China’s luxury market share is the fastest growing. Next, we introduce a practical case of Hermès' investment in China. Finally, we analyse the features and functions of luxury goods to analyse the drivers of luxury brand investment location selection. In addition, we introduce the driving factors of the investment location selection of the automobile industry, and draw conclusions by comparing the automobile industry and the luxury brands.