How Luxury Companies Make Money

May 13, 2026, 11:05
ChinaAnalysis

Introduction

Luxury companies are changing. They must choose between fast money and long-term plans.

Main Body

Bernard Arnault leads LVMH. He says quality is more important than fast money. He believes good products make customers trust the brand for many years. Many people in China and Europe are buying fewer luxury goods. There are also problems in the Middle East. This makes the market difficult for all companies. Some companies are changing their plans to grow. LVMH and Kering are making new designs. They want to be strong again. Hermes is also famous, but some experts are worried about its future growth.

Conclusion

Luxury companies need good plans and high quality to succeed again.

Learning

⚡ THE 'S' RULE

Look at these words from the text:

  • Company →\rightarrow Companys
  • Plan →\rightarrow Plansn* Product →\rightarrow Products

What is happening? When we have more than one of something, we simply add an -s at the end.

Example from the story: "Luxury companies are changing." (There are many companies, not just one).

🛠️ BUILDING BETTER SENTENCES

To reach A2, stop using only small words. Use Adjectives (describing words) before the object.

  • Instead of: "Money"

  • Use: "Fast money"

  • Instead of: "Plans"

  • Use: "Long-term plans"

  • Instead of: "Products"

  • Use: "Good products"

The Pattern: Describing Word →\rightarrow Thing

Vocabulary Learning

good (adj.)
describing something that is positive or beneficial
Example:The good quality of the product made customers happy.
many (adj.)
a large number of
Example:Many people attended the event.
people (n.)
human beings in general
Example:People are sharing their ideas online.
buying (v.)
the action of purchasing
Example:She was buying a new dress at the mall.
market (n.)
a place where goods are bought and sold
Example:The market is busy with customers.
difficult (adj.)
hard to do or understand
Example:The math problem was difficult to solve.
companies (n.)
businesses that sell goods or services
Example:Many companies are hiring new staff.
plans (n.)
ideas or strategies for future actions
Example:He made plans to travel next year.
grow (v.)
to increase in size or amount
Example:The company wants to grow its sales.
new (adj.)
recently made or discovered
Example:She bought a new phone.