Luxury Cars and Emerging Markets = a Winning Product

A simply stunning video here from the FT which is perfect for students wishing to gather some evidence on industries, firms and brands that have thrived despite the prolonged economic downturn in developed economies.

Jaguar Land Rover ("JLR") is a stunning success story of a business that has thrived during the recession. As this video from the FT explains, so too is Rolls Royce motors. Both JLR and Rolls Royce have benefitted from strong demand in the luxury car market, particularly from China.

The rate of growth in demand in China is stunning - the market is growing by 36% per year and is on course to be the world's largest market for premium cars.

Why is demand so strong for luxury cars? Why has the market proved so resilient during the global economic downturn?

The video also points out that, whilst both JLR and Rolls Royce are owned by foreign investors, the appeal of the product is still based on "British" values.

The MD of Rolls Royce is interviewed during the video - is he right to be so optimistic about the prospects for his business? How will the competition respond?