Hi! I am currently revising my paper that is based on the valuation of LVMH and why it should opt with focusing on the Chinese luxury industry in comparison to the west in order to generate more profit/reap the most benefits out of it. My professor has recently attached a comment to my paper saying: "You will need to work on linking key issues in your SWOT and story to the financials."

However, I am struggling on how to connect ideas to my tables and figures which I have attached below. Based on these figures, could I get help as to how the financials may influence the valuation and how it may influence the decision to focus on the Chinese market? In addition to that, my professor also mentioned that the "Analysis or explanation of the financial ratios (figures below) missing." - based on these figures, what can be inferred? Thanks in advance!

\fTable 4. SWOT Analysis of LVMH" Wide portfolio of products ranging from fashion and accessories to wine and spirits (only one in industry to provide all of these at once) Strong brands and high quality and stable yet diversied clientele base Leading market position in luxury products leading to high brand recognition and relative nancial strength and stability Innovative and visionary - business lays emphasis on consistently working Products are frequently viewed as overpriced - depriving the business of potential new clientele Minimal jewelry offerings in comparison to its competitors such as Richemond Lack of advertisement - LVMH tends to primarily market its products on its own channels, making it hard for consumers to receive information Competition that is growing stronger as each year passes as seen in the gures Collaboration with other brands - this has been observed through a partnership with Italian label F endi for instance, minimizing potential competition Focus on Asian markets - with China's economy continuing to grow and their love for luxury, this should be capitalized on Should continue with their focus on innovation to create more sustainable options in the future and thus win more clientele through this determination Continue to expand as they have been doing throughout the past years - this is Changes in consumer trends and preferences - as the market is still relatively niche, this may endanger their ability to win new clientele Fierce competition - this has been elucidated above, but is becoming more of an issue as more luxury brands are founded Increased popularity in shopping for cheaper alternatives for the same quality or potentially even better and sturdier, such as Zara Economic downturns, such as observed through the Covid-l 9 pandemic - forcing a on diverse offerings above (e. g. from frequently done large chunk of its Kering) through obtaining clientele base to go new 'maisons' or into a period of brands economic reservation Source: The Financial Statement Analysis of LVMH (2022) and The Strategy and Competitor Analysis of LVMH (2022) Figure 3. Trend of Financial Ratios of LVMH, Richemont and Kering based on its ROEs Trend of Financial Ratios of LVMH, Richemont and Kering based on its ROEs 40,0 35,0 30,0 25,0 20,0 15,0 10,0 5,0 0,0 2018 2019 2020 2021 2022 -LVMH Richemont Kering Source: Morningstar Operating Performances (2023)