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    Will LVMH Group Continue To Invest In Chinese Stores And Stop Rumors?

    2015/11/18 22:31:00 36

    LVMHClosed Shop RumorsInvesting In China

    In response to the news of Louis Vuitton Louis Weedon closing the Chinese store, LVMH, the French brand parent company, told Bloomberg that the French brand will continue to invest in the Chinese store network, which will open two new stores in China next year while renovating another two, but the spokesman refused to comment on the store's news.

    In addition, in view of the shrinkage of China's stores in the luxury sector, the Burberry Group PLC (BRBY.L) Bo Bo Li group said that China's strategy will not change and will continue to invest. However, the British brand has just announced that its flagship area in Taigu square in Hongkong has just been cut down, and the two tier has changed to another level. In addition, Gucci Gucci parent Kering SA (KER.PA) group declined to comment on Italy brand's store strategy in China. At present, the brand is mediating with the Alibaba group on the issue of sale.

    Gucci Gucci and Burberry are 57 and 55 stores in mainland China respectively.

    In addition to the point of view, Louis Vuitton Louis Weedon allegedly opened a store in Beijing and Shanghai earlier this year.

    The action is consistent with earlier No Agency founder Tang Xiaotang on Guangzhou Libai square.

    Guan Dian

    Tang Xiaotang commented that China's overall economic and consumer environment needs to consider the cost of sales and the more conservative brand strategy.

    However, he said that the status of China's luxury market will not be shaken. Even if sales continue to fall, luxury goods will still play a showcase role in the Chinese market. The core business district of the first tier cities is still the best choice.

    The news of Louis Vuitton's closure of Chinese stores continues to ferment, causing concern. The media quoted Shanghai sources saying that LV will close about 20% stores in China by next year, and will reduce its 50 stores in the Chinese market rapidly by closing down a store a month.

      

    Louis Vuitton

    Louis Weedon and her parent company LVMH Mo t Hennessy Louis Vuitton SE (MC.PA) MOET & CHANDON Hennessy LV did not respond to the news.

    Last week, a number of media reports in Guangzhou reported that LV's store in Libai square in Guangzhou expired at the beginning of this month. As the store is the earliest store in Guangzhou, LV's industry has been closely watched.

    Luxury goods based in Guangzhou

    Apparel retailing industry

    Tang Xiaotang, founder of No Agency, a consultancy, said that the LV store in Libai square in Guangzhou was caused by the consumption of gift cards caused by anti-corruption, the eastward shift of Guangzhou East business circle, the decline of luxury goods in the Chinese market, and the adjustment of collective stores.

    In addition to Guangzhou, LV is also said to have closed its stores in Urumqi and Harbin.

    The financial times also quoted a research institute in the US think tank as saying that optimism caused luxury investment in the Chinese market, while most of China still had a long distance from the middle class.

    However, this analysis is doubtful. Many investment banks earlier reported that China's middle class population has exceeded 100 million, and it is the most populous country in the middle class. In addition, according to No Agency's report last month, although the stock market crash has caused a certain blow to China's middle class consumption this year, and partly affects luxury consumption, the consumer market in China's luxury market is more extensive than that of the whole world. It is not only restricted to the rich and middle class, including some beginning workers and middle and low income groups, but China has more luxury consumption desire and practical actions than the rest of the world.


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