LVMH nears China major store openings as luxury demand rebounds
The opening of the new Beijing stores would be one of LVMH’s largest launches in recent years
[BEIJING] LVMH is set to open major stores in China in December and is considering further expansion there, said people familiar with the matter, as high-end brands see early signs of a sales rebound in the world’s second-largest economy.
Four LVMH labels – Louis Vuitton, Dior, Tiffany and Loro Piana – are slated to open multistory stores in Beijing this December after years of development, said the people, who asked not to be identified discussing private matters.
Some of the stores, located in Taikoo Li Sanlitun – a high-end shopping compound developed by Swire Properties – had seen slow construction progress amid a luxury sales slump, people familiar with the matter said last year.
The luxury conglomerate, founded by billionaire Bernard Arnault, is also in talks with Swire to open a new store for Christian Dior – its second-largest fashion label after Louis Vuitton – in one of the developer’s signature malls in Shanghai, the people said.
The store may open as early as 2027 in HKRI Taikoo Hui, a joint venture between Swire, and HKR International, the people added.
The luxury giant’s expansion comes as signs emerge that China’s luxury slowdown may be bottoming out. LVMH returned to growth in the third quarter, while Gucci owner Kering reported a smaller-than-expected sales decline, and global retail leaders have voiced cautious optimism about a recovery in one of their most critical markets.
The opening of the new Beijing stores, where construction works began around early 2023, would be one of LVMH’s largest launches in recent years. It will serve as a key indicator of China’s luxury recovery momentum after the industry saw sales plunge as much as 20 per cent last year.
The country’s economic outlook remains uncertain, with retail sales in September growing at its slowest pace this year.
Some of the people said that while the concept and details of the new Dior store in Shanghai are still under development, it is set to be adjacent to a mega Louis Vuitton space shaped like a cruise ship, which opened in the same mall in late June.
The 17,000-square-foot store – one of Louis Vuitton’s biggest in China – has sparked a buzz on social media and helped the mall double its retail sales in Q3, according to Swire.
LVMH is still considering further collaboration with Swire, including permanent and time-limited spaces as well as major events, some of the people said.
A strong sales rebound at Swire’s major malls across China has also helped boost confidence. Its major retail properties in Beijing and Shanghai returned to year-on-year growth in the first nine months of this year.
HKRI Taikoo Hui, for example, reported a jump in sales of about 42 per cent, compared with a 21 per cent drop over the same period last year. The gain was largely driven by the launch of the Louis Vuitton flagship store, the company said in a statement.
Following the success of the Louis Vuitton store, HKRI Taikoo Hui and its nearby shopping compound Zhangyuan have continued to drawn strong interest from key partners seeking to invest, a spokesperson for the two properties said. LVMH did not respond to a request for comment.
The Louis Vuitton store features an exhibition space and a cafe, highlighting luxury groups’ changing strategy in China to incorporate large-scale design theatrics and cultural attractions in their presences, as wealthy shoppers increasingly prioritise personal experiences and wellness over labels.
Swire is also working to expand Zhangyuan, another joint venture that has turned a 143-year-old historic compound in Shanghai into a cultural and retail centre.
The expansion of the project, located near HKRI Taikoo Hui in the financial hub’s core shopping district, is expected to be completed in late 2026 and is set to feature more LVMH presences, some of the people said.
Louis Vuitton currently operates an exhibition space in Zhangyuan while several LVMH brands, including Tiffany and Bvlgari, have also held exhibitions in spaces there. BLOOMBERG
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