Louis Vuitton has closed 3 stores in China due to demand reduction

Moscow. November 16. Louis Vuitton has closed three retail outlets in China, including the first store of the brand in this country – in the city of Guangzhou, according to Financial Times, citing informed sources.

Also stopped working brand shops in Harbin and Urumqi. Amid a sharp decline in the demand for goods of class “luxury” in China is expected to close several stores of Louis Vuitton in the coming months.

“To my knowledge, 20%, Louis Vuitton store in China will disappear by the middle of next year, that is to close will be about the store per month,” said FT managing partner of Shanghai-based consulting company Emmanuele Emmanuel Hemmerle Hemmerle.

Currently in mainland China there are about 50 stores Louis Vuitton, many are in the second-tier cities, suffers from a pronounced slowdown in economic growth.

Louis Vuitton “will continue investing in China, there are existing shops, with the aim of improving the quality of service we want to offer our customers”, said in a statement the company released on Monday. The press release also reminded that earlier in 2015, new shops were opened in Beijing and Hangzhou.

According to a survey by FT China Confidential, in the largest cities of China (Beijing, Shanghai, Guangzhou) Louis Vuitton is the most desired brand for 18.8% of respondents, while in the second-tier cities this figure is higher more than doubled to 38.3 per cent.

LVMH Moet Hennessy Louis Vuitton, controlled by French billionaire Bernard Arnault, is the world’s largest manufacturer of luxury items, including accessories (Louis Vuitton and Fendi), cognac, champagne (Moet & Chandon, Dom Perignon, Veuve Clicquot and Krug), watches (TAG Heuer, Hublot, Zenith), jewelry (Bulgari, Chaumet, Fred, as well as a joint venture with De Beers), clothing (Givenchy, Loewe, Donna Karan, Marc Jacobs, etc.), perfumes and cosmetics (Christian Dior, Guerlain, Givenchy, Kenzo, Sephora chain of stores).

The number of stores of the company in excess of 3.7 thousand, the number of employees more than 120 thousand people, more than 80% of whom work outside France.