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Louis Vuitton to close stores in China

Nov 23, 2015 China
Louis Vuitton to close stores in China
The France-based luxury house is in the process of closing three stores in China, including an outlet in the southern city of Guangzhou. Several sources anticipate this trend will continue across the country in coming months
According to news not confirmed yet by the brand, Louis Vuitton is closing stores in China and planning to reduce its distribution network in that Asian country. At the same time, some of the stores might be moved or refurbished.

To avoid an overexposing of the brand is being pointed as the main reason for the decision, as market dynamics are in constant change and an increasing number of Chinese consumers look for other markets to shop. The weak Euro and Yean are attracting more Chinese shoppers, who take advantage of the currency exchange winnings, as it becomes cheaper for them to buy abroad.

The government campaign against extravagance and corruption, launched by President Xi Jinping in late 2012 has also impacted luxury goods spending in the region, in a movement that spread outside the borders of China. In Hong Kong, for example, the famous shoemaker TAG Heauer recently closed a store and Burberry has announced the intention to reduce the size of its local store.

Also, famous luxury brands, such as Armani, Hermes and Versace have been reducing their distribution network in China and analysist anticipate this trend will continue in the short term. 

The closure of stores from high-end brands in China are the latest symptom of the slowdown in the country’s luxury sector, which has been hit by economic deceleration and a three-year-long anti-corruption and anti-extravagance government campaign.

Image credits: Louis Vuitton

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