Louis Vuitton has closed three retail outlets in China, including the first store of the brand in this country in Guangzhou, writes Financial Times. The brand’s stores in cities of Harbin and Urumqi also stopped working.
Given the sharp decline in demand for luxury goods in China in the coming months closing of several Louis Vuitton stores is expected.
“According to my information, 20% of the Louis Vuitton store in China will disappear by the middle of next year, it will have to close the shop for about a month,” managing partner based in Shanghai consulting firm Emmanuele Hemmerle Ltd told the FT.
Currently in mainland China there are about 50 Louis Vuitton stores, many are in second-tier cities, suffering from pronounced economic slowdown.
Louis Vuitton will “continue to invest in China’s existing stores with the aim of improving the quality of service that we want to offer our customers,” read a statement released by the company on Monday. The press release also reminded the public that earlier in 2015 LV opened new stores in Beijing and Hangzhou.
According to the FT’s China Confidential survey, Louis Vuitton is the most desirable brand for 18.8% of respondents in China’s largest cities (Beijing, Shanghai, Guangzhou), while the figure is more than a double in the second-tier cities — 38.3%.