Friday, October 26, 2007
China could outstrip the US as the premier marketplace
LVMH, Paris, are looking to China to provide customers in the future. Last week, the brand staged a $(US)10 million extravaganza on the Great Wall for its Fendi brand. The brand marched its collection across the 2,000 year-old structure, while its interlocking F logo was projected onto nearby mountains. The label already controls 10 boutiques in China, and has plans to add five more in 2008. The flagship Louis Vuitton brand controls 18 stores in the country, and plans to add another 10 through 2008. So far, those locations in Beijing and Shanghai are posting revenues comparable to major fashion centres, including New York, Paris and Rome. Last year’s revenues from the Asian market (excluding Japan), reached $19.23 billion. The company was one of the first to see the potential in the Chinese market and openned a Vuitton boutique in the basement of Beijing’s Palace Hotel in 1992. Company executives believe China could soon overtake the U.S., Japan and Europe markets for luxury goods.