The arrival in Hainan of a flagship store of the Lvmh Group’s flagship brand has been announced by the new upscale MixC Haikou shopping center. Louis Vuitton could thus benefit from the growing number of Chinese tourists visiting this island in the Middle Kingdom, a duty-free paradise.
It has become “the place to be” in China since the pandemic. Louis Vuitton is about to open a two-story flagship on Hainan Island, a duty-free and local tourism paradise in the Middle Kingdom, nicknamed the “Chinese Hawaii.”
Several media outlets concluded this after the high-end shopping mall MixC Haikou opened last June in the island’s capital and made a prominent post on social networks under the title “Hello @Louis Vuitton.” This was none other than a photo of a hoarding displaying the House’s latest campaign, showcasing its custom trunks photographed by Viviane Sassen in the Chilean desert.
Of course, Lvmh’s flagship company has not confirmed the information. But it is nevertheless more than likely, even if the world’s number one luxury brand is known for its strict distribution policy and its refusal to discount its products.
Popular tourist destination
But several elements are likely to make him change his strategy in China.
First, Hainan Island has become a very popular destination for the Chinese during the pandemic, depriving them of tourism outside their borders.
And even if they can travel abroad again since the beginning of 2023, the Chinese might still be very tempted to continue visiting the island. To further enhance its attractiveness, Hainan will indeed become a totally duty-free zone in 2025. A duty-free zone that has been confined to the south of the island until now.
A high-end positioning
According to several sources, Louis Vuitton is expected to increase its prices by 20% in China in 2023. But by setting up shop in Hainan, the company is not planning to “Uberize” its offer, far from it… Set up by the Hong Kong giant China Resources Land, the shopping center it has chosen to set up is the first to be positioned so high end on the island…
With this new location in Hainan, via store openings, Louis Vuitton will continue its conquest of second and third-tier cities in China, such as Fuzhou, Guiyang, and Nanning. At the same time, it is continuing to expand and test new retail formats in first-tier cities. On the menu: the inauguration of a vast VIP lounge in Shanghai’s Plaza 66 and Beijing’s SKP center, a restaurant called The Hall in Chengdu’s Sino-Ocean Taikoo Li, and a showroom presenting its Objets Nomades collection in Shanghai’s historic center, Zhangyuan Shikumen.
Featured photo : ©Presse