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Louis Vuitton<\/strong> is known for managing its distribution with an iron fist and never offering discounts on its luxury goods. Nevertheless, according to several sources, executives are reportedly exploring the possibility of opening a duty-free store in Sanya’s Haitang Bay shopping mall<\/strong> through an agreement with the mall’s state-owned operator, China Duty Free Group<\/strong>.<\/p>\n <\/p>\n The mall boomed as a high-end shopping destination during the Covid-19 pandemic, as Chinese consumers were unable to travel abroad.<\/p>\n <\/p>\n Some luxury brands, such as Gucci <\/strong>or Ferragamo<\/strong>, are already selling their products in the mall. But the most prominent fashion and leather goods brands of the LVMH group<\/strong>, such as Dior<\/strong> for example, are not present in Hainan, except for their perfume and cosmetics range. A Louis Vuitton duty-free store on the island would be one of the few such outlets for the brand.<\/p>\n <\/p>\n The global duty-free sector was worth $86 billion in 2019<\/strong>, but has declined to $45 billion in 2020 after the pandemic, according to Generation Research<\/strong>. At the same time, the Chinese government tripled the amount consumers could buy in duty free in Hainan, now set at 100,000 yuan<\/strong> ($15,635) per year, helping to lift some purchase limits.<\/p>\n <\/p>\n Meanwhile, according to a report revealed by KPMG China <\/strong>and Moodie Davitt Report<\/strong> at the China International Consumer Products Expo (CICPE)<\/strong>, Hainan’s offshore duty-free sector has been the “rising star<\/em>” of duty-free and travel retail since its inception in 2011. It is reportedly on track to become the world’s largest duty-free market in the next two years.<\/p>\n <\/p>\n The closure of borders and international flights, during the pandemic, hurt the gray market driven by “daigou<\/em>” (professional buyers who purchase high-end products overseas for mainland Chinese customers).\u00a0This has boosted duty-free sales in Hainan to five times<\/strong> pre-pandemic levels. Moving to Hainan gives luxury brands access to a wider customer base. However, Louis Vuitton and other luxury brands are wary that this will reduce the “exclusivity” of their products and fuel the grey market.<\/p>\n <\/p>\n <\/p>\n Read also >\u00a0LOUIS VUITTON INAUGURATES AN EPHEMERAL BOOKSHOP IN THE H\u00d4TEL BRACH IN PARIS<\/a><\/p>\n <\/p>\n <\/p>\n Featured photo : \u00a9 Luoyunfei[\/vc_column_text][\/vc_column][\/vc_row][vc_row njt-role=”not-logged-in”][vc_column][vc_column_text]<\/p>\n <\/p>\n Louis Vuitton<\/strong> is known for managing its distribution with an iron fist and never offering discounts on its luxury goods. Nevertheless, according to several sources, executives are reportedly exploring the possibility of opening a duty-free store in Sanya’s Haitang Bay shopping mall<\/strong> through an agreement with the mall’s state-owned operator, China Duty Free Group<\/strong>.<\/p>\n <\/p>\n The mall boomed as a high-end shopping destination during the Covid-19 pandemic, as Chinese consumers were unable to travel abroad.<\/p>\n <\/p>\n <\/p>\n […][\/vc_column_text][vc_cta h2=”This article is reserved for subscribers.” h2_font_container=”tag:h2|font_size:16|text_align:left” h2_use_theme_fonts=”yes” h4=”Subscribe now !” h4_font_container=”tag:h2|font_size:32|text_align:left|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE !” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Fluxus-plus.com%2Fen%2Fsubscriptions-and-newsletter-special-offer-valid-until-september-30-2020-2-2%2F”]Get unlimited access to all articles and live a new reading experience, preview contents, exclusive newsletters…<\/p>\n<\/h4>\n
French luxury group Louis Vuitton is reportedly considering a new strategy for the Chinese market, through the opening of a duty free store on Hainan Island.<\/h4>\n
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