Louis Vuitton is committed to the Greater China market and the company’s chief believes Hong Kong’s challenges are of a short term nature.
And the company has announced it will soon commence renovations of its Louis Vuitton Hong Kong flagship store at Landmark Central.
Chairman and CEO Bernard Arnault told the company’s annual meeting in Pairs that the current downturn in Hong Kong is just a “cyclical” problem.
He said the luxury retailer will be keeping all of its stores in the territory, apparently referring to all the group’s brands which also include Celine, Loewe, Kenzo, Givenchy, Fendi, Donna Karan and Marc Jacobs.
“In Hong Kong, [there] is no question of closing the few shops that we have,” he said.
“Hong Kong is a cyclical city. As you know, you have ups and downs there. Right now, Hong Kong is going through a trough,” Arnault told shareholders.
“Hong Kong will remain one of the high points in Asia and one of the drivers of our growth.”
In the mainland, where Louis Vuitton has been culling about one in five of its stores, the company was planning to maintain the same number of stores – just in different locations.
“If we [close stores], it is only because Louis Vuitton will open shops elsewhere,” he said.
“The retail picture is evolving rapidly in China, you have some areas of the country that may be attractive one day, less attractive the next day.”
The company will continue to close stores which were not performing when their leases came up for renewal.
“When new malls are built, the leases are very attractive.”
Arnault said it often made sense for the brand to leave a mall where the business was not performing well in order to open in another centre where the company might secure two or three years free rent.
“Of course we will take the opportunity” he concluded.
