Louis Vuitton has recently announced the closure of three China stores, including its first outlet in Gaungzhou. According to sources close to the brand, the luxury retailer is preparing to close several more stores across the country in the coming months.
Parent company LVMH said that overall sales in Asia fell by more than 9% in its third quarter of trading, with Louis Vuitton China sales “suffering” in particular.
These closures illustrate the pressure that China‘s luxury sector is facing, on the back of a slowing economy, government run anti-corruption and anti-extravagance campaign. Launched in late 2012, the three year political movement has hindered demand for all types of luxury goods in the country. Global brands such as Louis Vuitton are now viewed as commoditised and overpriced among China‘s changing, sophisticated consumers.