Latest news with #LVMH-owned
Express Tribune
7 hours ago
- Business
- Express Tribune
Louis Vuitton's ship-shaped shop wows the crowd
Louis Vuitton's latest Shanghai store is not your average luxury flagship. The 30-metre-high, ship-shaped store, The Louis, is billed as an experience, and houses an exhibition space and cafe in Shanghai's downtown Nanjing Road shopping strip. The Louis, which had a grand opening on Thursday, will undoubtedly draw crowds eager to post pictures to social media of its gleaming facade and the photo-ready exhibits inside. But LVMH-owned Louis Vuitton will also be hoping it can stimulate sales among Chinese consumers whose spending on luxury goods has slowed. LVMH's business strategy aligns with a broader shift among luxury goods retailers from a transactional model – where a shop merely sells goods to customers – to enticing customers with "experiences" that ultimately spur growth. The stakes are high for the luxury brands, which for years have relied on brisk sales in China to fuel their global growth, and ambitions, but are now facing a slowdown in demand in the world's second-biggest economy. The size of the Chinese market declined more than 18 per cent last year to around 350 billion yuan ($48.80 billion) and sales are on track for a flat performance in 2025, according to estimates from consultancy Bain. Zino Helmlinger, head of China retail at real estate service provider CRBE, acknowledges that the luxury segment as a whole in China has taken "a hit" recently, though he believes the slowdown was expected. "If you look at the megastars – I mean LVMH, Kering, Richemont, Hermès – they almost tripled their profit within five years," he said. "At some point, there is some counterbalancing, there is only so much you can grow, only so much you can generate." In the first quarter, LVMH's revenue in the region that includes China fell 11 per cent on an organic basis – the Asia-Pacific excluding Japan accounts for 30 per cent of the group's total sales. Chinese consumers, hard hit by broader economic uncertainty and a prolonged property market downturn, have tightened spending on discretionary purchases – luxury branded handbags among them. Wall Street extended its rally on Friday, sending the S&P 500 and Nasdaq to all-time closing highs — with each adding half a per cent – while the Dow climbed one percent. Shanghai native Natalie Chen, 31, says she already owns enough "stuff" and has redirected a significant portion of the funds she once used for luxury goods to travel. "Truthfully speaking, I don't feel that buying another bag will improve my life," she said, though she has already visited a new restaurant opened by Prada in Shanghai and intends to check out Louis Vuitton's new cafe concept with girlfriends. "It brings a different kind of feeling than just [shopping] in a mall," Chen said, though she was unsure the ship-shaped store would lead her to make any purchases outside of coffee and cake. Still, the luxury brands are sensing a longer term opportunity to pump-prime sales. While appetite for personal luxury goods in China and around the world is declining, hurt by economic pressures and price fatigue, sales rates of "experiential goods" are rising, according to Bain, which highlighted a surge in personalised luxury hospitality experiences and rising fine dining sales in its spring luxury report. In 2024, for example, the overall personal luxury goods market worldwide fell 1 to 3 per cent even as experiential luxury spending rose 5 per cent, Bain said. Reuters
New Straits Times
2 days ago
- Business
- New Straits Times
Global high-end brands bet on conceptual stores to revive sales
SHANGHAI: Louis Vuitton's latest Shanghai store is not your average luxury flagship. The 30-meter-high, ship-shaped store, "The Louis", is billed as an experience, and houses an exhibition space and cafe in Shanghai's downtown Nanjing Road shopping strip. "The Louis", which had a grand opening on Thursday, will undoubtedly draw crowds eager to post pictures to social media of its gleaming facade and the photo-ready exhibits inside. But LVMH-owned Louis Vuitton will also be hoping it can stimulate sales among Chinese consumers whose spending on luxury goods has slowed. LVMH's business strategy aligns with a broader shift among luxury goods retailers from a transactional model - where a shop merely sells goods to customers - to enticing customers with "experiences" that ultimately spur growth. The stakes are high for the luxury brands, which for years have relied on brisk sales in China to fuel their global growth, and ambitions, but are now facing a slowdown in demand in the world's second-biggest economy. The size of the Chinese market declined more than 18 per cent last year to around 350 billion yuan (US$48.80 billion) and sales are on track for a flat performance in 2025, according to estimates from consultancy Bain. Zino Helmlinger, head of China retail at real estate service provider CRBE, acknowledges that the luxury segment as a whole in China has taken "a hit" recently, though he believes the slowdown was expected. "If you look at the megastars - I mean LVMH, Kering , Richemont, Hermès - they almost tripled their profit within five years," he said. "At some point, there is some counterbalancing, there is only so much you can grow, only so much you can generate." In the first quarter, LVMH's revenue in the region that includes China fell 11 per cent on an organic basis - the Asia-Pacific excluding Japan accounts for 30 per cent of the group's total sales. Chinese consumers, hard hit by broader economic uncertainty and a prolonged property market downturn, have tightened spending on discretionary purchases - luxury branded handbags among them. Shanghai native Natalie Chen, 31, says she already owns enough "stuff" and has redirected a significant portion of the funds she once used for luxury goods to travel. "Truthfully speaking, I don't feel that buying another bag will improve my life," she said, though she has already visited a new restaurant opened by Prada in Shanghai and intends to check out Louis Vuitton's new cafe concept with girlfriends. "It brings a different kind of feeling than just in a mall," Chen said, though she was unsure the ship-shaped store would lead her to make any purchases outside of coffee and cake. Still, the luxury brands are sensing a longer term opportunity to pump-prime sales. While appetite for personal luxury goods in China and around the world is declining, hurt by economic pressures and price fatigue, sales rates of "experiential goods" are rising, according to Bain, which highlighted a surge in personalised luxury hospitality experiences and rising fine dining sales in its spring luxury report. In 2024, for example, the overall personal luxury goods market worldwide fell 1 per cent to 3 per cent even as experiential luxury spending rose 5 per cent, Bain said. LUXURY EVOLUTION New research released by real estate advisor Savills earlier this month points to this as a significant new trend in what it describes as China's "evolving" luxury market, in which people seeking out experiences are lured with more experiential luxury brand touchpoints, from restaurants to Salon Privé - private, appointment-only lounges for VIP shoppers. "All the brands are closing stores, but those that can afford to are also opening big flagships or holding some big events or exhibitions to keep their visibility extremely high," said Patrice Nordey, CEO of Shanghai-based innovation consultancy Trajectry, essentially preparing for future success when the market picks up again. Brands from Balenciaga to Chanel, Louis Vuitton and Prada have all closed stores in China since the second-half of last year. Gucci is on track to close 10 stores in the market this year, Helmlinger said. Louis Vuitton's stablemate Dior opened a cafe concept in Chengdu earlier this year, and in March Prada opened a Wong Kar Wai-designed restaurant at its Rong Zhai cultural space in Shanghai. Jeweller Tiffany and Co. recently downsized a large downtown Shanghai store, but in March it also opened a new three-storey flagship in Chengdu. Nordey says that while more people refer to this trend as "experiential" retail, it actually speaks to something much deeper. "I think it's a way of looking at your customer, either as someone that will buy products, or as an individual who is trying to have a more fulfilling life," he said. "If your purpose is not only to feed your client with consumer products, but more than that, you might actually resonate more strongly with them." While high-profile luxury store closures in mainland China have prompted speculation of brands lessening investment in a slowing market, CRBE's Helmlinger says the real story is more nuanced, indicating a strategic realignment of resources, rather than a pullback in the market. "You need to create this concept of rarity, and rarity comes with scarcity," he said. "When you have 80 or 90 stores in one market, it doesn't seem so rare anymore, it seems like it's mainstream."
Time of India
6 days ago
- Business
- Time of India
Prada's brand CEO Gianfranco D'Attis to quit
Prada's brand CEO Gianfranco D'Attis will leave the Italian luxury firm at the end of the month by "mutual agreement", Prada said on Sunday. Prada Group's CEO Andrea Guerra will take on the role of brand CEO on an interim basis, the company told Reuters. The news was first reported by fashion trade publication WWD. Luxury fashion has seen several changes in senior leadership and creative directors. Luxury goods giant Kering , which owns Gucci, last week named Renault boss Luca de Meo as its new CEO, replacing Francois-Henri Pinault, who has led the heavily indebted family firm since 2005. Top luxury houses are also betting on a new design direction to help rekindle interest from shoppers, who have pulled back on fashion as prices rise. Earlier in June, LVMH-owned Dior appointed its menswear designer, Jonathan Anderson, to also head womenswear designs and haute couture, replacing Maria Grazia Chiuri. Kering in May appointed former Valentino designer Pierpaolo Piccioli as creative director of Balenciaga, replacing Demna, who was taking up the chief design job at Gucci. Designer changes have also taken place at Chanel, Versace, Valentino and LVMH-owned Celine among others.
Fashion United
13-06-2025
- Business
- Fashion United
Louis Vuitton kits out Real Madrid
LVMH-owned Louis Vuitton and Spanish football and basketball club Real Madrid have announced a multi-year partnership. The French fashion house will provide formal travel attire for the men's and women's professional football teams, as well as the men's basketball team, Louis Vuitton announced on Friday, June 13. For the first time, Louis Vuitton placed its tailoring "at the service of athletes whose sporting achievements extend far beyond the stadiums". Caroline Weir and Athenea del Castillo in 'Louis Vuitton x Real Madrid' collection Credits: Louis Vuitton "We are proud to support a club whose history, marked by countless national and international victories, continues to inspire generations," said Louis Vuitton CEO Pietro Beccari. "Louis Vuitton and Real Madrid share fundamental values that have led them to the top of their respective disciplines, driven by a continuous quest for excellence, 'self-improvement' and a spirit of innovation." The Louis Vuitton menswear atelier, led by creative director Pharrell Williams, will be responsible for the collections created specifically for the players and other team members of the Spanish professional club. These include ready-to-wear clothing, shoes and accessories to be worn at official events, as well as pieces, bags and backpacks tailored to the players' travels. The focus is on a subtle balance of comfort, performance and elegance. "Real Madrid stands for excellence and evolution – always striving forward," said Williams. "This energy fuels what we do at Louis Vuitton. This wardrobe was created to move with that same spirit – pieces that travel with purpose, strength and style." Dani Ceballos in 'Louis Vuitton x Real Madrid' collection with matching suitcase Credits: Louis Vuitton The 'Louis Vuitton x Real Madrid' collections are intended solely for the teams and will not be available for sale. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
Yahoo
12-06-2025
- Business
- Yahoo
New CEO at WhistlePig Whiskey
US distiller WhistlePig Whiskey has named Charles Gibb as its new CEO. Gibb's appointment follows the departure of former CEO Jeff Kozak, who stepped down from the position to 'pursue other opportunities' in January. Following Kozak's departure, WhistlePig's board member Marty Birkel took on the role as interim CEO. In a statement, the Shoreham, Vermont-based distillery said Gibb's appointment comes at an 'inflection point' for the business and marks the 'next stage of evolution' for its WhistlePig brand and its 'super-premium' whiskey portfolio. Gibb has held previous roles at Fever-Tree, Bacardi, Diageo, and LVMH-owned Belvedere Vodka. Wilco Faessen, co-founder and chairman of WhistlePig Whiskey, said: 'Post an extensive search process, where we had an opportunity to consider various exceptional candidates, we are excited to welcome Charles to the WhistlePig team as we tackle the next phases of growth.' Just Drinks has asked WhistlePig Whiskey for an update on the company's latest financial results and share ownership but had not received a response at the time of writing. Gibb was credited with establishing Fever-Tree's operations in North America. WhistlePig Whiskey said he drove the mixer brand 'to the top of the ginger beer and tonic water charts', while broadening its relevance across a variety of consumption occasions. During his time at Belvedere Vodka, Gibb led global expansion initiatives, establishing partnerships such as Project RED and James Bond, 'elevating' the brand's worldwide presence, the rye and bourbon producer added. Gibb said: 'As a Scot, I could not be more excited to be joining this exceptional American whiskey brand. I thrive in an innovative, dynamic and entrepreneurial environment. 'I have been involved with start-ups, initiated new markets and transformed developed markets by breaking apart paradigms to accelerate growth. That is exactly what WhistlePig does with whiskey. We have the perfect mix to shake up the market. Or stir up, if you prefer.' "New CEO at WhistlePig Whiskey " was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
