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LVMH in China: Building Its Empire of Desire
In July 2012, Louis Vuitton, the flagship brand of France's Moët Hennessy Louis Vuitton S. A., better known as LVMH, opened its 16th global "Maison" at Shanghai's Plaza 66, a mega luxury mall. The Shanghai Maison houses the entire range of Louis Vuitton collections, from high-fashion clothing and leather goods, to jewelry, watches, cosmetics, and wines and spirits. The grand opening of the Shanghai Maison also coincided with the 20th anniversary of the brand's presence in China; Louis Vuitton had opened its first store in the country in 1992, in Beijing's Peninsula Hotel.
LVMH's sales in Asia accounted for one third of its total revenue by the end of the first quarter of 2013[1]. Those results made Asia the largest region for LVMH in terms of revenues (Fig-6). Focusing on countries rather than regions, China is the world's biggest luxury market (Fig-7), having achieved an average annual growth rate of 27 percent from 2008 to 2012.
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