LVMH considers opening its first Louis Vuitton duty-free store in Hainan, China in strategy shift, sources say
- Executives are looking at opening the first Louis Vuitton store in Haitang Bay shopping mall in Sanya, two sources said
- China last year tripled the amount local consumers can spend on duty-free goods in Hainan as the Covid-19 pandemic curbed spending abroad
The LVMH group is considering opening its first Louis Vuitton duty-free store in China in southern Hainan province in a move that would mark a new strategy for the world’s largest luxury label, according to two sources.
Executives are looking at the possibility of opening the store in the Haitang Bay shopping centre in Sanya, through an agreement with the mall’s state-owned operator, China Duty Free Group, they added. The mall, with the world’s largest duty-free shopping, opened in late 2014.
The plan, which would help LVMH capitalise on pent-up demand for luxury goods by Chinese shoppers - the sector’s most avid consumers - was unveiled by the Louis Vuitton brand executives at an early September presentation in Shanghai, according to a person who attended the event.
LVMH declined to comment when asked about plans for a duty free shop in Hainan, which has boomed as a high-end shopping destination over the past two years as the Covid-19 pandemic kept Chinese consumers from travelling and spending abroad. China Duty Free Group, the biggest operator at home, did not reply to a request for comment.
