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Just why are Louis Vuitton and other high-end retailers abandoning China?

After a decade of aggressive expansion in China, international luxury brands shrink their physical presence and branch out into restaurants, cafes and even beauty salons

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Louis Vuitton’s store in Shanghai. The French luxury retailer has closed outlets in Harbin, Urumqi and now Guangzhou, while opening a new one in Hangzhuo. Photo: Bloomberg.

In the heart of Guangzhou’s Yuexiu district, the shopping centre La Perle is a symbol of luxury living in the southern Chinese city.

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The high-end shopping mall, which opened in January 2004, has long been the first stop for many international brands seeking to conquer the Chinese market.

But times are changing. A few weeks ago, La Perle lost one of its biggest tenants: Louis Vuitton. The French luxury retailer closed its store on the ground floor saying it would not renew its expired lease.

This followed the shutting down of the two other LV stores in the northeastern city of Harbin, in Heilongjiang province, and the western city of Urumqi, the Xinjiang capital.

The brand said the closures were part of a marketing strategy adjustment by headquarters.

READ MORE: Asian shoppers look to vintage clothes and accessories for something different

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