×
42 610
Fashion Jobs
KOHLS
Staff Product Manager-Innovation
Permanent · Menomonee Falls
KOHLS
Full-Time Sales Supervisor - Hardlines
Permanent · Rapid City
KOHLS
Full-Time Loss Prevention Officer
Permanent · Las Vegas
KOHLS
Full-Time Loss Prevention Officer
Permanent · Victorville
KOHLS
Full-Time Loss Prevention Officer
Permanent · Bakersfield
BLOOMINGDALE'S
Division Sales Manager: Bloomingdale’s 59th Street Flagship, Nyc
Permanent · New York
SALLY BEAUTY CORPORATE
Outside Sales Representative - Professional Beauty
Permanent · Kansas City
CLARKS
Assistant Wholesale Marketing Manager
Permanent · Waltham
ADIDAS
Manager Outbound Operations
Permanent · Spartanburg
ADIDAS
Senior Manager, Performance Marketing - Membership (Digital)
Permanent · Portland
ADIDAS
Logistics Manager
Permanent · Pittsburgh
ADIDAS
Technical Manager Maker Lab
Permanent · New York
GAP
Senior Producer- Digital Operations – International Promotions
Permanent · San Francisco
GAP
General Manager- Macarthur Park
Permanent · Irving
HUDSONS BAY COMPANY (HBC)
Analyst, Supply Chain
Permanent · Brampton
PUMA
Analyst, Business Intelligence - Consumer Insights
Permanent · Westford
L'OREAL GROUP
Buyer - (Purchasing/Procurement/Indirect Sourcing)
Permanent · Berkeley Heights
DESIGNER BRANDS
Director, Marketing Advanced Analytics
Permanent · Columbus
THE REALREAL
Sales Analyst, Business Strategy And Analytics
Permanent · San Francisco
THE REALREAL
Authentication And Brand Compliance Lead
Permanent · Perth Amboy
OLD NAVY
Assistant General Manager, Merchandising - Crossroads at Baileys
Permanent · Falls Church
COTY
E-Commerce Key Account Sales Manager
Permanent · New York

Louis Vuitton sees demand in mainland China picking up steam

By
Reuters
Published
today Jun 6, 2019
Reading time
access_time 2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Louis Vuitton, LVMH’s biggest sales driver, has beefed up stocks of its handbags and other luxury wares to feed its growing online business in mainland China, as Chinese consumers spend more at home, its management told analysts.


Louis Vuitton - Cruise Collection2020 - Womenswear - New York



Chinese shoppers are increasingly splurging on high-end fashion and accessories locally rather than overseas, encouraged by a leveling out of prices as import tariffs drop, although that has penalized some brands struggling to capture the shift.

Vuitton is benefiting thanks in part to a Chinese e-commerce push, according to analysts who attended a two-day closed-door briefing with the brand and LVMH.

More broadly, demand for Vuitton products within mainland China was still at “unheard of” levels, its CEO Michael Burke was quoted as saying. LVMH had no immediate comment.

“Although only a third of spend on Louis Vuitton is currently local, this is growing twice as fast and a 50:50 split is now on the cards,” Citi analyst Flavio Cereda wrote in a note.

Over the past nine months, Vuitton shifted inventories from neighboring countries to its e-commerce site in China, which now accounted for 8 percent of the brand’s sales there, Cereda added.

Vuitton launched its online business in China in mid-2017 - just after Kering-owned rival Gucci - with Prada and Hermes following suit.

Jeweller Tiffany, which has suffered from sharply lower spending among Chinese tourists in the United States, said this week it also planned to invest in e-commerce operations in China.

Relations between the world’s two largest economies have soured amid a trade war, adding to a tougher backdrop for luxury firms in their biggest markets.

But Vuitton gave a rosy view of its U.S. business and told analysts it had opened its third U.S. handbag manufacturing site, in Texas.
“Investors should be reassured by Louis Vuitton’s ‘healthy’ trends in Asia and the United States,” RBC Capital Markets analyst Rogerio Fujimori wrote.

LVMH shares were flat at the close of trading on Thursday, after rising more than 2 percent earlier in the day and hitting record highs of 357.10 euros ($403.27).

Vuitton, with annual sales around the 10.5 billion-euro mark, aims to make 1 billion euros in revenues from its watches and jewellery in the coming years, RBC’s Fujimori added.

It has already passed that threshold in its women’s and men’s clothing ranges, Fujimori’s said.

Asked by analysts whether LVMH might buy Chanel - after the French label sparked speculation it was on the block when it published earnings for the first time last June - the group’s CFO Jean-Jacques Guiony said its size would be a challenge for any buyer.

Guiony said Chanel was worth closer to 100 billion euros than the 50 billion euros often cited in media reports, Jefferies’ Cereda wrote.
Chanel did not immediately respond to a request for comment.

© Thomson Reuters 2020 All rights reserved.