LVMH touts ‘special bond’ with China as ‘subdued’ backdrop weighs on sales
French luxury giant LVMH Group kicked off a global open-house event showcasing its craftsmanship in Shanghai on Thursday, as the event’s founder Antoine Arnault hailed a “special bond” with Chinese customers at a launch event in Paris. It came as the group faced pressure from sluggish demand in China and a backlash over a lawsuit against a local tea company. At the launch event at the Samaritaine…
LVMH, the French luxury group, unveiled its global open-house event in Shanghai, emphasizing a "special bond" with Chinese customers. The event, spearheaded by Antoine Arnault, founder and son of LVMH's chairman and CEO Bernard Arnault, took place at the Samaritaine department store in Paris. Arnault highlighted the first time multiple LVMH houses would gather at a single venue to share their savoir faire and dialogue with Chinese culture.
The exhibition in Shanghai will showcase 15 brands from the group, including Louis Vuitton, Dior, Celine, Tiffany, and Bulgari. Visitors will have the opportunity to witness the creation of iconic products like Louis Vuitton's Speedy P9 bag.
Despite the event's success, LVMH faced challenges from sluggish demand in China and a lawsuit against a local tea company, Molly Tea. The Chinese court ordered the tea chain to pay 10.3 million yuan for using a logo similar to LVMH's four-petaled flower. The ruling caused a negative impact on the French luxury giant's third-quarter results, with sales in Asia excluding Japan declining by 5%.
Cecile Cabanis, LVMH's chief financial officer, acknowledged that the news flow from China in the summer had been unfavorable, contributing to a "short-term subdued Chinese backdrop." Despite these challenges, LVMH remains committed to investing in China, including participating in the China International Import Expo set to take place in Shanghai early next month.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
