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 prestigious French luxury group, recently hosted an open-house event in Shanghai, celebrating their craftsmanship and unique connection with Chinese customers. The event's founder, Antoine Arnault, expressed his admiration for this bond during a launch event at the Samaritaine department store in Paris. This year's Les Journées Particulières, first introduced by Arnault in 2011, featured 71 venues across 13 countries, with the Shanghai event marking the first time multiple LVMH houses collaborated under one roof.
The exhibition in Shanghai showcased 15 LVMH brands, including Louis Vuitton, Dior, Celine, Tiffany, and Bulgari. Visitors had the opportunity to witness the creation of iconic products like the Louis Vuitton Speedy P9 bag behind the scenes. Prior to the Shanghai event, LVMH also held an opening ceremony in Zhangyuan, a historic district near Nanjing Xilu, where a Chinese calligraphy ceremony took place. This year's event will take place in four Chinese locations: two in Shanghai, one in Hong Kong, and one in Ningxia.
However, the group faced challenges as LVMH announced disappointing sales numbers from China in its third-quarter results. Sales declined by 5% in Asia excluding Japan, primarily due to a significant slowdown in Chinese consumer sentiment. The company's lawsuit against local tea brand Molly Tea, which ordered the payment of 10.3 million yuan (US$1.5 million) in restitution for using a logo similar to LVMH's four-petaled flower, further complicated the situation.
Cecile Cabanis, LVMH's chief financial officer, acknowledged that the negative news flow had a substantial impact on the company's morale, hoping that the situation would improve. Despite these challenges, LVMH continues to invest in China and will participate in the China International Import Expo in Shanghai early next month.
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