The protests in Hong Kong are negatively affecting company’s profits pushing Bernard Arnault-owned Louis Vuitton, to close its store located in the Times Square Mall.
Since June Anti – Government protests have been flared up in Hong Kong and many high-end fashion labels have been affected in the southern China.
Louis Vuitton owned by French Bernard Arnault a fashion mogul has initiated the process of shutting its store in Hong Kong amidst the protests against the government. Louis Vuitton, popular as LV, is one of the world’s biggest luxury goods brand as per sales. It is firming its store closure plan in Hong Kong due to protests. These protests have affected the demand as high rents account for low profits as per the South China Morning Post, Reuters reported. The French fashion brand – Louis Vuitton operates 8 shops in Hong Kong. The store in Times Square mall is the one which is under inspection as company failed to negotiate the rent cut in the mall the paper cited sources as mentioning this.
Louis Vuitton brand is owned by LVMH group. This conglomerate is based in Paris and operates other popular fashion brands like the Christian Dior, Sephora, Fendi and Hennessy cognac. Many such high-end fashion labels have been affected by the sales due to the protests. These high end brands had hoped that the issue would ease soon in Hong Kong as it is one of the world’s best shopping destinations. Though this region attracts many high-end luxury goods shoppers usually, but this year arrivals have slumped and losses have been registered by these brands in their third-quarter earnings. The global personal luxury goods market is seen to grow in the next six years due to increasing disposable income and affordable luxury goods as per the report released by Value Market Research.
Recently, the luxury goods maker LVMH acquired Tiffany – marquee jewellery maker – for close to USD 16 BN. US-based Tiffany was struggling to make profits and this deal with LVMH is a step to revive the brand’s lost image as per Bloomberg in November. The luxury brand LVMH plans to ramp up Tiffany’s presence globally. The brand is especially targeting the budding Asian market which seems to have lot of potential for personal luxury goods.
Naira Shekhawat has been into Content Writing just after completing her Graduation in English Literature. Her love for words has won her many accolades in her respective jobs ever since. Naira covers business sections for VMR News. She is a traveller by heart and loves writing on food blogs as a freelancer.