French luxury goods label Louis Vuitton has announced that it will look into shutting down eight of its retail stores in second-tier locations within China. The slowdown of its once rapid expansion stems from a means “to avoid being overexposed,” according to Sanford C. Bernstein anaylst Mario Ortelli. Statistics showing Chinese shoppers are also traveling abroad to Japan and Europe for luxury goods, since both the yen (123 JPY = $1 USD) and euro (0.93 EUR = $1 USD) are currently weak and thus enticing for consumers. Furthermore, a recent Chinese government campaign has also been a possible reason for the shut downs, exhibiting the need to control extravagance. Other luxury brands are apparently following suit — TAG Heuer recently closed one of its stores in bustling Hong Kong while Burberry Group Plc will also reduce its HK presence as well as Chinese sales decline.
Source: Business of Fashion