LVMH reportedly shifts resources out of HK

LVMH is reportedly transferring its resources out of Hong Kong, meaning that Hong Kong might have lost its shine to be Asia’s premium shopping hub.

The global luxury brand prefers to centralise its investment in burgeoning metropolises such as Shanghai, Chengdu, Guangzhou and Shenzhen as Hong Kong loses its relevance in the Greater China region, sources familiar with the matter told Bloomberg.

As such, LVMH has relocated the regional headquarters of some brands, including the group’s local head office, to Shanghai and repositioned some senior executives to the mainland, according to the report.

MARKETING-INTERACTIVE has reached out to LVMH for a statement.

According to its official release, LVMH Moët Hennessy Louis Vuitton has recorded revenue of 21 billion euros in the first quarter of 2023, up 17% compared to the same period of 2022. Organic revenue growth was 17%. LVMH had an excellent start to the year, within a geopolitical and economic environment which remains uncertain.

Europe and Japan, which enjoyed strong growth momentum, benefited from robust demand from local customers and international travelers; the United States, a market which continues to grow, had a steady performance. Asia experienced a significant rebound following the lifting of health restrictions.

In selective retailing, revenue growth was 30% in the first quarter of 2023 (+28% organically). Sephora saw exceptional performance over the quarter and continued to gain market share. Momentum was particularly strong in North America, Europe and the Middle East. The brand continued to expand its distribution network, particularly in the United Kingdom where, already present online, its first store in London enjoyed an excellent start. DFS benefited from the recovery of international travel and, in particular, from the gradual return of travellers to the flagship destinations of Hong Kong and Macao.

In an uncertain geopolitical and economic context, LVMH remains both vigilant and confident at the start of the year. The Group will continue to pursue its strategy focused on the development of its brands, driven by a sustained policy of innovation and investment as well as by a constant quest for quality in its products, their desirability and their distribution.

LVMH relies on the talent and motivation of its teams, the diversity of its businesses and the good geographical balance of its revenue to further strengthen its global leadership position in luxury goods in 2023.

Related articles:

LVMH banks on Google to help propel personalised CX using AI
LVMH Group president for Greater China Andrew Wu joins the board of Cosmose