Louis Vuitton, the world's biggest luxury brand in terms of sales, is planning to dampen its expansion worldwide and focus on high-end products to preserve its exclusive image, according to Bernard Arnault, CEO of parent LVMH.
Arnault said Louis Vuitton, which recently launched a major television ad campaign, was not planning to open boutiques in second and third-tier cities in China to "avoid becoming too commonplace."
Louis Vuitton's new CEO has quit suddenly from the helm of luxury group LVMH's top brand because of health reasons, LVMH said on Tuesday.
The world's largest luxury company said Jordi Constans would be replaced by Michael Burke, CEO since February of Bulgari, the Italian jeweller that LVMH added to its stable last year.
LVMH said Constans' sudden departure after less than a month was due to the discovery of a "significant health issue which requires that Mr Constans focus on this priority".
Luxury conglomerate LVMH Moët Hennessy on Thursday opened a managerial training centre in Singapore, its first outside of Europe. The LVMH Asia-Pacific Talent Development Centre will focus on developing management talent in Singapore, Hong Kong and Shanghai. The roughly 6,000-square-foot facility houses numerous training rooms, as well as glass displays of flagship goods from most of LVMH's stable of labels.
LVMH on Monday posted comparable third-quarter sales growth of 6 percent as resilience in champagne, cognac and cosmetics helped compensate for slower growth at the luxury group's watch, fashion and leather units.
The world's number one luxury group which owns Louis Vuitton said revenue in the three months to 30 Sept. totalled EUR6.9 billion (USD8.93b).
Luxury fashion retailer Hermès has taken legal action against rival LVMH, citing the way it bought a stake in it two years ago.
Hermès – known for its silk scarves and leather bags – said it had filed the complaint in a Paris court on 10 July.
France's AMF market watchdog is currently conducting a probe into the terms of LVMH's stakebuilding.
Revenue at LVMH, world's largest luxury group, climbed 25 percent to EUR6.58 billion (USD8.64b), sales growing by 14 percent excluding currency shifts and acquisitions, up from 12 percent in the last three months of 2011.
Demand for LVMH's products is rising even as China's economy slows and Europe's debt crisis weighs on consumer spending. The Sephora cosmetics chain and DFS duty-free stores led the gain as sales at the selective retailing unit surged 18 percent on a so-called organic basis.
Bulgari has a limited retail presence in six cities in India through distributors. Bulgari's only mono-brand store in Mumbai closed last year, following disappointing results. Following the acquisition of Bulgari by giant LVMH, the global transition is under way and plans for the India business will be in place soon, said Franck Dardenne, newly appointed general manager for the Indian business.
LVMH may also introduce products from joint venture De Beers diamond jewellers in India.
A financial consortium backed by French luxury goods giant LVMH has acquired a 10 percent stake in Chinese fashion maker Ochirly, a sign that global retailers are keen to tap the huge potential of China's middle-class consumers, people close to the deal said on Wednesday.
The deal is worth USD200 million, valuing the whole of family-owned Ochirly at USD2 billion, and marks the first time L Capital, the private equity arm of LVMH, has taken a direct stake in a Chinese company.
After PPR's acquisition of luxury Swiss watches group Sowind, it is now LVMH's turn to make a similarly important acquisition. LVMH bought Swiss haute horologerie manufacturing atelier La Fabrique du Temps, based in Geneva.
La Fabrique du Temps has been manufacturing movement mechanisms for high end luxury watches.
Shares in some of the world's biggest luxury goods companies including Louis Vuitton owner LVMH, Hermès and Burberry have tumbled on concerns that high-spending Japanese consumers will stop shopping as a result of the disaster.
British coatmaker Burberry was down as much as 6 percent in Monday morning trading as investors worried about the effect of the earthquake on consumer confidence in what is the world's third largest buyer of designer clothes and handbags.