LVMH is deepening its presence in China with a major retail expansion set for December 2025. The group will open new multi-story flagship stores for Louis Vuitton, Dior, Tiffany & Co., and Loro Piana in Beijing’s Taikoo Li Sanlitun, marking one of its most significant launches in recent years.
The location, developed by Swire Properties, has seen strong post-pandemic recovery, becoming a benchmark for luxury retail in Asia. This expansion underscores LVMH’s confidence in the market’s long-term potential and its strategic timing could not be more deliberate.
A Market in Recovery
After a challenging 2024, when China’s luxury sales fell by nearly 20 percent, signs of stabilization are emerging. LVMH’s sales in China grew 2 percent in Q3 2025, reversing a 9 percent drop earlier in the year. The rebound is mirrored by other players Kering, Lululemon, Tapestry, and Ralph Lauren all reporting improved performance on the mainland.
While consumers remain selective, luxury spending is regaining momentum, supported by a rising middle class and strong domestic tourism. The steady flow of investment from leading groups suggests renewed confidence that China’s slowdown has reached its floor.
Future Openings and Local Strategy
Beyond Beijing, Dior is preparing to open a flagship at HKRI Taikoo Hui in Shanghai by 2027. This follows record retail growth for Swire Properties, whose luxury portfolio in Shanghai and Beijing saw double-digit gains this year with HKRI Taikoo Hui alone up 42 percent year-on-year, driven by a Louis Vuitton opening.
For LVMH, this expansion isn’t just about presence; it’s about experience. The group’s upcoming flagships are expected to integrate art collaborations, localized design, and cultural storytelling continuing the brand’s move toward immersive, emotional retail environments tailored to Chinese consumers.
What It Means for the Industry
The timing of this expansion suggests that the world’s largest luxury conglomerate sees China entering its next cycle of growth one shaped less by mass prestige and more by cultural relevance, authenticity, and experience.
As consumer behavior evolves, brands that balance global identity with local nuance will lead the next phase. LVMH’s decision to double down now reflects not only financial confidence but also strategic foresight: rebuilding deeper emotional connection where luxury first became modern.
China’s luxury rebound is no longer just a prediction it’s beginning to take shape.
Overall, this move signals that LVMH is positioning itself early for the next phase of growth in the world’s second-largest luxury market, leveraging both scale and creativity to sustain momentum.
Written by Shubham Kumar
byshubhamkumar.com | Exploring the intersection of luxury, sustainability, and culture
Courtesy of Dior / Pexels
