LVMH building beauty hub in Shanghai
22 Apr 2021
LVMH, the luxury conglomerate parent company of brand’s including Louis Vuitton, Dior, and Fendi, is set to open its largest e-commerce sales and storage hub in the Asia-Pacific region. The news was reported by Business of Fashion.
The new hub will be an industrial base for e-commerce packaging and dispatch for LVMH’s cosmetics and perfumes. The new hub is expected to come it a cost of 154 million dollars.
Asia continues to be one of the largest markets for LVMH, with the region, excluding Japan, accounting for 45 percent of the Group’s perfumes and cosmetic sales, making it the company’s largest region market. After the global COVID-19 pandemic China was one of the strongest rebounding markets for luxury companies.
Prior to COVID-19, the beauty and personal-care market was flourishing in Asia. According to Ifop Asia, the sector was booming generating 66.06 billion dollars in retail sales in 2019 with a compound annual growth rate of approximately 9 percent over the past five years. China especially has been to key to LVMH’s growth.