Foreign luxury firms restrain their expansion in China

Several large international luxury companies will restrain their expansion in China this year, especially due to the slowdown in sales and because of the central government’s offensive campaigns against luxury goods.

Most recently Gucci announced that instead of their previously announced intentions to open new stores in China this year, they will renovate the existing ones and will seek to improve quality.

In late January, the LVMH Group (Louis Vuitton and Givenchy) announced that they will not extend in smaller towns, will only open new businesses in the largest metropolises in China. British Burberry and the Swiss Richemont also cancelled their plans referring to poor market performances. (MTI)