Hermès Bets on Growth in China, Opens New Store in Nanjing — Retail Bum

Hermès is betting on the revival of its business in China as the country takes steps to drop its strict pandemic-era restrictions, allowing citizens to resume normal lives after three long years.

The luxury brand has opened a new and enlarged store in Nanjing city with a broader selection of products, ranging from clothing and accessories to leather goods and home decor. The new store is located in the upscale Deji Plaza mall, and it has been opened in place of the Hermès’ existing store in the city, which first opened its doors in 2010.

The launch of the new store in Nanjing follows the opening of a larger launch in Wuhan and the launch of a new store in Zhengzhou, the capital and largest city of the Henan province.

Hermès’ decision to expand its presence in China comes at a time when the country is on track to become the largest luxury market in the world, with sales expected to grow between 25% and 35% this year. Meanwhile, western countries are expected to see a 5% to 10% increase in growth as the U.S. economy continues to cool and Europe deals with its ongoing energy crisis, Reuters reported.

Today, China accounts for 30% of annual sales for both Hermès and LVMH.

Originally published at https://retailbum.com on January 9, 2023.