LOUIS VUITTON is gearing up for expansion: this year the luxury fashion label has plans to open a store in Lebanon and one in Mongolia, having just opened its latest store in Dubai yesterday.
But that doesn't mean the label is getting too big for its luxury fashion house boots.
"Sometimes in our industry there is a tendency to follow your ego and sometimes open stores where you don't have the market, or stores too big for your potential — we never do that. When we open a big store, we know that there is a market, we know the financials. So we never have to close a store for economic reasons," Louis Vuitton chief executive Yves Carcelle tells DRAPERONLINE.COM.
He added that during 2009, no cuts had been made to investment and, despite there having been fewer store openings this year in comparison to 2008, the same in terms of square metres had been opened.
Louis Vuitton is part of the French luxury retail group LVMH, which counts Marc Jacobs and Donna Karan among its portfolio.
This news comes after hearing how Versace is closing it's stores in Japan after a fall in profits and news of how the sales of luxury goods has risen in the middle east by 4%.
It's interesting that despite the current climate some brands like Louis Vuitton aren't wary of expansion, instead they welcome it. Whether this is a good decision or not will soon be revealed in their next report.