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28 February 2024

Why is Hermès Outperforming Louis Vuitton in China?

WARC

Hermès and Louis Vuitton are both leading brands that have had exceptional success in the region by engaging with local cultures, influencing luxury consumption preferences, and investing in digital campaigns. They have made different brand and media choices with differing levels of engagement, which I explore below.

LVMH’s Q3 2023 revenues in Asia, excluding Japan, increased by 11% versus 2022. According to LV, “Following the immense enthusiasm generated in July by the first show of new Men’s Creative Director Pharrell Williams, held on the Pont-Neuf bridge in Paris, Nicolas Ghesquière’s boundless creativity continued to captivate audiences, with the Women’s Spring/Summer 2024 ready-to-wear show held at the Maison’s future location at 103 avenue des Champs-Élysées.” It seems these events and recent changes to brand messaging did not translate as effectively into the Chinese market. LV was also having issues curbing parallel channels for its perfumes and cosmetics division in China.

© By Zenith Media

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