Advertisement
Fashion
Business

Louis Vuitton debuts first China restaurant in Chengdu as luxury brands target spending power in lower-tier cities

  • The brand’s fifth restaurant worldwide is in Sino-Ocean Taikoo Li, owned by Hong Kong-listed conglomerate Swire Properties
  • Luxury brands are targeting so-called new first-tier cities, where housing prices aren’t as high and consumers have more disposable income, an analyst says

Reading Time:2 minutes
Why you can trust SCMP
4
Louis Vuitton’s restaurant in Chengdu is located near its new flagship store in Taikoo Li. Photo: Handout
Yaling Jiangin Shanghai
Top French luxury brand Louis Vuitton has chosen the southwestern city of Chengdu for its first restaurant in China as purveyors of luxury goods expand their focus beyond the ultra-competitive first-tier cities and put more effort into providing experiences alongside their pricey products.
Advertisement

Luxury brands have notably ventured into what some refer to as “new first-tier cities” – a reference to prefecture-level cities with strong commercial activity.

Known for its laid-back culture and hotpot cuisine, Chengdu, the capital of Sichuan province, has a population of more than 21 million. It has emerged as a favourite spot for luxury brands thanks to the strong spending power of its residents. For example, Chengdu’s Gucci store, owned by luxury powerhouse Kering, was Gucci’s highest-revenue store worldwide in 2021, sources told trade journal Fashion Business Daily.

As the crown jewel of the world’s largest luxury group, LVMH, Louis Vuitton has led the industry shift. It opened a China-first exhibition entitled See LV in Wuhan in late 2020 and hosted a menswear show in artsy holiday destination Aranya of Hebei province in September.
Louis Vuitton’s first China restaurant is located in Chengdu’s Guangdong Hall, a historic structure that served as a rendezvous for Canton merchants in the early 20th century. Photo: Handout
Louis Vuitton’s first China restaurant is located in Chengdu’s Guangdong Hall, a historic structure that served as a rendezvous for Canton merchants in the early 20th century. Photo: Handout

“The phenomenon of brands shifting attention to new first-tier cities has a lot to do with China’s direction of urban development,” Miro Li, the founder of Hong Kong and Shenzhen-based marketing consultancy Double V, told the South China Morning Post. “Housing prices aren’t as high and consumers have a lot more disposable income for luxury in these cities.”

Advertisement

Having a notable presence in Chengdu is meaningful for luxury’s expansion in China’s southwest region, and the area is also less competitive for luxury, she added.

Advertisement