Louis Vuitton Unveils Ship-Shaped Shanghai Store to Boost Experiential Luxury
Louis Vuitton has opened a striking new flagship store in Shanghai, designed to bring shoppers more than just products. Named “The Louis”, the 30-metre-high, ship-shaped store opened on Thursday in the busy Nanjing Road shopping area. It features an exhibition space and a café, aiming to draw crowds eager for experiences, not just purchases.
Luxury Shifts Towards Experiences Amid China Slowdown
The new store arrives as luxury spending in China slows. For years, brands like Louis Vuitton and Hermès have relied on Chinese shoppers to fuel growth. Now, they face cautious spending due to economic uncertainty and a prolonged property downturn.
China’s luxury market shrank by over 18% last year to around 350 billion yuan ($48.8 billion), with sales expected to remain flat in 2025, according to Bain. In the first quarter, LVMH’s revenue in the Asia-Pacific region, including China, dropped 11% on an organic basis.
Luxury shoppers in China are becoming more selective. Natalie Chen, a 31-year-old from Shanghai, says she now prefers travel over buying more handbags. However, she has visited Prada’s new restaurant in Shanghai and plans to visit Louis Vuitton’s café, noting it brings “a different kind of feeling” than shopping in a mall.
Experiential Luxury Sees Rising Demand
Despite a slowdown in product sales, luxury experiences are seeing growth. Bain reports that while global personal luxury goods spending dropped by up to 3% in 2024, spending on experiential luxury rose by 5%. Shoppers are turning to fine dining, art exhibitions, and brand-led hospitality for unique experiences.
This trend is shaping China’s evolving luxury market. Real estate advisor Savills highlights the rise of “Salon Privé” spaces and brand-led dining concepts designed to attract customers with memorable experiences.
Dior has opened a café in Chengdu, and Prada launched a restaurant in Shanghai earlier this year. Tiffany downsized a Shanghai store but opened a new flagship in Chengdu in March. Even as some brands close stores in China, they are investing in high-impact flagship spaces and experiences to keep their presence strong.
Strategic Realignment, Not Retreat
Industry experts note that luxury store closures in China do not signal a retreat but a strategic realignment. Zino Helmlinger from CRBE says that reducing store numbers can increase brand rarity, which is key in luxury markets. Patrice Nordey from Trajectry adds that experiential retail is about connecting with customers who seek fulfilling experiences, not just products.
Louis Vuitton’s “The Louis” store in Shanghai is part of this broader shift. By offering an immersive experience with art, architecture, and a café, it aims to build deeper connections with Chinese consumers and prepare for growth when market conditions improve.
with inputs from Reuters
