Hermes Guangzhou Reopened For Sale, The First Day Sales Reached 19 Million

In April 11th, Hermes Guangzhou Taigu flagship store was reopened. According to the fashion business news, sales reached 19 million yuan on Saturday, the first day of its business opening.

The rental area of new store has increased by 84%, which is divided into two levels. Designed by RDAI, the Paris architectural firm, which is responsible for global stores, the overall decoration has Guangzhou local characteristics, and the area is the second store in the country, next only to Shanghai's Hermes house.

It is worth noting that in April 3rd not long ago, Hermes was closed at the store of Libai square in Guangzhou.

From the relevant persons in the store, it was learned that the operation of the store was closed on the evening of 2, that is, from 3. The reason is that the lease is due and has nothing to do with business performance.

Since the outbreak of the new crown outbreak in less than a month, almost all luxury brands have lowered their sales expectations in 2020. According to the size of sales, most of the second-line international brands expect 2020 sales to be reduced by at least 100 million dollars.

LVMH boss lost 200 billion yuan during the epidemic. Today, the world's largest boutique group has more than 50 brands, LV, Dior, which we are familiar with. Fendi, Guerlain, Hennessy and so on are all famous brands.

LVMH's stock price reached its peak since 2020, which was about 439 euros per share since January 17th. At that time, Arnaud was worth about $116 billion 500 million and was once on the throne of the world's richest man.

Meanwhile, LVMH's acquisition of jeweller Tiffany was also suspended. The reason for the delay is that Australian regulators need more time to check for reasons of the epidemic, so the statutory review deadline will be extended from April 8th to October 6th.   

In recent two months, the epidemic began to spread in Europe and the United States, and the global luxury market has also been greatly affected. LVMH share price has fallen by more than 20% from its peak. It is estimated that revenue will decline 10% to 20% in the first quarter of 2020.

Libo Hermes is the first Hermes store in Guangzhou. Since the withdrawal of Giorgio Armani from Guangzhou in 2019, the industry has also made a conjecture about the luxury brand or the strategy of "one city, one store" in some areas, which means that the future luxury brands may focus on the most efficient resources and create a concentrated display of brand image.

Although Hermes has been withdrawn from liebai square, the store in Tai Koo Hui in Guangzhou has now been reopened. The new store has an area of over 500 square meters and has become a new flagship store in Guangzhou.