French department store chain Galeries Lafayette has announced a partnership with Hopson Group, a Hong Kong-based real estate company, to open ten new stores in China by 2025. This move is part of Galeries Lafayette’s strategy to showcase the “art de vivre à la française”, or the French way of life, in the Chinese market.
Galeries Lafayette recently revealed plans to open two stores in India and is now looking to further expand its presence in China. To facilitate this growth, the company will establish a joint venture with Hopson Group, a publicly traded real estate company that specializes in the southeast region of China. Under this partnership, both companies will hold a 50% stake in the joint venture and aim to open ten large-scale stores across China by 2025. Additionally, Galeries Lafayette will strengthen its digital presence in China.
Nicolas Houzé, CEO of Galeries Lafayette and BHV Marais, stated, “This partnership illustrates our shared ambition to accelerate the expansion of our brand and create a major player in the retail industry that can meet the generational changes and the strong potential growth of domestic consumption by 2030.”
Galeries Lafayette already has a presence in Beijing and Shanghai, with each store covering over 25,000 square meters. The company plans to further expand its presence in China by opening stores in Shenzhen, Chongqing, and Macau by 2023.
To cater to the Chinese clientele, Galeries Lafayette will focus on high-end and selective brands, promoting the “art de vivre à la française”. By aligning itself with luxury and exclusivity, the company aims to attract Chinese consumers who value these qualities.
This partnership comes at a crucial time as the luxury market in China begins to recover from three challenging years. Galeries Lafayette hopes that this collaboration will help boost its sales, which were significantly impacted by the Covid-19 crisis. According to Bain & Company’s latest report, luxury product consumption in China decreased by 10% in 2022.
Nicolas Houzé expressed his optimism about the partnership, stating, “Ten years after our first presence in Beijing, and as the country gradually reopens its borders to the world after three challenging years, we are excited to embark on a new phase of our development in China.”
Useful links:
– Galeries Lafayette official website
– Hopson Group official website
