Over the weekend, the renowned luxury brand Hermès reopened its boutique in Guangzhou, China, with astounding results that seem to confirm the predictions of “revenge buying”. Previously located in the Taikoo Hui shopping center since 2011, Hermès inaugurated a new and impressive location in the mall’s atrium on April 11th. This spacious 511m2 retail space, spread over two levels, is impossible to miss and features a claustra architecture designed by the Parisian agency RDAI.
The brand’s primary aim with the new store is to offer both local customers and new visitors a unique and memorable shopping experience in a harmonious and inviting setting. The design and ambiance of the store successfully combine the rich traditions of Guangzhou with the innovative and dynamic spirit of the city, as well as the exceptional creativity and craftsmanship of the House of Hermès.
This latest initiative exemplifies Hermès’ approach to opening and reopening brick-and-mortar retail outlets. Recently, the brand opened an address in New York that specifically caters to Generation Z, and it also made a splash with its presence in the Crystal House in Amsterdam.
In just one day since the reopening, the new Cantonese store generated a staggering $2.7 million in sales. This remarkable figure can be attributed to the exclusive and specially crafted products available at the store, including Birkin bags adorned with the Brandebourg motif and a Himalaya model embellished with diamonds. These unique offerings not only attracted brand enthusiasts to visit the boutique but also enticed them to make substantial purchases.
According to WWD, the opening day sales of the store set a record, prompting speculation about whether this could be indicative of the phenomenon of “revenge buying”. Revenge buying refers to a surge in consumer spending following periods of lockdown when individuals feel a pent-up desire to indulge in luxury purchases. The success of Hermès’ reopening raises the question of whether this trend is emerging in the Chinese market.
Behind Hermès’ decision to further expand its presence in southern China lies the company’s clear priority to reconquer the Chinese luxury market. In 2019, the Asia (excluding Japan) region represented the brand’s highest growth territory, with an estimated increase of 18%, despite the challenging situation in Hong Kong. As it is projected that nearly half of Chinese consumers will make luxury purchases within their own country by 2025, and considering the current uncertainties surrounding international tourism and cross-border movements due to the pandemic, localization strategies in the Chinese market could continue to gain momentum for luxury brands.
Useful links:
1. Hermès Official Website
2. WWD – Women’s Wear Daily
