2011 Bain China Luxury Market Study
Brands continue to expand aggressively in 2010, however,
some slowing down evidenced in 2011
Store Count of Selected Luxury Brand by end of September 2011
125
114
104 104
100-
• New stores opened for
69
75-
69
50-
25-
select brands
- 2009: ~150
- 2010: ~160
- 2011 (by end Sep): ~90
57 56 56
52
45
38 37
30
TU
Ermenegildo Zegna
BOSS
ARMANI
dunhill
BALLY
BURBERRY
Salvatore Ferragamo
GUCCI
COACH
Opened in 2011(by
end of Sep 2011)
Opened in 2010
Opened in 2009
Opened in 2008
Opened before 2008
20 19 19 18 16
7
VERSACE
BVLGARI
*
PRADA
CHANEL
HERMÈS
TIFFANY & CO.
LOUIS VUITTON
Dior
Cartier*
*Cartier and Bulgari store data excludes watch counters
KEY DRIVERS
• Some investment reduction
planned during 2008-2009 crisis
• Some brands are making conscious
decisions to reduce the pace of
expansion and focus more on store
performance improvement
• Despite high growth of commercial
real estate, brands are being more
selective on top quality locations
with great infrastructure &
management
• Talent shortage and rising labor
cost remain major hurdles for store
expansion, especially in tier 2/3
cities
"We are intentionally slowing down
the expansion, because we have
already established great awareness,
and we will be very selective on
locations to open new stores."
PR Director, Luxury brand
Note: Armani brand includes Giorgio Armani, Emporio Armani and Armani Collezioni; Dior brand includes Dior Ladies and Dior Homme
Source: Analyst reports; Literature search; Brand interviews
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent
SHA
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