How Louis Vuitton mastered the art of Asian luxury

On January 1, a queue of eagerly awaiting hypebeasts snaked past the trendy wine bars and cafés that populate Shanghai’s Julu Road — not for a caffeine fix, but for a shot at getting their hands on the latest Takashi Murakami x Louis Vuitton drop. The temporary pop-up — awash in the luxury behemoth’s multicolor monogram — set the tone for Louis Vuitton’s APAC expansion plans this year. Several pop-ups appeared on the same day across Asia — including in Japan’s Shibuya ward and Seoul’s Gangnam District — drawing throngs of fans vying to get their hands on the collab’s latest offering, two decades after it debuted. Creative concepts elevate Louis Vuitton’s APAC presence “Louis Vuitton isn’t shy about adopting new concepts in old frameworks,” says Linda Yu, General Manager at Chinese marketing agency Red Ant Asia. “While the concept was still Louis Vuitton x Murakami, [Louis Vuitton] embraced different formats, including a monogram windmill space takeover, a coffee garden, and a mini cinema. It’s a good example of combining retail, culture and F&B (food & beverage) experiences in one moderate investment.” The collab’s success is an example of Louis Vuitton’s ability to command the attention of Asian shoppers — particularly in China. The French luxury powerhouse opened its first stores in Tokyo and Osaka in Japan in 1978, followed by post-ups in South Korea in 1984, and China in 1992. Today, it operates around 2,003 stores across APAC, including in Tier 2 and Tier 3 cities — such as Suzhou, Wuxi, and Urumqi — in China. In September last year, it opened its seventh boutique in Beijing, located at the Taikoo Li Sanlitun shopping district. But ubiquity is just one component of Louis Vuitton’s extensive APAC strategy. Localized strategy: Adapting to China’s diverse luxury market “Given the economic downturn and competitive luxury market in China, Louis Vuitton has been seen adjusting its strategy to appeal to more diverse audiences, i.e. launching more affordable bag styles, participating in pricing games (points collecting, coupons refund), and launching cross-over marketing activities,” says Yu. This year alone, the house has hosted its exclusive four-hands dinner at its Michelin-starred restaurant, The Hall, alongside Chengdu’s Latin American Michelin one-star restaurant, Mono; launched ultra-limited-edition diamond bracelets and a serpent-inspired timepiece for the Year of the Snake; rolled out its highly anticipated Murakami collaboration; and unveiled a new men’s store at Shanghai’s IFC Mall. “[Louis Vuitton’s] strategy is rooted in consistency,” says Xuan Wang, activation director and partner at Tong Global and luxury PR veteran. “It has embraced a more localized approach — granting its Chinese team greater creative autonomy — while not losing the essence of the brand.” Drizzie Zuo, a Shanghai-based senior analyst at Ladymax, agrees. The maison’s momentum in China has remained consistent over the years, Zuo says, emphasizing that this stability is “driven by the brand’s unique position as a benchmark in the luxury industry — a role that no other brand can replace.” Social media virality is also translating hype into tangible sales. Last year, the brand capitalized on China’s growing high-end chocolate obsession, sparking an online frenzy with the launch of its first chocolate shop in Shanghai. Crowds flocked to secure reservations, with demand soaring so high that shoppers turned to scalpers, individuals who buy scarce products to resell them at significantly higher prices. Wang cites the brand’s dedicated podcast, which explores stories rooted in Shanghainese neighbourhoods, as another example of Louis Vuitton outpacing rivals in China. “By focusing on storytelling, heritage, and cultural relevance, Louis Vuitton creates a deeper and more enduring connection with consumers, allowing it to avoid the volatility associated with trends,” he says. Collaborations with Asian artists enhance cultural relevance Collaborations have helped Louis Vuitton deepen its Sino-French footprint. The maison has mastered scouting creative voices across Asia to drive sales and cultural capital, argues Daniel Langer in his latest op-ed. Recent tie-ups underscore this vision. The label’s Nature Melts trunk with Chinese artist Zhou Yilun reimagined LV’s Monogram canvas through his signature melting effects, while Sun Yitian’s photorealistic designs brought the wow-factor to the brand’s Voyager pre-fall 2024 show in Shanghai’s Long Museum. Wang says that collaborating with emerging talents who hold significant influence within their niches has allowed the brand to cultivate diverse creative expression across China, a move that allows “contemporary Chinese design to shine without relying on overt Chinese cultural motifs.” Louis Vuitton’s enduring partnership with Yayoi Kusama — first introduced in 2012 under Marc Jacobs — further cements its strong ties to Asia’s art scene. In 2023, the house reimagined the collaboration for a new era, bringing Kusama’s world to life through hyper-realistic animatronics and immersive store takeovers. An orchestrated mix of established and rising idols is similarly strengthening cultural dominance. The brand has enlisted a roster of talent — including Chinese singer and rapper Jackson Wang, Blackpink’s Lisa, alongside K-pop stars BamBam, Felix, and Hyein — to boost relevance across Asia. Most recently, it welcomed rising Taiwanese actress Gingle Wang into its community, doubling down on its star power in key markets. Challenges and shifts in China’s luxury market While Louis Vuitton’s high-energy campaigns and uber-localized activations may generate buzz, they don’t make it immune to the shifting luxury climate. Economic uncertainty, coupled with the end of the country’s post-pandemic “revenge buying,” drove an 18% to 20% decline in China’s luxury market in 2024. It took a toll on the brand’s performance. Parent company LVMH saw Asia-Pacific revenue (excluding Japan) slide 10% YoY in Q4, with organic sales in China dropping a steeper-than-expected 16%. Then there’s the delay of the opening of Louis Vuitton’s flagship store in Beijing’s Sanlitun Taikoo Li, originally scheduled for H1 2024. While the maison has reported “double-digit growth” in early 2025 — bolstered by its high-octane Takashi Murakami campaign — analysts remain cautious. Employment cuts and salary slashes are also weakening Gen Zers’ spending power. Eager for luxury products, but forced to tighten purse strings, shoppers are pivoting to “pingti,” aka high-quality dupes of their favorite brands. According to Shanghai-based market research firm Mintel, social media searches for dupes increased threefold from 2022 to 2024. Meanwhile, last year’s high-profile tensions between Louis Vuitton sales staff and Chinese shoppers, which saw one customer make assistants at an LV outlet count $84,000 in cash for two hours before leaving empty-handed, further placed the label under scrutiny. Maintaining cultural relevance: Louis Vuitton’s street cred and logo appeal At its core, Louis Vuitton’s enduring reign in Asia hinges heavily on consumer preferences — specifically, its street cred. The country’s deep-rooted appetite for conspicuous consumption has boosted appeal: China’s “noble ladies,” for example, are drawn to logo-heavy pieces, with the LV Neverfull a popular choice. “It’s more recognizable,” says Carrie Chen, a 30-year-old housewife from Wenzhou and proud owner of an LV Carryall, when asked why she gravitates toward the brand over competitors. Leaning into its image while embracing local tastes and cultural nuances has kept the legacy house from fading into obscurity — even in challenging times. “[The brand] distinguishes itself as a culture-driven luxury fashion brand, a key factor in its sustained success,” says Wang. “Unlike many competitors that adopt a product-led approach — relying heavily on the success of hit products to drive short-term growth but occasionally facing challenges tied to the cyclical nature of fashion, Louis Vuitton’s strategy emphasizes the uniqueness of its brand territory.”

How Louis Vuitton mastered the art of Asian luxury

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Published February 06, 2025

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How Louis Vuitton mastered the art of Asian luxury