Louis Vuitton’s long game: Building brand loyalty via cultural investment

Louis Vuitton is this summer taking over Beijing’s landmarks with local culture-inspired, immersive brand experiences. On July 10, the luxury house unveiled four pop-up spaces. By integrating art, history, sports, and commerce into these vibrant pop-ups, Louis Vuitton has created a captivating and multifaceted celebration of Beijing’s unique culture and heritage, enhancing the city’s allure. At the heart of this ambitious venture is “Beijing Fun” in the capital’s 798 Art District, a vibrant space filled with exclusive books, gifts, and travel collections. The brand’s pop-up bookstores can also be found along the Liangma River, near the Drum Tower, and in the heart of the Central Business District. Each location represents a unique facet of the city – art, history, sports, and commerce. This strategic placement highlights Louis Vuitton’s deep understanding and respect for Beijing’s diverse cultural landscape, and ensures that the brand’s presence is felt across the city. It’s a masterstroke in blending luxury with local culture, creating spaces that are as informative as they are aesthetically pleasing. Since their debut, these pop-ups have drawn diverse crowds, from fashionable youth to active middle-aged and elderly residents along the Liangma River, as well as tourists around the Drum Tower. The spaces infuse new vitality into Beijing’s urban landscape, offering an unparalleled opportunity to explore the city’s rich tapestry from an exhilarating new perspective. An official Olympic sponsor, Louis Vuitton is dedicated to fostering global connections and enhancing the travel experience for its clientele. With the Paris Olympics just around the corner, Louis Vuitton is also launching City Guides for Beijing and Paris, including its first-ever Paris edition featuring sports. This initiative fosters cultural dialogue between Beijing, a former Olympic host, and Paris, the next in line. The dual celebration of Beijing and Paris highlights the enduring relationship between the brand and the two cities. During the event, the Louis Vuitton City Guide Beijing and Paris special editions will be available for free download. Louis Vuitton also takes an innovative approach to retail, blending digital convenience with physical engagement. Visitors to the pop-up stores can immerse themselves in a range of engaging offline activities, including paddle boarding, cycling, table tennis, and chess, all of which can be reserved through Xiaohongshu. Additionally, the brand has launched a limited-time online bookstore on Douyin, creating a unique omni-channel experience. Last year, Louis Vuitton established a pop-up space on the bank of Suzhou Creek in Shanghai and introduced its inaugural Chinese podcast series, “Louis Vuitton [Extended],” on the Chinese podcast platform Xiaoyuzhou. Both initiatives refreshed Shanghai's image for local residents, encouraging them to explore the city from a cultural perspective. In an era when luxury brands face unprecedented challenges, Louis Vuitton has made substantial investments in creating cultural appeal and building brand desirability. Embracing its travel-centric DNA, the brand consistently invests in the spirit of travel, leveraging initiatives such as the Louis Vuitton City Guides to forge cultural exchanges across global destinations. From global campaigns to local adaptations, Jing Daily delves into the luxury giant’s intricate strategy and its distinctive approach to redefining the art of travel. Doubling down on the travel sector With international travel gradually resuming, Chinese luxury consumers have shifted their spending between domestic and overseas channels. According to the LVMH 2024 Q1 revenue presentation, the brand has been “taking advantage of ongoing travel rebound while staying vigilant in the context of macro and geopolitical uncertainties.” Nevertheless, domestic travel remains a substantial market. China’s Ministry of Culture and Tourism reported that 110 million domestic trips were made during the 2024 Dragon Boat Festival, with spending up 8.1% YoY. Louis Vuitton has been proactive in seizing this opportunity. The maison has organized offline events in emerging travel destinations in mainland China, including Qingdao, Shenzhen, Aranya, and Xiamen. Simultaneously, it has brought its signature travel culture to China's transportation hubs by revamping its airport boutiques and deploying out-of-home advertising. The brand has since 2022 mounted dedicated travel campaigns on airbridges in Shanghai Hongqiao Airport, reaching 100% of Terminal 2’s passenger traffic, from departure to arrival. In Shanghai Pudong Airport, the Louis Vuitton travel campaign is also displayed in the international arrivals’ baggage area. These initiatives, emphasizing domestic travel consumption, cultivate brand desirability among local shoppers within immersive settings, while nurturing future travel enthusiasts. Cultural twist on celebrity endorsement Apart from engaging with consumers in unexpected locations, Louis Vuitton has collaborated with international superstars to showcase the house's iconic Horizon luggage collection. In the second quarter of 2023, Louis Vuitton launched a global travel campaign titled “Horizons Never End,” featuring prominent figures like Lionel Messi, Sun Feifei, Gisele Bündchen, and Jackson Wang. The campaign was prominently displayed at airport luggage belts and city hubs. It also included travel vlogs with local celebrities featuring personal narratives and footage from their travel experiences, sharing their favorite suitcases, essential travel items, and behind-the-scenes stories of their journeys. The newly released Beijing podcast series invited distinguished guests – Chinese cultural tastemakers and Beijing natives such as Hung Huang and Gao Xiaosong – to share their memories and stories of the city. From impressive campaign shoots to intimate, authentic storytelling, these marketing initiatives enable local audiences to gain a deep understanding of Louis Vuitton’s universe, encompassing physical products and intangible cultures and values related to travel. A cultural entity Exuding exclusivity, prestige, and privilege, luxury brands are adept at leveraging the power of scarcity. However, Louis Vuitton contextualizes the concepts of luxury and the allure of travel to maintain its relevance among today’s discerning travelers. The brand’s persistent efforts have yielded significant results. According to LVMH’s Q1 2024 revenue presentation, Louis Vuitton’s organic revenue growth continued “despite a challenging environment.” Looking ahead, China’s economic recovery is ongoing, while consumer sentiment remains fragile. As the explosive growth of the luxury sector in China reaches a plateau, brands and retailers are reassessing their long-term strategies to navigate today’s challenges. Evidently, Louis Vuitton positions itself not merely as a luxury house, but as a cultural entity. Regardless of how the dynamics between exclusivity and inclusivity evolve, luxury remains a business of aspiration. Through the cultivation of its cultural capital rooted in the concept of travel, Louis Vuitton is solidifying its leading position in the luxury industry. Louis Vuitton’s multifaceted approach to engaging consumers – through pop-up experiences, localized strategies, and celebrity collaborations – demonstrates a profound understanding of the market’s complexities. By embedding itself within the cultural fabric of cities like Beijing and Shanghai, the brand continues to set the standard for luxury retail, creating immersive and aspirational experiences that resonate deeply with both local and global audiences. Presented by Louis Vuitton

Louis Vuitton’s long game: Building brand loyalty via cultural investment

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Published July 12, 2024

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Louis Vuitton’s long game: Building brand loyalty via cultural investment