French Fashion Brand Reopens Melbourne Store for Surging Chinese Tourists

The renovated Melbourne store of iconic fashion brand Louis Vuitton will reopen on Tuesday, Oct. 27, in anticipation of the influx of spending by Chinese tourists, the Xinhua News Agency reported.

Located in Melbourne's retail hub of Collins Street, the store has undergone a major renovation, where another floor was added to cope with the increasing demand for the label's designer products.

"It's an iconic Melbourne building," Philip Corne, chief executive of Louis Vuitton Oceania, told Fairfax Media on Monday, Oct 19.

"We have expanded the store upstairs but we have also respected the heritage aspect of the building. We have been at the Paris end of Collins Street since 1986 now, and we know this is one of the most beautiful shopping boulevards in the world and much loved by the people of Melbourne," Corne added.

Corne said that despite the unfavorable situation of the Australian retail market, the French high-fashion brand had seen a spike in profits at its Melbourne store.

"Inbound Chinese customers are a big part of our business, but don't underestimate local buyers," Corne said. "We have all read that the retail conditions are tough, but we are growing at the luxury end of the market," he added.

Fairfax Media reported on Monday that Chinese tourists make up for about a quarter of all global spending, with 7 percent of their purchases spent on luxury items.

According to the report, Chinese buyers enjoy the incentive of reduced taxes offered by some overseas markets like Australia on these products. In addition, these products can often be purchased duty-free.

The report cited a recent IBISWorld report which said that Australia's luxury item industry is worth an estimated $1.4 billion to the economy each year, with an 8.6-percent rise in annual growth of the market expected over the next four years.

Louis Vuitton's Melbourne store's rent reportedly costs almost $1.4 million per annum.