Could Louis Vuitton be transitioning from luxury to lifestyle?

The brand recently opened its first restaurant “The Hall by Lousi Vuitton.”

LVMH Moët Hennessy Louis Vuitton (LVMH) recently launched its first restaurant “The Hall by Louis Vuitton,” which GlobalData sees as a move to becoming a lifestyle brand. 

“Through this strategic move, LMVH looks to evolve itself from a luxury goods brand to a lifestyle brand,” Bobby Verghese, Consumer Analyst at GlobalData, said. 

LVMH offers luxury products across categories, such as skincare, fragrances, make-up, and male toiletries in China under the brands Bvlgari, Dior, Givenchy, Guerlain, Kenzo, Benefit, and Makeup Forever. 

Read more: LVMH posts 23% profit growth amidst CN business disruptions

The Chinese cosmetics market is a pillar for LMVH, which contributed $998.5 million in value sales in 2021, up from $895.1 million in 2020. The opening of “The Hall by Louis Vuitton” is expected to bring China’s full-service restaurant market to $719.8b by 2026 from an estimated $558.1b in 2022.

LVMH opened the restaurant at the Sino-Ocean Taikoo Li mall in Chengdu in the Sichuan province in China. 

“This is unsurprising as the rising consumer purchasing power of Chengdu is attracting luxury brands to the ‘tier 1’ city,” Verghese said.

According to GlobalData, Chengdu’s real GDP per-capita real GDP are estimated to be $129.3b and $7.9m in 2022, respectively. Chengdu is also a fast-emerging economic powerhouse.