Tiffany expects double-digit growth in China after reopening in Shanghai
The chief executive officer of the American jewelry company, Alessandro Bogliolo, estimates a boost in sales in the Asian country throughout 2020.
Tiffany places its bet in the Asian market. The American company, acquired by LVMH this year for 16.2 billion dollars, expects double digit growth in China next year after reopening its store in Shanghai, according to the company’s chief executive officer, Alessandro Bogliolo, during an interview in Bloomberg.
Tiffany’s growth forecasts in China happens at the same time of the opening of its largest store in Shanghai. After refurbishing in the last months, the store has reopened its doors this week doubling its commercial space. Its flagship store has two floors and its located in Huaihai Street, one of the most central and commercial streets in the city.
Tiffany’s chief executive officer believes that the company’s sales will benefit from Hong Kong measures and “all the efforts the Chinese government has done to increase local consumption, like the decrease of the sales tax, of course is an incentive for Chinese customers to purchase locally instead of flying to Japan, the US and Europe to do their purchases.”
Tiffany plans to launch its ecommerce platform in China next year
In addition to the reopening of the store in Shanghai, chief executive officer of the company wants to strengthen the Asian market with the launch of its ecommerce platform in China, and boost sales in cities where it currently has no stores.
Tiffany, founded in 1837 by the American jeweler Charles Lewis Tiffany, is owned by LVMH since November. Bernard Arnault’s holding sealed the deal for 16.2 billion dollars, becoming the largest corporate luxury operation in history.
The jewelry company has reached, between February and October, sales of 3 billion dollars, down 1.7% year-on-year. The profit of the group shrunk by 10.9%, to 339.9 million dollars. LVMH, meanwhile, ended the first nine months of its fiscal year 2019 with a turnover of 38.3 billion euros, up 16% compared to the same period of the previous year.
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