French luxury brand Givenchy will increase its presence in China as competitors cease their expansion in the market amidst a gift-giving crackdown.
The brand, owned by LVMH Group, will expand its retail network from the current 10 to 30, says CEO Sebastian Suhl.
Suhl said that he is aware that China’s gifting crackdown will affect the luxury sector, however, he is optimistic of the potential of the brand as middle class rises and the economy grows.
“Concern about the crackdown on the luxury goods market on the mainland is likely to be temporary because China needs to promote domestic consumption by boosting the consumer discretionary sector, such as services and non-essential goods,” Suhl said.
Meanwhile, Italian brand Gucci says it will not open additional China stores this year after slowdown dragged down its profits.