> **来源：[研报客](https://pc.yanbaoke.cn)** # Global Luxury Goods: Retail Network Dynamics in China ## Core Content Overview This document provides an analysis of the current state and future direction of the luxury retail network in Mainland China, highlighting the impact of shifting consumer behavior and strategic brand adjustments. It discusses the decline in luxury sales, the evolution of retail strategies, and the implications for brand performance and investment. ## Key Trends and Insights - **Luxury Sales Retraction**: Luxury sales in Mainland China have returned to pre-pandemic levels, influenced by tightening income prospects and a growing number of value-conscious consumers. - **Consumer Behavior Shifts**: Chinese consumers are increasingly looking for deals, leading them to Japan and South Korea due to FX-driven price gaps. This has resulted in a decline in retail productivity. - **Retail Consolidation**: Brands are focusing on reducing their retail footprint in non-prime locations, especially in Tier 2 cities, to improve productivity and brand positioning. - **Strategic Adjustments**: Some brands are closing stores, while others are opening new, differentiated retail concepts to attract customers and enhance brand experience. - **Brand-Specific Actions**: - **Kering**: Experiencing a significant decline in store numbers for Gucci, Bottega Veneta, and Saint Laurent, with Gucci needing further closures to meet its target. - **Prada Group**: Expanding its retail presence with a +15% increase in Prada and +17% in Miu Miu. - **Dior and Hermès**: Continuing to invest in China. - **Burberry**: Reducing its off-price portfolio while maintaining a broad retail network. - **Footprint Changes**: There is a net decline of 14 retail locations between 2024 and 2026, with a -2% overall decline. - **Retail Formats**: Brands are shifting towards more experience-driven formats such as flagship stores, concept stores, and retail experiences in key locations. - **Impact of Local Brands**: The rise of Chinese leather goods brands is offering more options for value-conscious consumers, further affecting retail sales. ## Investment Implications - **Gucci**: Faces significant challenges due to poor retail productivity and brand appeal. It needs to close an additional 10+ stores to meet its target. - **Burberry**: Has the largest number of stores in China but is expected to trim its off-price portfolio if brand appeal does not improve. - **Market Dynamics**: Brands are adjusting their strategies based on consumer behavior and regional price differences. - **Performance Metrics**: The document includes a table of stock ticker performance and retail store changes, providing insights into brand valuation and future expectations. ## Regional and City-Level Analysis - **Tier 1 Cities**: See a mix of closures and relocations, with some brands like Prada and Miu Miu showing growth. - **Tier 2 Cities**: Experience more closures, particularly in non-prime locations such as legacy malls. - **Examples of Strategic Moves**: - **Hermès**: Opened a new flagship store in Sanlitun, Beijing. - **Prada**: Launched Rong Zhai Residence, a highly differentiated retail concept. - **Louis Vuitton**: Opened The Louis, an experience-driven retail concept. - **Saint Laurent**: Introduced Rive Droite boutique in Beijing's Taikoo Li Sanlitun. ## Conclusion The luxury retail landscape in Mainland China is undergoing significant transformation, driven by economic factors, changing consumer preferences, and strategic brand adjustments. Retail consolidation and the focus on high-impact, experience-driven formats are becoming central to the strategies of major luxury brands, with varying outcomes based on brand-specific performance and market positioning.