Tiffany enters Vietnam as world's richest man expands LVMH Asia

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Crazy rich Asians top sales for French luxury group that also owns Dior, Moet

Tiffany unboxed a new store in Ho Chi Minh City, marking its foray as a direct investor in Vietnam. (Photo by Lien Hoang)
LIEN HOANG, Nikkei staff writerApril 21, 2023 15:24 JST


HO CHI MINH CITY -- Tiffany has unveiled its first jewelry shop in Ho Chi Minh City, courting well-heeled Vietnamese in the latest expansion for the brand since it was taken over by LVMH.

With a soft opening on Friday, the 186-year-old jeweler has increased its presence in Asia, the top region by sales for parent group LVMH. Tiffany has a distributor in Hanoi but directly runs the Ho Chi Minh City store. After a price battle to acquire the U.S. company, France's LVMH has spent aggressively on Tiffany's global revamp, from a Beyonce ad blitz to a shift toward direct operations.


Bedecked with a chandelier and cocktail bar, the store sits on the old Rue Catinat, a main shopping street where French colonizers built an opera house and cathedral.

As China reopens, HSBC expects "Asia's sales growth outperformance" will "trigger higher margins" for LVMH, whose CEO Bernard Arnault tops Forbes' billionaire list.

Tiffany invited influencers to its Ho Chi Minh City store, the jeweler's first directly operated location in Vietnam. (Photo by Lien Hoang)


HSBC said in an April 14 note that Tiffany's margins will be "lackluster" for now, given the hefty investment made to turn around the jeweler under LVMH's management, before spiking as it spends time on product development and retail expansion. The bank estimates that Asia accounts for 37% of LVMH sales.

The number of rich Vietnamese jumped 110% from 2016 to 2021, Asia's fourth-highest growth, after Thailand, Singapore and China, according to the Knight Frank Wealth Report, which covers people with $30 million or more. But the figure has dropped recently amid a corruption crackdown on executives, COVID shutdowns and declines in global trade. The growth figure also came from a small base in the country, where per capita income is $4,100.

LVMH's four biggest earners are Louis Vuitton, Dior, Hennessy and Tiffany, according to HSBC. These brands are among the luxury businesses that cater to Asia's moneyed class with weekend getaways, private stores and limited-edition birthday gifts.

Tiffany has been inviting singers, Instagram influencers, high spenders and corporate partners to the Ho Chi Minh City branch to sip lychee martinis while viewing its gold bracelets and gems. The branch opening coincides with this month's return of the New York flagship store as the company, which once sold a necklace to U.S. President Abraham Lincoln, gives Tiffany a 21st-century sheen.

Tiffany enters Vietnam as world's richest man expands LVMH Asia

Crazy rich Asians top sales for French luxury group that also owns Dior, Moet

asia.nikkei.com

 

[tower9]

Vietnam is gonna be blinged out in twenty years

 

[S10]

Trash quality brand

If you're paying the same price, go for Van Cleef.