Luxury Brands Betting Big on Experiential Shopping to Boost China Sales

SHANGHAI, July 9, 2025 — At the turn of millennium, global luxury brands were at the peak of spreading a footprint in newer geographies.

The sailing was smooth as shoppers splurged to an extent that even developing markets registered whopping sales.

First the economic recession of 2008 and subsequently, down the years COVID-19 pandemic tightened string on wallets.

Brands including Prada, Shein, Louis Vuitton and Hermès have led their presence in Chinese market, with a “made to measure” approach. In simpler terms, luxury brands, before foraying into China and other Asian markets, would always focus on personalised needs of the native consumers. 

Brands such as Louis Vuitton, have now also panned focus on designing their stores innovatively.

Experiential Shopping 

In today’s new-age luxury market, brands have many challenges to meet.

It is not just about moulding the range of offerings, as per the demand of a particular country. The other litmus test for brands, goes much beyond providing buyers, with a touch and feel of products.

Offering shopping assistance and reward points at the outlets is a passé.

Luxury brands offering shoppers with an experiential shopping is in vogue.

Be it clothes or accessories, post-pandemic period saw buyers having tightened spending on discretionary purchases - luxury branded handbags among them.

LV’s Ship-Shaped Store

At the receiving end of a subdued demand for luxury goods, Louis Vuitton has decked up its latest Shanghai store, different from an average luxury flagship.

The 30-meter-high, ship-shaped store, “The Louis”, is tagged as an experience. It houses an exhibition space and cafe in Shanghai's downtown Nanjing Road shopping strip.

“The Louis”, which had a grand opening last month, is a crowd puller. People are beelining the store, to get clicked with the uber cool artefacts and post the pictures on social media.

However, LVMH-owned Louis Vuitton is hopeful that the innovative store can set the cash registers ringing. Converting customer foot traffic into sales is a tough task, especially when the Chinese consumers’ spending on luxury goods has slowed.

LVMH has moulded its business strategy, in line with the other luxury brands who are now not stepping out from being transactional model - where a shop merely sells goods to customers - to wooing customers with "experiences" that ultimately spur growth.

The stakes are high for the luxury brands, which for years have relied on brisk sales in China to fuel their global growth, and ambitions, but are now facing a slowdown in demand in the world's second-biggest economy.

The size of the Chinese market declined more than 18 percent last year to around 350 billion yuan ($48.80 billion) and sales are on track for a flat performance in 2025, according to estimates from consultancy Bain.

Tumi Walks the LV Way

Tumi’s debut flagship store in Shanghai, launched this week has also focused on being an architectural marvel.

Much like Louis Vuitton’s latest Shanghai store, the exterior of the flagship Tumi store grabs eyeballs. It defines the essence of Tumi’s innovative design philosophy.

The sleek, modern structure is decked with metallic finishes and an eye-catching façade inspired by Tumi’s iconic 19 Degree collection, renowned for its angular and futuristic design.

The bold, clean lines of the store’s exterior are a visual treat, attracting shoppers and inviting foot traffic in one of Shanghai’s busiest commercial districts.

Much different from an image of a regular store, Tumi’s outlet is designed as an architectural landmark that perfectly embodies Tumi’s cutting-edge approach to design and craftsmanship.

Soon after stepping into the store, customers are welcomed into an immersive shopping environment that blends luxury with functionality.

The interior design follows a minimalist and sophisticated approach, with a thoughtful combination of marble accents, soothing neutral tones, and contemporary metal and stone textures. This shopping environment creates an elegant yet welcoming space, setting the stage for a premium shopping experience. The store is designed not only to showcase Tumi’s high-end products but also to provide an environment that encourages customers to linger, explore, and interact with the brand’s offerings.

The store is designed not only to showcase Tumi’s high-end products but also to provide an environment that encourages customers to linger, explore, and interact with the brand’s offerings.

Inputs from Saqib Malik

Editing by David Ryder