LVMH, the world’s leading luxury goods company, is relocating some of its Hong Kong-based employees from its Moët Hennessy liquor unit, according to a report published this week by The Wall Street Journal. The number of employees relocating or whether employees from other units will be relocated is not publicly known. However, LVMH-owned Louis Vuitton, Bulgari, Celine, Fendi and Givenchy have already moved staff out of Hong Kong last year.
LVMH is only one of many multinational corporations considering the move out of Hong Kong due to an aggregation of recent issues including new security laws imposed by the mainland and the pandemic. Many companies are already seeking selected headquarters in Asia and no longer see a future in Hong Kong. Government data shows that companies and residents alike are leaving Hong Kong – more in 2020 than in any year since the financial crisis.
At the end of last year, LVMH saw sales in Hong Kong drop 40 percent due to effects from city-wide protests and the pandemic. According to Financial Times, analysts predict that many luxury brands may close their Hong Kong stores.
LVMH boasts a prestigious portfolio of 75 luxury brands. Its 23 brands under its Wine and Spirits portfolio include an unmatched assortment of Champagne and sparkling wine producers across the globe. kw