A giant Louis Vuitton trunk marquee illuminates the Hong Kong skyline as the global brand celebrates its 150th anniversary with a glittering party in the city.

Hong Kong joined Paris, New York and Tokyo as host cities in a glittering event held in a 70-metre-long - about the size of three tennis courts - Louis Vuitton trunk marquee built on the Tamar site overlooking the famous Victoria Harbour.

CEO and chairman of Louis Vuitton and LVMH Fashion Group, Yves Carcelle, said the celebration which attracted over 2,000 guests, represented a vote of confidence in the Hong Kong market, illustrated by Louis Vuitton's long-term investment in the city. Louis Vuitton has more flagship stores in Hong Kong than anywhere except Paris and Tokyo.

"Hong Kong is our Asia Pacific headquarters for 14 countries in the region. Its strategic location, its importance as a fashion capital in this part of the world, coupled with its efficient communications make it the perfect city for us to do business," said Mr Carcelle who was joined at the celebration by Patrick Vuitton, a fifth generation member of the founding family.

Hot on the heels of Louis Vuitton’s high profile party, were the visits of Italy’s top two iconoclastic designers – Giorgio Armani and Miucci Prada. Ms Prada in Hong Kong to open her flagship store in Central, said: “Hong Kong is no longer just the international platform for the Far East but represents a launch pad into the Chinese market. It creates the trends and acts as a showcase for this market.”

Prada has 17 stores in China and will have 30 by end 2005. Armani was on a tour to Beijing and Shanghai where he opened a flagship store on the Bund, signalling an increased commitment to the mainland market where the fashion group hopes to open 30 shops by 2008.

International brands rush to expand

The large-scale events held by Armani and Louis Vuitton underline the aggressive expansion to open flagship stores in the city by other international luxury brands taking advantage of a rebounding economy, increased visitor arrivals especially from the Chinese mainland and competitive rentals.

According to Lawrence Wu, leasing general manager for Sun Hung Kai Real Estate Agency, numerous international retailers are keen to come to Hong Kong as the city is a springboard to the burgeoning mainland market. "Hong Kong is also a showcase for affluent mainlanders who see the city as a shopping destination for luxury goods." (Details in Designer stores rush to build international brands in Hong Kong).

Millions more mainlanders are expected to visit Hong Kong with the recent announcement that the Individual Travel Scheme has been extended to a further 16 of China's wealthiest cities. The scheme was introduced last July when mainland authorities began exempting some travellers from travelling in tour groups while visiting Hong Kong. Since then, more than 1.6 million mainlanders from Shanghai, Beijing and 14 cities in Guangdong (southern China) have visited Hong Kong and according to government figures, have brought more than HK$9 billion (US$1.15 billion) in economic benefits to the city.

The Hong Kong Tourism Board expects the city to receive 11.2 million mainland visitors this year, up from 8.5 million in 2003. With each mainland visitor spending an average of HK$5,600 (US$719), a further shot in the arm for Hong Kong's retail sector is expected.   

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