Hermes rethinks strategy for China

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Hermes is the latest in a line of luxury suppliers to pin its Asian travel-retail business to the Chinese traveller

Luxury company Hermes is to focus its Asia/Pacific retail strategy on locations which have a strong Chinese following.

Hermes is to open an 80sq m (863sq ft) stand-alone store at Beijing International airport in December, replacing a smaller outlet which opened near the departure gates in November 1999. The company also eamarked Shanghai's downtown mall Plaza 66 and Hong Kong International Airport as potential venues.

As part of the refocus Hermes is to close its 24sq m (259sq m) corner at Pudong International airport in Shanghai at the end of May and will not renew its contract there with retailer King Power Hong Kong. The corner opened the corner in April 2001 to sell a select range of the company's merchandise.

A company spokesperson told TRW: "For the time being the group prefers to concentrate in those locations where it is sure to offer the best shopping experience, in particular to its growing number of Chinese customers."