A TOTAL of 14 new outlets are being planned for five of Gucci’s brands across six Chinese cities including Dalian and Wuhan, Kering SA said yesterday.

Kering, which also owns Bottega Veneta and Saint Laurent, has been expanding its product offerings in China since the Gucci opened its doors in Shanghai in 1997, the first retail location on the Chinese mainland. The brand now has about 50 stores.

“Real estate has to provide a showcase for luxury brands, wherever the shopper is,” said Sergi Villar, Kering’s real estate director. “China is still a key growth engine for the global luxury market.”

Chinese shoppers are crucial for Gucci, Kering’s biggest brand that made up more than three-quarters of its operating profit in the first half of this year. That’s because the country’s millennial shoppers eagerly shell out everything they earn on items such as US$1,400 crystal-studded sunglasses and velvet clutches that cost thousands of dollars.

Kering’s note also pointed to a Bain & Co. report that showed Chinese shoppers accounting for a third of the annual global luxury spend of US$260 billion.

In China, Kering said its strategy is to tap on the network it’s already built in top-tier cities such as Shanghai and Beijing while opening new stores in so-called tier-2 cities.(SD-Agencies)