The cosmetics hub is expected to cost the Fenty Beauty owner $154m and is scheduled to open in Shanghai next year
Luxury French conglomerate LVMH is powering on with building its largest beauty e-commerce sales and storage hub in the Asia-Pacific region, according to Business of Fashion.
Scheduled to open in Shanghai, China, at the end of next year, the site covers nine hectares and is expected to cost the Fenty Beauty owner almost one billion yuan or US$154m.
The hub will serve as an industrial stronghold for its e-commerce packaging and be an epicentre for dispatching the company’s beauty and fragrance products.
Despite refusing to sell cosmetics indirectly to the Chinese parallel market during the pandemic, the Asia-Pacific region continues to be a lucrative market for the group’s beauty and cosmetics sales, accounting for 45% of sales across the region, excluding Japan.
LVMH also said its cosmetics and perfume brands showed ‘good resilience’ throughout 2020, which was directly due to growth of skin care and online sales in Asia.