Hermès has opened a new, larger boutique in the Chinese city of Nanjing, a sign that the luxury sector is betting on a strong comeback from its Chinese customers after three years of drastic restrictions due to COVID-19.

The French group, which opened its first store in Nanjing in 2010, has set up shop in the upscale Deji Plaza shopping mall, where, on two floors, it offers a range of products from its famous scarves and leather accessories to jewelry, clothing and home furnishings.

European luxury brands continued to invest in China, which is set to become the sector's largest market by 2025, despite a year disrupted by the various containment measures imposed by the authorities in an attempt to contain the COVID-19 epidemic.

The announcement, at the end of December, of the easing of travel regulations in the country boosted the share prices of global luxury companies, including the largest, LVMH.

China, where Hermès has 27 boutiques, should represent an important source of growth in the coming months, while Europe is facing an energy crisis and the US economy is slowing down.

Luca Solca, an analyst at Bernstein, predicts that sales of luxury goods could increase by 25% to 35% in the country this year, while growth is expected to be around 5% to 10% in Western countries. (Reported by Mimosa Spencer ; French version by Jean Rosset ;)