Dubai: While most people think the financial crisis or economic recession is bad, there's one gentleman, who thinks it could be good.
"It helps somewhat realign the system from excesses," says Yves Carcelle, chief executive officer of Louis Vuitton — one of the world's biggest fashion brands.
"Over the last few years, lots of companies expanded businesses without reasoning and seriously looking at the economic rationale behind them, mostly based on ego trips. They are the ones currently closing down the stores, not us. In fact, we are growing and expanding our network."
Carcelle was in Dubai to open Louis Vuitton's first ‘Global Store' in Dubai — it's first such store in the Middle East. This will be the brand's third retail outlet in Dubai where it has two other boutiques at Bur Juman Centre and Mall of the Emirates.
"Each time there's a recession, we gain our market share," he said.
Louis Vuitton, which has 439 stores worldwide, opened the ‘Global Store' at Dubai Mall on Sunday.
Louis Vuitton Malletier, commonly referred to as Louis Vuitton, is an international French luxury fashion house specialising in trunks, leather goods, ready-to-wear, shoes, watches, jewellery, accessories, sunglasses, and books.
Having started in 1854, it sells its products strictly through its own retail stores, small boutiques in high-end department stores and online.
Carcelle, who flies around the world 150 days a year to meet colleagues all over the world, is only the sixth chief executive of the 155-year-old company. He is also the first chief executive of Louis Vuitton who is not related to the Louis Vuitton family.
Carcelle spoke at length about the company's long tradition, history and fine craftsmanship that have raised its profile in the global fashion industry over the last one-and-a-half century. "History, without creativity, is boring. Creativity without history makes you ‘lost'," he says.
Expansion plans
Louis Vuitton is planning to expand into Lebanon next summer, and will open a store in Mongolian capital Ulan Bator in two week's time, he said.
"We are also planning to expand our store at the Mall of the Emirates," Carcelle told Gulf News in an exclusive interview.
"I can announce that we are signing a contract to expand the existing store. This reflects our firm belief on Dubai's economy which I expect to recover in the coming months."
The company has been in the region since 1983.
The new Global Store spans over 645 square metres and flows across one floor elegantly sub-divided into sections showcasing a large variety of products for both men and women.
The crisis held out positive signs for Dubai, he said. "The current economic crisis is somewhat good for Dubai. It was moving too fast, with too many projects, too many malls," he said.
"Perhaps it's a good time to take a breath and recap and focus on those projects that have long-term prospects and that are sustainable."
He said that, despite the global economic situation, his company remained in growth mode.
"While others are closing shutters, we are opening more. Our latest opening at the Dubai Mall is a proof," he said.
"When we look at any project, we look at the numbers and see if they are attainable. Those who grew aggressively without proper financial planning are suffering."
He remains optimistic of the company's growth.
The parent company LVMH Moet Hennessy recorded 2.02 billion euro (Dh10.9 billion) in net profits last year against 17.19 billion euros in revenues.
During the recession, people rely on durable products — a key factor in Louis Vuitton's success, he said.
"Our brand philosophy, its eternal value and 100 per cent quality and durability are key to our success. We are never on sale and do not compromise on the quality and durability. That's why, during recession, when people reduce spending, they go back to their durable collection and use them. That's one of the reasons we are still growing."
