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MELBOURNE, Oct. 19 (Xinhua) -- Iconic fashion brand Louis Vuitton will reopen its expanded Melbourne store on Tuesday spurred by an influx of spending by Chinese tourists.
The store, located in Melbourne's retail hub of Collins Street, has undergone a major renovation adding a further floor to cope with the rising demand for the label's designer products.
"It's an iconic Melbourne building," Philip Corne, chief executive of Louis Vuitton Oceania, told Fairfax Media on Monday.
"We have expanded the store upstairs but we have also respected the heritage aspect of the building. We have been at the Paris end of Collins Street since 1986 now, and we know this is one of the most beautiful shopping boulevards in the world and much loved by the people of Melbourne."
Corne said the French high-fashion brand had seen a spike in profits at its Melbourne flagship, despite Australia's presently unfriendly retail landscape.
"Inbound Chinese customers are a big part of our business, but don't underestimate local buyers," Corne said.
"We have all read that the retail conditions are tough, but we are growing at the luxury end of the market."
Fairfax Media reported on Monday that Chinese holidaymakers are responsible for about a quarter of all global spending, with 7 percent of their purchases made on luxury items.
Some overseas markets, like Australia, offer Chinese buyers the incentive of reduced taxes on these products and can also often be purchased duty-free.
According to a recent IBISWorld report, Australia's luxury item industry is worth an estimated 1.4 billion U.S. dollars to the economy each year, with an 8.6 percent increase in annual growth of the market expected over the course of the next four years.
The boutique Melbourne store, which is said to cost near 1.4 million U.S dollars to rent per annum, reopens on Tuesday.
