Core Insights - Longchamp has opened a pop-up store in Beijing's Sanlitun Taikoo Li after two years, utilizing celebrity endorsements and adding bakery and coffee products to attract consumers [1][2] - The brand has experienced double-digit growth in recent years, contrasting with the general decline in the performance of luxury brands, but is projected to see a decrease in growth rate from 44% in 2023 to 20% in 2024 [1][4] - Longchamp's positioning as a necessity for high-end consumers has contributed to its stable growth, but the brand must continue to innovate and meet consumer expectations to maintain its market share [1][7] Company Performance - Longchamp's sales in China reached three times the 2019 figures by 2022, with a sales increase of 84% in 2023 and plans to expand from 40 to approximately 60 stores by 2025-2026 [3][4] - In 2024, Longchamp's sales are expected to rise by 20%, with significant growth in various regions: Europe (33%), the U.S. (27%), South Korea (93%), and the Middle East [4][5] - Despite the growth, the 20% increase in 2024 is a decline from the previous year's 44% growth, indicating potential challenges ahead [4][5] Market Context - The luxury goods market in China is projected to decline by 17% in 2024, leading to a reshuffling of brands, with high-end brands likely to benefit from consumer upgrades while others may fall into the mass market [5][7] - The opening of the pop-up store comes amid a shift in the Sanlitun Taikoo Li area, where several trendy brands have exited, indicating a changing retail landscape [5][6] Strategic Positioning - Longchamp's differentiation from other luxury brands lies in its focus on high-end consumers, whose purchasing power is less affected by economic fluctuations [1][7] - The brand's strategy of opening pop-up stores instead of permanent locations allows for lower costs and greater flexibility, enhancing customer experience and potentially increasing sales [7][8] - To sustain its market position, Longchamp must continue to innovate its product offerings and enhance operational efficiency through technology [7][8]