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prada makeup luxury lifestyle in China and is considered a status symbol: There is greater cach in being able to say you purchased your bag at the place of origin in Paris rather than at a branch in Tianjin. The Chinese National Tourism Administration noted that in 2010, more than 57 million Chinese traveled abroad and spent US$48 billion at overseas destinations, a figure that is expected to grow 17% annually over the next decade. Key forces behind this growth include increasingly convenient transnational payment methods and a stronger Chinese currency, which have made outbound tourism and associated overseas purchasing easier and cheaper. In particular, with the resources to travel overseas, many newly rich Chinese are eager to show off their wealth through high value consumption.Louis Vuitton, in particular, is a favorite shopping destination for Chinese abroad. In fact, Chinese consumers have become LV largest consumer group worldwide. While this influx of demand has been a welcome growth stimulus for LV Europe, it has also presented its own unique challenges.At LV more well known locations, such as those at Galeries Lafayette and Avenue des Champs Elyses in Paris, it is not uncommon to find queues of more than 20 tourists from China waiting to purchase merchandise. This number swells dramatically with changing exchange rates, which, when combined with Chinese consumers different shopping habits, have led to significant challenges for LV Europe in managing inventory. In the summer of 2010, when the renminbi was at its strongest against the euro, LV France burned through three months of inventory in just one month. As a result, through the end of November, LV was forced to limit to two the number of leather goods customers could purchase daily so that the store could save stock for the Christmas season. Several key Paris locations, including LV flagship, began closing an hour early to slow sales.In addition to their numbers, the shopping habits of this large new consumer group differ greatly from those of LV traditional customers. More than 95% of Chinese tourists arrive on tour buses, leading to a quick spike in customer volume and posing a challenge for staff charged