Famous French fashion house Christian Dior on Monday said it plans to spend $30 million (four billion yen) on a new flagship store in Japan by July next year.

The firm will open a four-storey megastore in an area in the centre of Tokyo known for its trendy fashions and styles.

"This store alone will generate sales of three billion yen in its first year of operations," said Bernard Arnault, president of Christian Dior and parent company, Moet Hennessy Louis Vuitton SA.

He added: "In the current year (to December) sales at Dior in Japan will be more than 10 billion yen. Our success here is thanks to the exceptional quality of our products and the extraordinary creativity of John Galliano."