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    LV'S Market Prospect In China: Risk Is Greater Than Profit.

    2012/7/23 8:09:00 60

    Franchised StoresRiskConsumption Power

    LV

    Exclusive shop

    In the 2 hours after the opening of the news in Shanghai, nearly a million people have been clicked, and many people are concerned. These hits do not all represent people who like Lv. Many people still cling to the attitude of appreciation or doubt.

    Appreciation means that in China, where the seemingly luxury is not rampant, we all want to know what are the so-called "blasphemous" classics on the "foreign brand" of the "pplant". Why is it that China does not have such brand leather shops? Why does LV take root when it is popular in China? Do they not understand the rising cost of land leasing in China, and do not worry about the consumption power of China? Are they not afraid of the price of raw leather materials fluctuating?


    Since the second half of 2010, influenced by various factors, China's economic growth has been gradually slow. From the data of economic growth in 2011, China's economy has entered a meager profit era.

    Despite bottlenecks in import and export trade, e-commerce platform has played a strong role in making many domestic leather goods enterprises turn to the domestic market.

    At the moment, online shopping craze, simple, convenient, fast and cheap purchase advantage has also been used to domestic consumers, and LV's high profile landing in Shanghai is bound to arouse suspicion. Luxury store and online shopping PK will become the first doubt.


    With the increase of people's consumption, leather goods are popular with more and more people. The price of leather in the market is also rising. Foreign leather products enterprises say they will raise the price of leather products to ease the pressure brought by the rising price of raw materials.

    A data survey this year showed that the price of sheepskin rose from 24 yuan per foot to 29 to 30 yuan per foot this year, and the price of fur increased from 28 yuan to 52 yuan per foot, and the price of sheep leather doubled.


    In the past two years, LV bags, Dior perfume and other luxury goods have been the few bright spots in the retail industry.

    European debt crisis and China

    economic growth

    The global luxury market is cooling down.

    In July 13th, the British luxury boutique Burberry group led the luxury sector down. The company reported its first quarter sales growth of 11% to $63 thousand and 400, lower than the growth of 13% market expectations.

    Although the company's performance was not disastrous, it still failed to persuade nervously investors.

    An executive at Burberry said that huge opportunities for development can still be seen in China.


    China has vast territory and abundant resources, and its market is broad. However, in recent years, with the price of leather raw materials rising, the cost of labor rising and land leasing rising, many enterprises have been restricted. If there is such doubt in LV business, I think more people will doubt that LV's China trip is more risky than profits.


    A good leather bag will be liked by everyone, and not everyone will blindly pursue fashion regardless of its price. Especially in the middle and the mainstream post-1980s youth, employment, marriage and housing are all hot topics.

    As far as China is concerned, 70% of the post-80s generation will not choose high-end luxury goods, so is it true that LV will make money? This problem has also become one of the concomitant doubts.


    We all know that China is a large country in leather production, but not a big brand country.

    Every year, tens of thousands of suspected leather goods bags are seized in China, including LV, crocodile, GUCCI and so on.


    Of course, in China, we do not rule out the "outstanding" youths who are rich in the two generation, the star stalker, and Jocie Guo showing off their wealth. They have both ability and integrity.

    Maybe for them, LV only needs one mouth and opens its mouth.

    As the saying goes, "having money, spending money, and making money are hard."

    I firmly believe that as long as we earn a lot of money, we will spend money on the blade.


    I firmly believe that the name brand must be a famous brand. It must be different from the similar products, especially the international classic brand.

    But it's expensive.

    Price

    If the glory of luxury can be recognized by Chinese people, it is necessary to challenge the quality of diligence, thrift, responsibility and filial piety of the Chinese people. Although I look at the whole world and count the news in a thousand and one ways, I still think that there are very few people in China.

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