LV Walks The Mass Market In China

< p > China's economy is rising rapidly. High-end consumer groups have new demand for luxury goods. LV has begun to fall in China and other important markets. It has gradually lost its sense of mystery and has been abandoned by many high-end consumers who are seeking to "dilute the value of things". In addition, LV's Shanzhai products emerge in an endless stream in the market, which seriously affects its brand image.

China's high-end consumer is abandoning LV because of internal and external troubles, and Louis Weedon is losing its high-end luxury brand image.

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< p > < strong > recognize the great potential of China market < /strong > < /p >

< p > < strong > mass line preemption share < /strong > /p >

"P," even 10 years ago, we would say that China will become the world's largest luxury market one day.

But today we don't talk about the future. It's already happening. "

Ande, Louis Weedon's global executive vice president, used to define the Chinese luxury market in July this year.

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< p > data show that China has become the world's second largest consumer of luxury goods.

In 2012, this figure could reach US $14 billion 600 million, giving China the top spot in global luxury consumption.

In fact, Chinese consumers have already demonstrated their amazing consumption power overseas.

The report pointed out that Asian luxury goods consumption in the European market last year totaled 69 billion US dollars, and China consumed nearly 50 billion dollars, which is 4 times the domestic market.

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< p > in the face of such a huge luxury market, Louis Weedon group has carried out the related strategic plan several decades ago.

Affected by rapid digestion, LV has opened up more stores in China in recent years, including more than 40 stores in China.

At the same time, the main products in China are low-end products. Its high-end custom products are rare in China. In China, LV is also ridiculed as "ass brand" because of its spelling.

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< p > experts say that unlike luxury goods, the fast moving consumer goods industry is characterized by convenience, low brand loyalty and strong substitution.

FMCG hopes to control the terminal channel through large area advertising and distribution. The main factor that affects the success is high enough distribution rate and effective channel control.

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< p > in the past, most Chinese consumers thought that LV was a symbol of luxury.

A mid-range LV leather bag, priced at around 10 thousand yuan, is expensive for most people.

But in recent years, with the increase of income, many white-collar workers can afford it, which has made LV sell more and gradually lose its sense of mystery and dignity.

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P, a senior luxury brand employee, believes that in the early days of LV development, LV has won the recognition of the aristocratic Palace by quality. However, LV has been selling low-end products of LV in China. Overseas buyers of these low-end LV products tend to be "Bao" or "aunt".

LV's high-end custom products are rare in China, so the consumption level of LV consumers in China is not high.

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Less than P, experts say, with high returns, it is the weakening of its brand appeal.

Especially in the context of European debt crisis, low positioning of products and changes in consumer groups, LV is being abandoned by China's high-end consumer groups, moving towards the fast moving products industry and moving towards "grass roots".

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< p > < strong > Shanzhai products emerge in endlessly, < /strong > /p >

< p > < strong > high-end consumption gradually lost confidence < /strong > /p >

< p > over the past few years, the Chinese market has been "evergreen" and "rocking Qian Shu" in the LV global market.

This also made it catch the interests of the counterfeiters, causing some "cottage products" to debut. < /p >

< p > industry insiders say that genuine products are more expensive, plus some people's blind comparisons. Many people have to choose to buy Shanzhai products.

The prices of cottage products vary widely, but they are much lower than genuine ones.

The lowest is even about 100 yuan, and the high imitation products have more than 1000 yuan.

High imitation products are commonly referred to as goods, whether they are materials or zippers and so on. They are almost the same as genuine products. It is very difficult for ordinary people to distinguish the authenticity from the naked eye.

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In addition, LV's anti counterfeiting operation in China has just started. In the short term, it is also concentrated in Beijing, Shanghai and other first tier cities.

Nowadays, LV counterfeits are rampant across the country. Many rich people even consider buying fake products as fake.

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< p > expert analysis shows that the main reason why high-end consumers are willing to spend a lot of money on luxury goods is the core value of the brand, which can prove and enhance their identity.

The popularity of luxury goods and counterfeit goods has led to a sharp decline in the value of luxury brands. Many high-end consumers have disagreed with LV. They even think that buying LV products is to reduce their identity.

As a result, many people turn to other luxury brands with less niche products and fewer copycat products.

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< p > < strong > self dropping to enter the three line city < /strong > /p >

< p > < strong > the core value of the brand loses its advantage, < /strong > /p >

< p > "LV must be popular. It is not called luxury brand. Its strategy is to expand rapidly."

Zhou Ting, President of the Institute of wealth and quality, thinks so.

In her eyes, "luxury" is a relative concept, but the "top niche brand" can be called luxury.

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< p > 1992, LV entered China for the first time.

In recent years, LV has broken through the layout strategy of China's second tier cities, and plans to enter three tier cities in order to gain higher market share.

But whether LV, which is losing its core brand appeal, can achieve good sales performance in China's two or three tier cities, it seems that the future is not optimistic.

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< p > there is no denying that with the acceleration of urbanization, the wealth of the two or three tier cities is growing and the consumption power is increasing.

Since 2007, LV's new stores in China are mostly distributed in two or three line cities, such as Changsha, Taiyuan, Wenzhou, Nanning and so on.

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< p > but there is news that LV sales in some high-end consumers are concentrated in the first tier cities, and store sales are down by 5% to 10% every year.

Although internal adjustment is being intensified, hoping to retain top consumers, the result is disappointing.

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< p > "the polarization of China's luxury market is inevitable."

Ouyang Kun, China's chief executive of the World Luxury Association, believes that in the next 1 to 3 years, the first tier luxury brands will face the shuffle of China's high-end market.

On the one hand, with the continuous influx of new consumers, the level and positioning of luxury goods will become more and more blurred. In order to show their identity, some high-end consumers have to give up the luxury brands that most people like and choose more advanced products.

"It's like if most subordinates use LV and GUCCI, the boss will buy Hermes."

On the other hand, Ouyang Kun pointed out that the high level consumers in Beijing and Shanghai have become increasingly mature, and will gradually tend to buy luxury goods of "self individuality" and leave the public orientation.

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< p > original luxury goods do not win by quantity. They are particular about their uniqueness. They exchange high quality products for high profits. There is a meaning of "three years without opening and three years of opening."

But now, under the circumstances, LV is promoting low-end products in China, trying to seize more market share, achieve the effect of small profits and quick turnover, and increase the total profit, which has a strong impact on its brand value and uniqueness.

If LV no longer takes some measures to change the status quo, it is likely to lose its luxury.

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