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    Patek Philippe Has Both Fame And Fortune, But Louis Weedon Has A Crisis.

    2013/11/5 18:50:00 37

    Luxury BrandsPatek PhilippeLouis Weedon

    < p > some brands in the luxury market are facing the same challenge.

    Too many stores, products everywhere, sales sluggish, customers fled, all of which indicate a decline in brand value.

    As consumers buy more and more, their attributes begin to turn from luxury to luxury goods.

    And this is the difference between the brand and the brand.

    The fundamental reason is the pursuit of profit maximization.

    The essence of business is profit seeking, and these brands may be destined to become profitable tools on the day they are acquired, and making more money becomes a major goal.

    < /p >


    < p > > a href= "http://www.91se91.com/news/index_c.asp" > Patek Philippe < /a > can maintain brand's superiority and height continuously, which is directly related to Patek Philippe's balance ability.

    What is more valuable is that Patek Philippe has precise control ability in many aspects.

    < /p >


    By the end of 2008, when Thierry Stern took over the fourth generation of Patek Philippe's P, many important decisions were made, and one of them increased production.

    The increase in output is moderate. According to Thierry Stern, "it is to increase production under the premise that quality is not affected."

    This is understandable, but in fact, he has not said nothing yet, that is to increase production without flooding the product and reducing the brand value.

    This is a problem of controlling the proportion of capacity and demand. Patek Philippe generally controls the proportion of production capacity and demand between 1:1.2 and 1.5.

    Under the current circumstances, Patek Philippe's output increased by less than 2%.

    < /p >


    < p > although a few years after Thierry Stern took over, China's "a href=" http://www.91se91.com/news/index_c.asp "clock Market" /a "once flourished, and many brands went forward.

    Thierry Stern wants to balance between Europe, Asia, the United States and the Middle East.

    The 12 year's data show that Europe accounts for 40% of Patek Philippe's global market, while Asian sales, including China and Japan, account for 33% of global sales, followed by 17% in the US market.

    The reason for controlling this ratio is the responsibility of Thierry Stern for family businesses and is unwilling to let the brand take too much risk in the market.

    < /p >


    At the same time, Patek Philippe is very cautious about product design, even if the color of the dial is changed, P will also consider it carefully.

    When Thierry Stern proposed to launch the ash disk, it had been discussed for a long time in the family. It was finally persuaded by Thierry Stern.

    The reason why Patek Philippe did this is to maintain a unified and independent brand style for the world, but at the same time, it will strive for innovation and progress.

    < /p >


    The case of P is the opposite of Patek Philippe, that is LV.

    In 2010, LV declared that it would break through the layout strategy of China's second tier cities and plan to enter the three tier cities in order to gain higher market share.

    LV watches and jewellery, President of North Asia, said the expansion will extend to three or four tier cities.

    The rapid expansion of LV gradually reveals the characteristics of the industry.

    < /p >


    < p > because of the popularity of a href= "http://www.91se91.com/news/index_c.asp" > LV < /a > brand, many high-end consumers who are seeking "rare things are expensive" are abandoned.

    "LV must be popular. It is not called luxury brand. Its strategy is to expand rapidly, including Gucci, which is losing brand appeal gradually."

    Although "luxury" is a relative concept, the "top niche brand" can be called luxury.

    < /p >


    < p > > in the 2012 China luxury report released in 2012, through the survey of 3754 high asset groups (10 million or more) in the Chinese market, it shows that the luxury brands with high repeat buying rate are Chanel, Herm s, Cartier, BV and Dior.

    In the ten luxury brands that best reflect consumer tastes, there is no LV.

    Only in the "luxury brand fake visibility list", LV topped the list.

    LV's fake products have already covered all channels in China, including purchasing agents, electricity suppliers, distribution agents, etc.

    The spread of counterfeit goods has led high-end consumers to abandon it quickly. Research shows that 94% of the rich say they will not consume the most counterfeit brand, LV is among them.

    For ordinary consumers, they do not want to buy real LV.

    From the point of view of cost performance, they prefer to go to Taobao or buy high imitation goods.

    < /p >


    < p > both high-end consumers and the general public are gradually abandoning LV. Although there are new consumers buying LV, Zhou Ting believes that the quantity is far less than abandoning LV, which is an important reason for the decline of LV performance.

    < /p >


    < p > corresponds to the unsightly in the financial report.

    Since last year, LV, which accounts for 50% of LVMH group's profits, has dragged down the overall growth of the group.

    Although smart Arnott realized a lot of problems with LV a year ago, he started a series of corrective measures: upgrading product lines, refurbishing stores, suspending the expansion speed, going to logo in the Chinese market, raising prices in the Japanese market, and so on, but it seems to have little effect.

    Despite the popularity of high-end new products, it has little impact on overall performance.

    < /p >

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