LV Walks Down The Altar And Ushering In A New Pattern

< p > > the world's < a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > a target= "_blank" href= "_blank".

< p > LVMH group, as the world's largest luxury group, is suffering from the decline of its performance. The Louis Vuitton brand that has propped up the half sky of the group is also stepping down the altar and gradually abandoned by the domestic high-end consumers.

From the popular luxury brand to the abandonment of high-end consumers in China, why does Louis Vuitton suffer from the double cold days in China? < /p >

< p > < < strong > > LVMH group performance in Waterloo, China, < /strong > /p >

< p > reporter learned that the world's largest luxury group LVMH (MOET & CHANDON Hennessy Louis Weedon group) recently released the two quarter earnings report, the results showed that the actual sales growth in the two quarter was only 1.3%, a sharp decline compared with the 6% in the first quarter, of which Louis Vuitton (Louis Weedon) belongs to the fashion leather department sales growth compared to 10.7% in the first quarter decreased by 75%.

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At the same time, P group's operating profit margin in the first half of this year has shrunk from 19.8% in the same period last year to 18%, and its net profit is 1 billion 509 million euros. LVMH

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Due to the significant impact of the decline in performance, P shares were hit hard and plunged 7.2% on Friday, the biggest single day decline since 2009. "LVMH"

It may be influenced by the LVMH group. Its competitor, the Swiss group, fell by 2.27%, while the share price of Burberry group fell by 1.59%, and the share price of France's Open Cloud group fell by 4.93%.

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< p > > it is learnt that the income of LVMH group has maintained a growth momentum in the US and Asia (excluding Japan). The US performance in the two quarter outperformed the previous quarter. Its management pointed out that the decline in performance was mainly due to the shrinkage of the Asian market, and the weakening demand in the Chinese market was the reason why the brand performance could not be overlooked.

However, data show that in the 2012 fiscal year, China's Asian market is the largest market of LVMH group, accounting for 28% of the total revenue.

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< p >, for this, the Group Chairman and CEO Bernard Arnault openly told the media that the group has strong brand strength and resilience, which gave them good adaptability in the uncertain economic and financial environment in the first half of the year.

He is confident of the group's performance in the second half of the year, whether it is expanding its market share in the traditional market or emerging in the new field full of potential.

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< p > < strong > > brand value decline leads to high-end consumers abandoning < /strong > /p >

< p > reporters found that the response of the group to sales and profit targets failed to meet market expectations. The response from the company was that the number of shopping travelers in Hongkong, China, was reduced, especially due to the decline in the number of tourists from the mainland.

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< p > reporter found that in the Louis Vuitton shop of the mainland, the scene of people's head and shoulders in a few years ago had ceased to exist.

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From P's official analysis and market phenomenon, it is easy to see that domestic consumers are gradually away from the Louis Vuitton brand. Why did consumers become obsessed with brands in a few years? < /p >

< p > to this, industry experts say that Louis Vuitton brand is an early luxury brand entering the Chinese market, meeting the psychological needs of consumers showing off their wealth and displaying their self worth at that time. Its LOGO has quickly become a classic consumer's competing purchase.

At that time, the market competition was not enough, and consumers could choose fewer brands. This also provided fertile ground for the rapid development of Louis Vuitton in China at that time.

However, as consumers continue to upgrade, and Louis Vuitton brand management strategy continues to sink, many consumers in the first tier cities choose to gradually stay away from the ubiquitous Louis Vuitton brand.

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< p > > a href= "http://www.91se91.com/news/index_f.asp" > LV < /a > MH group and Richemont group have expanded their speed in China in the past 2011-2012 years, especially Louis Vuitton.

But from the pace of its expansion, we can see that the brand began to sink, and the two or three tier cities, or even four tier cities, were gradually separated from the first tier cities.

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Zhou Ting, President of the Institute of wealth and quality research, said that the rapid development of China's luxury market in the past few years has created some bubbles. However, the brand has not correctly realized this, and has chosen to continue to sink and accelerate the P.

Although we saw pretty numbers in the financial reports for a period of time, the value of the Louis Vuitton brand was greatly reduced.

The scarcity and preciousness of luxury goods have been hard to embody in Louis Vuitton.

This will inevitably lead to some high-end consumers choose to stay away from or even abandon the brand.

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< p > < strong > > luxury goods will usher in "niche" and "public" pattern < /strong > /p >

< p > > according to Bain consulting statistics, China's luxury market in 2013 was 116 billion yuan, an increase of only 2% over the same period last year.

In 2013, Chinese spending on luxury goods fell by 15%.

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< p > data show that the total consumption of luxury goods in the Chinese New Year is $350 million this year, compared with $830 million last year and 57.8% in the past two years, the lowest in ten years.

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"P", the industry said that domestic luxury consumption is subject to policy fluctuations, and it can not just be attributed to policy impact. Quality, service and price differentials are also the reasons why Chinese people are unwilling to consume luxury goods in China.

The survey data show that when choosing luxury brand, the most important factor in the choice of products is 72.2% of the products and 54.5% of the products.

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< p > Zhou Ting told reporters that with the growing maturity of consumers, the future "a href=" http://www.91se91.com/news/index_s.asp "luxury" /a will usher in a "niche" and "public" pattern.

Those top luxury brands are favored by high-end people due to the scarcity of material, technology and design. They will usher in niche market opportunities for luxury goods.

Now the luxury brands in the market need to popularized the strategy to get close to consumers, so as to improve the market share.

For example, a large number of social media will be used to communicate effectively with the mass consumers, and the brand should adopt a pro citizen strategy in terms of pricing.

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