Shanghai'S "LV Building" Has A Bad Performance " The Group Is Waiting For The Price To Sell.

In 1984, Bernard Arnott, a real estate developer in France, bought Dior, a high fashion house, and opened his dream of building a luxury empire.

Before that, Arnott's real estate business also developed quite steadily.

He sold his family business building department to his father, earning 40 million francs, and taking advantage of his father's hand to win the power of family business.

In 2009, China has long been a

Arnott, the head of the imperial --LVMH group, started her career again and became a real estate developer. In that year, the Shanghai SHANG Jia center started construction. It was the first large shopping mall built by LVMH in China (the industry is often referred to as the "LV building").

But this time, Arnott, a crafty and iron fist, seems to have failed.

"LVMH is looking for a buyer to sell the LV building."

Informed sources told me.

On many occasions, when talking to luxury people about this innate "LV building" with aura, they always shake their heads and sigh, "it's so cold and cheerless."

This and "

"The opening of the earth was far away from the great expectations it had been given.

Because of the backing of LVMH group and the collective effect of many luxury brands and the brand effect, the "LV edifice" with the advantage of scale is regarded as the only luxury shopping center that can be opposed to Hang Lung in the future. It also hopes to become the focus of shopping in Shanghai as a luxury customer in the Yangtze River Delta region.

At that time, such expectations were not a luxury. Luxury sales in the Chinese market were in a golden age. In 2009, LVMH sales in the Asia Pacific region, led by the Chinese market, grew by 23% over the same period last year. The next year it jumped to the largest market in the world.

However, the abrupt change of China's macro environment at the end of 2011 and 2012 has made the luxury group and many brands unprepared.

The government's sustained anti-corruption and macroeconomic slowdown and the growing maturity of Chinese luxury customers' consumption concept have led to a drag on the Chinese market, which used to drive the global growth of luxury brands.

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Poor performance of LV building was rejected by LVMH

After four years of construction, the "LV building", which was officially opened to the outside world in the second half of 2013, ushered in a more difficult market environment.

On the one hand, the market demand is weakening. On the other hand, high-end shopping malls are springing up all over the country. In 2013, Shanghai's newly opened high-end shopping centers include Jingan Kerry Center, K11, moon star global port and Huanmao iapm mall.

The high-end shopping malls in other cities are also rising from row to row.

But the homogenization of brand choice and the lack of new experience and service have brought these high-end shopping centers to a more difficult situation.

"The problem facing high-end stores is how to make consumers willing to experience it here. Does your brand have any characteristics? Do you create a special lifestyle or service?" LV building "has no special features.

The above pointed out.

At the same time, it was hoped that the "LV mansion" would promote the upgrading of Shanghai Hongqiao business circle and focus on the location and location of consumers in the Yangtze River Delta area. Now it seems to be a wrong location case: no matter for the consumers in the field or the rich areas in the Palaearctic generation, the surrounding facilities and the inconvenience of pportation have become one of the reasons why people do not gather popularity.

One thing to point out is that in the luxury industry from Taiwan and Hongkong, who always believe in geomantic omen, they feel that the geomancy is not very good.

In such a situation, Arnott seems to show his decisive side and get rid of the "LV building". According to the insider, LVMH and Macao gambling king He Hongshen have 50% of the shares of the SHANG Jia center, and LVMH is looking for buyers to take the shares in their hands.

Such bad news may be heard more and more in the future.

"In the past, luxury brands opened too many stores, and in the end, every company opened up to become assets and liabilities. Now when it is time to adjust, there are many luxury brands that I have already known to be closed," a person working in luxury group said to me, "big families will focus their resources on good stores."

Accompanied by luxury brands

With the adjustment of strategy, surplus China's high-end commercial real estate will usher in a survival of the fittest, and for most of it, it will be a cold winter.