LV Group Performance Remains Depressed In China Market

In the year, LV's revenue grew 6% to 30 billion 600 million euros ($34 billion 600 million), but French brandy's demand in the Chinese market was weak, and Chinese consumers' interest in its flagship brand LV remained low.

Over the past few years, some of the largest companies in the luxury industry have experienced "vigorous growth", but lately they have encountered headwinds because they are adapting to changing consumer tastes and the competition within the industry has become more intense.

Europe's economy continues to slide, while Asian economies, especially China, are also cooling, leading to a pressure on demand for luxury goods.

Meanwhile, the tense situation in Russia has also suppressed sales of luxury goods, and Russia has always been one of the strong growth markets in the luxury industry.

LV is often regarded as

The industry's "leader", the company has taken measures to rectify its LV brand, hoping to create a more unique image among consumers, thereby promoting its sales growth.

Bernard Arnott, chairman and chief executive of LV, said: "our main goal is to create the desire of consumers to buy" Bernard Arnault.

He added that profits from LV brand will grow in the future.

Although LV's profit increased by 64% last year, from 3 billion 440 million euros to 5 billion 650 million euros, the reason for the strong growth was mainly due to the group's decision to sell its 23% holdings of Hermes international to shareholders, and thus obtained capital gains.

Excluding this capital gain, LV's profits from regular business fell by 5% compared to the same period last year.

In its fashion and leather products sector, LV's sales increased 10% last year to 10 billion 800 million euros, but most of the growth was related to the integration of Italy brand.

The brand was acquired by LV at the end of 2013.

Excluding sales and exchange rate changes from the Loro Piana brand, the sector's sales grew by only 3%.

On the whole, the company's business is improving, and its fourth quarter sales increased by 10% over the same period last year, due to the accelerated growth in the US market and the improvement in European sales later in the year.

At the same time, French brandy's demand in the Chinese market dropped sharply, resulting in a 5% decline in its liquor sector's revenue.

Arnott said that LV will continue to implement the previously formulated plan to relocate its Marc Jacobs brand, with the goal of splitting it up through the IPO (initial public offering) paction, but he did not disclose the specific timing.