LV Is Outdated In China?

Last month, LVMH issued 2014 annual earnings, which showed that the company's core profit has fallen for the first time in 5 years, and the poor performance of the Chinese market is the main reason.

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An important reason for the decline in sales is the strengthening of anti-corruption and the influence of Hongkong's "occupy the middle" movement. But apart from these objective reasons, we seem to be less and less LV from LV's own brand performance.

Recently, Business Insider published the article, saying that

As the middle class began to flood, people began to lose interest in LV.

The "people" here are of course middle class and high-end buyers.

In fact, people are not like that. They have more people and things are not so popular.

HSBC general manager Ewan Rambourg's The Bling Dynasty: Why the Reign of Chinese Luxury Luxury mentioned in the book Rambourg, which began to become popular among the middle class in China.

"Most Japanese buy luxury goods for use, while Chinese people buy luxury goods mostly as a sign," Ewan Rambourg said.

He is right. In the past few years, LV has always been a symbol of status, money and status.

However, with the development of the middle class and the change of the taste of "local tyrants", people's attitude towards LV is changing quietly.

"LV is too common," said one.

The buyer said, "everyone seems to have LV. In Beijing, almost every restaurant has the big Logo figure.

I would rather buy Chanel or Bottega Veneta than they do, they are less common. "

"Almost every restaurant" sounds exaggerated, but in fact, compared with the above mentioned 100 million yuan worth of women, perhaps it is the true portrayal of her restaurant.

In any case, it can at least represent a part of the buyer's mindset.

At the same time, because of the reputation of LV, it has also become the favorite brand of counterfeit merchants. In the underground commercial cities of various cities in the country, there are almost sold places, so you can see a large number of classic Logo of LV.

But what we have to admit is that they do not buy LV because they no longer need to show their identity. They still need it, but they are different from what they used to be. They now prefer to show themselves in a low-key way - such people exist, but now more and more.

If LV does not adjust the strategy again, even if anti-corruption is cooled and "occupy" ends, China's large market seems to be in danger.