The Advantages Of The LV Brand In China'S High-End Groups Have Gradually Weakened

Although the French luxury goods giant LVMH did not encounter the situation like Burberry, its flagship brand Louis Vuitton is facing a similar dilemma in China.

Luxury companies are all afraid of the so-called "Danniella Westbrook" effect.

The effect was named after a former soap opera actor.

The reason is: the actor is a hypocrite who takes cocaine. The image of her and her child from head to toe Burberry appeared in the tabloid newspaper, which led to the deterioration of the image and demand of the high-end brand in the UK.

According to data from China Confidential, a research service organization in the British media, Louis Vuitton is experiencing a downturn in China, and consumers in China's first tier cities are gradually avoiding choosing their products.

From a certain angle, the problem of Louis Vuitton and the Burberry mentioned above have the same principle, that is, the product is too popular.

When Chinese tourists travel overseas, the purchase of Louis Vuitton brand products also reflects the decline of their popularity.

The latest annual survey of China investment reference interviewed 1227 overseas Chinese tourists, of whom only 10.7% said they had bought LouisVuitton products in a recent overseas trip, compared with 15.5% in 2014.

This trend is especially evident among high-income tourists. Tourists earning more than 350 thousand yuan per year earn only 12.9% of their Louis Vuitton products in recent outbound travel, which is in sharp contrast to last year's 24.3%.

LVMH group has repositioned its brand based on consumer feedback. Measures include expanding logo Louis Vuitton products, developing sub brands C e line and Fendi.

At the same time

Control the expansion speed of stores in China.

But according to the group's first quarter briefing, LVMH has a long way to go.

Apart from Japan, China is still the main contributor to LVMH Asia's profits, but it fell 6% in the first quarter compared with the same period last year, much more than the 1% year-on-year decline in 2014.

China's anti-corruption action has no signs of slowing down, and consumers are more interested in niche brands.

Faced with these problems, LVMH group urgently needs to change the performance atrophy caused by popularization and restore its unique reputation.

According to the data, only 18.8% of consumers in China's first tier cities: Beijing, Shanghai, Guangzhou and Shenzhen think that Louis Vuitton is them.

In the three tier cities, the ratio is 38.8%. In addition, in China, although Louis Vuitton is still the most popular luxury brand, the momentum of Prada is surpassing LouisVuitton in the first tier cities.

The reason for this phenomenon is partly because the rich people in China and consumers in big cities are pursuing individualization and specialization.

They are unwilling to regard luxury as a symbol of wealth.

According to the survey, most consumers in the first tier cities are unwilling to buy too much.

Brand.

The respondents scored 1-5 points on their reasons for buying luxury goods, and the reason for "showing personal taste" was 3.92 higher.