LVMH Began To Do Chinese Food Luxury Group Are Crossing The Border.

Although LV is still the most popular luxury brand in China, the number of respondents who want to buy Prada (Prada) is more than LV in the first tier cities.

Faced with this kind of impact, this luxury magnate can only try to pition to cross-border, trying to attract more young consumers in many ways, even catering.

LVMH, the world's largest luxury goods group, has to admit that business is bad because of the recession.

LV, the largest luxury brand in the group, is facing a slightly embarrassing dilemma in the Chinese market, which is becoming more and more common among the first tier urban residents. Louis Weedon (

In this regard, Zhou Ting, President of the Institute of wealth and quality analysis, said that in the context of the slowdown in the luxury market in China, LVMH group is accelerating the opening of the product diversification strategy, overweight restaurant formats or will add new consumer groups to the group.

In February 2015, the LVMH group of LV's parent company announced that its core profit in the 2014 fiscal year fell for the first time in five years, a drop of 5%.

After excluding the impact of the exchange rate, the Asia Pacific region is the only negative revenue growth market for LVMH group, with a year-round drop of 1% and a 6% fall in the fourth quarter.

In the fashion world, every luxury company does not want to see the "Danniella Westbrook effect" again.

The case is based on a group of photos taken by British actress Danniella Westbrook and her daughter.

The two daughters of the mother and daughter wrapped the Burberry's camel elements from their feet to their feet, and the exaggerated shape made it difficult for the public to accept.

The real fashion critics did not pass the opportunity, and a lot of remark made bobailey's sales in the UK greatly affected.

Now, Louis Weedon is experiencing the same problem in China.

According to the data, more and more consumers in the first tier cities are avoiding buying brand products.

The reason for this is that Louis Weedon's overly high profile LOGO is full of its products, which is very similar to Burberry.

The change of data is influenced by the change of ideological trend of the target group.

At present, China's rich class and fashion lovers love to pursue personal labels and unique characteristics.

They are no longer willing to share the same brand or "bump shirt" with others, especially with the nouveau riche.

The decline in popularity of LV is not only confined to the Chinese market, but also to Chinese consumers' overseas shopping choices.

According to the latest annual survey, only 10.7% of the 1277 overseas tourists purchased LV products during the latest trip, which was 15.5% lower than that in 2014.

In high-income tourism groups, the attractiveness of LV is more obvious.

Only 12.9% of the high-income earners (family income of more than 350 thousand yuan) bought LV on a recent trip, which reached 24.3% last year.

In June 2015, LVMH announced that its French high-end department store Franck et Fils will be closed.

The department store, located in the sixteenth District of the French luxury District, will be replaced by the La Grande Epicerie branch, the top food store Le Bon March, which is controlled by LVMH group.

Franck et Fils, founded in 1897, is mainly sold.

And designer brands, stores are expected to officially cease operation in July 2016.

In 1994, LVMH took over Franck et Fils, but with the overall downturn of the luxury goods industry, the reputation of Franck et Fils was far inferior to that of old Buddha's department store and Paris Spring Department Store under high competition.

Even without such a dilemma, the luxury brand led by LV is facing a "headwind" policy in the mainland market.

Bain, a global management consultancy, released a report in early 2015 that the market size of the luxury market in mainland China dropped by 1% in 2013 compared with that in 2013, and for the first time there was a negative growth in the market for the first time in 2014.

The government's anti-corruption campaign has continued to affect the "luxury gift wave", and the slowdown in economic growth has exacerbated this phenomenon.

But such measures are far from enough. In order to capture the hearts of more young consumers, the luxury giant began to try to play down the "LV" logo and turn it into a market with more diversified brands.

For example, a Chinese restaurant.

In 2014, LVMH group first entered the catering industry in China.

Through its private equity fund L Capital Asia, the group bought over 90% of the Chinese restaurant's Crystal Jade for $100 million.

It is understood that the Jade Restaurant Group was founded in 1991, the main Cantonese cuisine, including a variety of dim sum, hand pastry and baking products.

The company is headquartered in Singapore and has more than 100 branches in Asia.

In 2002, it began to enter the mainland market. Currently, there are 13 opened stores in Shanghai, Beijing, Hangzhou, Qingdao, Guangzhou, Shenzhen, Foshan, Wuxi and other cities, covering the brand of emerald restaurant, Jade Restaurant, emerald chef, emerald noodle and Xiaolong Bao.

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The group revealed that after the acquisition, LVMH group plans to expand the jadeite restaurant to the Middle East and the European market and finally go public.

Opening up diversification strategy to reverse the plight of luxury goods in China is considered to be a major driving force for LVMH group to buy Chinese food.

The industry believes that the main characteristics and quality of high-end catering brands still have the market.

"LVMH group simply can be seen as two big pieces, one is food and liquor, the other is boutique retail department and other luxury goods department", Zhou Ting, President of the Institute of wealth quality research, said.

Even so, in terms of analysis, LVMH group's

It's a step slower than the same brand.

In the view of Lai Yang, Secretary General of Beijing commercial economics society, most of the brands whose performance is affected are based on luxurious decoration environment, expensive and rare food ingredients, and there is still a vast market for high-end restaurants with real quality and cost-effective.

The prospect of Chinese food in the global market is considered another reason for LVMH group to buy jade restaurant.

According to Lai Yang, Chinese food is very popular internationally, especially in Southeast Asia, Europe and America, Japan and other places. Chinese restaurants are very appreciated by locals.

Like the restaurant in Beijing, the Japanese restaurant was listed in the local Michelin 3-star restaurant.

The vice president of the Chinese Cuisine Association and the press spokesman frontier believe that LVMH's investment in Chinese food is an inspiring signal for China's catering industry.

He pointed out that in the past, there was a large number of bubbles in the high-end catering market in China.

After the introduction of the "eight countries", great changes have taken place in China's catering market and began to really concern normal consumption.

International investment has chosen to enter this time, indicating that they are optimistic about and trust the current Chinese catering market.

Christina Teo, executive director of L Capital Asia, Louis Weedon private equity fund, said that the operation of jadeite restaurant in China still maintained an annual revenue growth of 20%.