Luxury Brand Three Quarterly Report "Cold" LV Withdrawal At The End Of Libai Square

Reporters yesterday at Libai square, the entrance to the mall LV store door closed, glass doors and windows also pulled up the curtain, do not see the shop.

The salesmen of other stores told reporters that they did not operate normally last weekend, nor did they have any sales promotion.

Although the first half of the year announced the success of the first anniversary of the group, although profit growth in the first half of 22%, but the company expressed concern about the performance of the second half.

Johann Rupert, chairman of the group, said.

The decline is mainly from the Asia Pacific region.

Burberry recently announced that sales growth in the first half of fiscal year ended 1% in September 30th, thanks to the sluggish sales environment in mainland China and Hongkong, China.

Mainland China and

Sales in the HKSAR fell by about 20% and 5% respectively, accounting for 1/3 of the total sales in the two regions.

However, the reporter confirmed the LV store's withdrawal from Libai square.

Related personages said that this month 8 starts to stop business, now is dismantling the shop, at the end of November the tenancy agreement will be officially handed over.

As to which brand succeeds, Libai square says it will not be released until the end of the month.

"Libai square will remain unchanged in the high-end location and will continue to introduce international luxury brands."

Relevant people added.

However, another LV store in Guangzhou is still operating normally.

It is understood that the LV shop of Libai square has been open for 12 years and has always been profitable.

For the withdrawal of LV,

It is a common decision made after consensus after considering the respective development of the two sides.

According to the latest data, sales of Louis Weedon's fashion and leather goods business in the three quarter of this year were barely equal to the previous value, up only 3% from a year ago.

Executives at the investor conference call pointed out that the decrease in consumer spending in the mainland made the group's sales growth slower than the first half of the third quarter.

Louis Weedon, the chief financial officer of LVMH group, also said in a conference call: "if there are two shops in the second tier cities in China, we may close one of them."

At the same time, taking into account the price issue, the company will shift its focus from mainland China to other regions such as Japan and Europe.

It is foreseeable that LV will set off a wave of shop closes in the mainland of China.

Insiders believe that Guangzhou's luxury consumption capacity is not even better than that of some second tier cities, and the LV shop is not surprising.

In fact, since last year, luxury brands have been on a large scale in the mainland.

The 2014 China luxury market report released by Bain showed that the mainland China's luxury market for the first time showed negative growth in 2014, down 1% from 2013.

2014 was also the year when luxury stores closed the most.

Huang Wenjie, executive director of Guangdong Circulation Industry Association, said that after 2013, influenced by factors such as anti-corruption policies, overseas purchasing and consumption slump, luxury goods encountered "cold winter" in the mainland market, and so far no improvement has been made.

Huang Wenjie believes that before 2013, luxury goods are rapidly expanding in the mainland, and the tide is the sequelae of blind store, and it is also a measure that can not be taken under the current sales situation.

Huang Wenjie pointed out that China's high-end consumption still exists, and luxury brands should follow the trend. To realize that Chinese consumers are more inclined to buy luxury goods overseas, China should pay more attention to enhancing brand and consumer attachment and affinity.

Some luxury brands are trying new sales channels in China, such as Gucci opened a restaurant in Shanghai recently, and LV opened a new store in West Lake scenic spot in Hangzhou. "Cross-border operation breaks through pure product sales to attract more consumers."

Huang Wenjie thinks.