Luxury Brands In Our Country Will Be Rushing To The Shops.

It is understood that following this year Coach TAGHeuer, after turning off the flagship store in Hongkong, brand LouisVuitton of LVMH, the world's largest luxury group. LV The shop in Libai square, Guangzhou, has completed its lease at the beginning of this month, and will be handed over at the end of the month. Luxury industry insiders told reporters that due to changes in the luxury environment and business models, there will be more luxury brands in China in the next 1~2 years.

Libai square is one of the most famous shopping mall in the Southern China area. Louis Vuitton's former neighbors also have Herm s. Gucci After leaving Libai square, many international luxury brands such as Diorhomme, MaxMara, Fendi and so on, LV is only in Guangzhou's flagship store.

A luxury industry insider close to LVMH group told reporters, "in fact, as early as 1 years ago, LV had planned and prepared for the adjustment of physical stores. Its strategy is to turn off some stores which are not in good condition, and retain the best location of the store, which is about 3000~4000 square meters."

The reporter understands that LV currently has nearly 50 shops in China. Besides the 7 shops in Beijing and 4 shops in Shanghai, there are only 1 stores in Guangzhou and Shenzhen, and 4 shops in Hangzhou.

The reason for LV to turn off the store of Guangzhou Libai square is analyzed by Zhou Ting, President of the Institute of wealth and quality research. On the one hand, "the market environment changes and the infiltration of big data and Internet in the whole luxury industry have changed the mode of opening up luxury stores." Under the electricity supplier structure, luxury products will provide experience and services through more O2O ways. The store will be one of the ways to display and support online services as an image. Changes in the market operation mode will make the luxury brand adjustment line under the entity format structure.

On the other hand, "as far as the Chinese market is concerned, the phenomenon of consumption outflow is prominent. The offline stores of luxury brands are also facing greater performance pressure. The original business model will cause certain operating cost pressure on the brand, and in order to maintain profit margins, we have to cut off some of the shops which are not in good condition."

"When luxury brands have just entered China, there are only a single offline channel, and many luxury brands aim to increase the coverage of marketing and brand image by opening more physical stores. However, under the current situation, this strategy has completed its historic mission." Zhou Ting said, especially those in China, and opened hundreds of luxury stores in China, may face greater adjustment needs. "Closing stores and adjustments are certainly related to the performance of single stores, but more importantly, it is related to the overall strategic change of luxury brands to cope with changes in the Chinese market. LV is one of the most professional and strategic forward-looking brands in the luxury industry. It is expected that more luxury brands will be launched in China in 1~2.