China'S Sales Decline Makes LV Cross Boundary Into Restaurants

It is understood that the LVMH group of LV parent company acquired the Crystal Jade of Chinese restaurant last year and is entering the Chinese catering market.

In fact, in the Chinese government's policy of cracking down on corruption in recent years, more and more luxury brands are experiencing the advent of a severe winter of sales. The global management consulting firm Bain said in a report released earlier this year that the scale of China's luxury market slipped by 1% in 2014 compared with that in 2013, which is the first negative growth in the market.

Secondly, the performance of LV is facing worse and worse. It is the change of interest of Chinese consumers who are too high profile and big LOGO, and the survey data in Britain show that they are from Beijing, Shanghai, Guangzhou and Shenzhen.

Only 18.8% of the consumers in China's first tier cities believe that LV is the brand they most want to have, because the rich class in China is no longer willing to be labeled as a high-profile flaunt, and hopes to turn to a brand that can display their personal style and uniqueness.

In the face of the ensuing shock, LVMH group has to admit that business in China is becoming increasingly difficult to operate, and at the same time, it is also trying to develop new product lines and weaken brand logo.

In order to save the brand crisis, one of the strategies of the brand is to try to pform cross-border operation and layout the Chinese catering market to attract more young consumer groups.

At present, after spending $100 million to buy jade group, the brand of LVMH has begun to add color to restaurants. It is understood that the jade group founded in 1991 has more than 100 branches in Asia, and in Shanghai, Beijing and Hangzhou.

There are 13 cities in the city. The main products are dim sum, Xiaolong Bao and handmade pasta.

While waiting for port meals, the future LVMH group will not rule out its expansion into the Middle East and European markets.

Zhou Ting, President of the China Institute of wealth and quality, believes that if sales are not good enough, if luxury brands do not want to improve their performance through price promotions and discounts, it will be the best way to boost the brand and the development trend of luxury industry through cross boundary business to create more and more complete product lines for customers. Because developing a new customer must spend more time and energy than retaining old customers, so most luxury brands will strive to extend the product line and provide products that can cover all aspects of life, so as to enable customers to continuously buy all kinds of products of the brand, and then develop them into loyal customers.

Interestingly,

The strategy of diversification has recently been very popular among luxury brands. For example, Prada has renamed the dessert old name in Milan as "Prada dessert" since last year, which has helped to increase the number of visitors to this store and become one of the landmarks of local pilgrims.

Besides, Burberry is in windbreaker and bag.

Besides the top quality products, the household appliances such as tea sets, pillows and bedsheets with various signs are introduced.

(Herm s) opens the two floors of the flagship store in Ginza, Tokyo, and uses its own brand of special leather sofa, bone china coffee coffee and plate.

A full set of Hermes furniture; Chanel (CHANEL) also chose to sell French food at Ginza in Tokyo, and Gucci opened a Chinese restaurant called "1921Gucci" in Shanghai, while Armani was in.

A luxurious house was built.

On the other hand, attracting new consumers through food and beverage, making them contact with high-end brands, and increasing brand diversification is what many luxury traders are thinking of at present. However, this may help the brand's performance in the short term, but it is actually a risky move.

Because luxury has always been exclusive, unique and other characteristics as the brand soul, if once everyone can easily have the goods in the hand, then the intangible will reduce the value of the brand, and then dilute the original main business profit space.

Moreover, in the era of "less is more", focusing on business will have more advantages than crossing too many fields that can not generate brand connections.