LV Shop Shutdown Is Actually A Helpless Move.

Following the Coach and TAGHeuer shutdown of the flagship store in Hongkong this year, the world's largest luxury group LVMH's brand LouisVuitton, which is located at Libai Plaza, Guangzhou, has also concluded its lease at the beginning of this month, and will be handed over at the end of the month.

The store is also the first store in Guangzhou, China, LV, and this will not be the only closed shop plan for LV recently. It has been quoted by people familiar with the matter that LV will close 5~6 stores in China.

Insiders say that luxury goods meet three basic conditions: precious materials, exquisite workmanship and scarce quantity.

It seems that LV may have some "return" meaning in several stores in China.

However, if we want to return to success, LV must first figure out why the LV store's reduction actually started. If we don't know how to die, even if the three words are "screeching back", it won't help.

In early 2015, Bain launched the annual report on luxury goods in China.

The report pointed out that in 2014, China's luxury market fell for the first time in 8 years, down 1% from 2013.

Whether the figures in 2015 will be worse than that in 2014 is not yet known, but the negative factors remain the same: first, the high anti corruption stick is still rolling the market bubble, and the good days of public spending are gone.

Two, the rapid dissemination of information and low and smooth logistics, coupled with the opening up of the electricity supplier, made overseas consumption diverted from domestic consumption and online consumption.

How can LV be single?

However, another figure has great potential.

Research shows that the purchase level of luxury goods is spent 4% of the world's income, but the proportion in China has soared to 40%.

Why? Because the Chinese are good faces.

Lu Xun has long said that face is the spiritual program of the Chinese people.

In a consumer society, sometimes people buy things not for real needs, but for status and meaning given by commodities.

In addition to the external factors, the development of the luxury goods is very controversial.

What is more embarrassing is that although China has become the largest consumer of luxury goods, luxury goods in the domestic after-sales service is also a "luxury".

For example, shopping in a big shop can't be changed, but it can only be repaired.

After sale, I will tell you that there are some accessories missing, which need to be sent to Europe for repair. It will take one or two months to get it back.

One data can be corroborated by the fact that the average sales complaints of the same luxury brand in China are more than 65% per year on average.

What is this arrogance? For example, it is an honor to speak to a certain person, but what if you say "roll out" to you? It is a question of dignity.

Unfortunately, some luxury brands have made the same mistake.

It is easy to see that in the past

The market strategy is related to two words, one is "high", the price is high and the profit is high.

In March of this year, Chanel announced that the Chinese market had cut its price by 20%.

This is a good example of the 20% increase in market prices and the aim of balancing prices in the international market.

The two is "fast". Since the Chinese market "open a shop, hire a few people, hang a few clothes or bags" can sit and wait for the money, the branch is naturally more and more good.

In a sense, the closure of some luxury brand stores today is the result of yesterday's exhibition.

No matter "high" or "fast", it hurts.

Face.

To some extent, the former means cheating, the development of logistics and information flow, and the maturity of consumption concept, which makes consumers no longer willing to pay for such premium. The latter means depreciation, and the popularity of the market is always associated with the popularity of the brand, which is not necessarily a good thing for luxury goods.

Just imagine, when LV became almost a "street bag", how many former consumers would like to be their loyal powder?