LVMH Snatch "Light Extravagant King" To Relocate And Seek Pformation

Once bought the "light luxury king" Michael Kors potential stock and later sold the missed opportunity LVMH, Marc Jacobs has been hoping to make up for its shortcomings.

A few days ago, Marc Jacobs decided to focus on learning "light luxury king", focusing on the product below $500.

?

In the context of slower growth, international luxury goods are also looking for change.

LVMH group's brand MarcJacobs has recently decided to focus on "light luxury king" MichaelKors (KORS.NYSE). Since 2016, it has mainly focused on less than $500, focusing on leather accessories.

A luxury industry analysis, MarcJacobs has missed the golden age of the rapid development of the top two or three luxury brands, and now some light luxury brands including MichaelKors have slowed down. At this point, MarcJacobs has a low risk of pformation and even can lower brand value.

"Light extravagance" is a fashionable consumer goods between traditional luxury goods and ordinary consumer goods, and its target consumers are the growing new generation middle class.

MarcJacobs is the same name brand created by American genius designer Mark Jakob (MarcJacobs), and is currently under the banner of LVMH, the world's largest luxury group.

After the acquisition of MichaelKors and the sale of this potential stock early, the regret LVMH boss BernardArnault has always hoped that MarcJacobs can make up for its shortcomings. In 2013, LVMH increased the shareholding of MarcJacobsInternationalLLC to 80%, and BernardArnault even said publicly that the value of MarcJacobs would occupy the 1/3 of the entire LVMH group in the next 5 to 10 years.

In recent years, LVMH has been preparing for MarcJacobs's listing plan, hoping to copy or even surpass MichaelKors, which is a great success in sales growth and market capitalization, which is worth nearly $15 billion and surpassed the market value of traditional luxury brands such as Burberry, Tiffany and Coach.

In the spring new product series of MarcJacobs2016, SebastianSuhl, CEO of MarcJacobs, said it will present new brand LOGO and new price system, of which 70% of products will be below 500 US dollars.

MarcJacobs actually uses this.

Prior to the sub line MarcByMarcJacobs (hereinafter referred to as "MBMJ") price positioning.

In 2001, MBMJ launched the market at a low price. It was once the main source of revenue for MarcJacobsInternationalLLC. In 2013, it reached $750 million, accounting for about 70% of the company's revenue.

But as more and more designers and independent brands crowded into this field, it began to dim.

Zhou Ting, President of the Institute of wealth research, said that the market environment is quite different from that of two or three years ago. With the more rational consumers, the rapid growth of many light luxury brands has slowed down.

As of December 26, 2015, the three quarter of fiscal year 2016, once the "light luxury king" MichaelKors revenue grew by only 6.29%, the lowest growth rate since the listing, and has achieved double-digit growth for three consecutive quarters, while the company's 2015 13 quarter fiscal year average revenue growth of 75% in the 13 quarter.

In the view of Zhou Ting, if LVMH group increases the market budget of MarcJacobs, it can also stimulate the short-term growth of performance. However, the MarcJacobs of the reshaping of price orientation pformation will finally form a large input output ratio, which is hard to say.

MichaelKors's success lies in its brand positioning besides its own design and marketing.

Its selling price is basically under 400 dollars, which is affordable by young fashion consumers.

"MichaelKors has been very successful, but I think its management approach is closer to a fashion brand -- rapid development is the core.

Fashion brands and luxury brands also have different strategies to attract consumers.

JeanNoelKapferer, a professor at HEC business school in Paris, had previously accepted the interview with the first financial daily.

"The luxury market will be polarized," a luxury industry analyst said. On the one hand, some top luxury goods continue to be "high profile", while others will go to the popular fashion brand.

In addition to MarcJacobs, LVMH group's tiger Heuer also tries to brand positioning.

A watch industry veteran said that on the one hand, there was a convergence between TIG Hoya and real time and Yu Po. The price positioning adjustment made LVMH group's watch brand level obvious. It could compete with Swatch's middle and low end brands. On the other hand, as LVMH group's largest watch brand, tiger was in a doldrums in the past two years, facing the market environment that the consumption of luxury goods continued to slow down.

For the slow growth of light luxury brands, Huang Shuxiong, a leading partner of DDT China East China consumer goods industry, told reporters that the big name

The price cuts have squeezed the living space of light luxury brands.