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    The Luxury Market Is Crying Out For Help. The LV E-Commerce Platform Will Soon Be On Sale.

    2016/10/27 14:38:00 41

    Luxury GoodsLVE-Business

    As we all know, with the increase of the cost of manpower and rent, too many stores will undoubtedly occupy too many operating costs.

    With the advent of Customs store, international luxury brands will undoubtedly choose a more suitable sales strategy.

    Now the LV store is rearranging the shops in China, and it can also be considered that the brand is rearranging the Chinese market.

    Although luxury goods in China do not have too many moves in the e-commerce channel, this is the trend, and which brand can not be avoided.

    LV e-commerce platform will soon be listed, but the time and mode of specific listing will not be released for the time being.

    The reporter interviewed LVMH group's Shanghai headquarters on the strategy of closing stores and electronic business platform, but LV brand PR department did not give any reply before the press release.

    Industry experts believe that LV is also paying for the rapid expansion of its brand in China. This is the usual way to increase revenue and reduce expenditure for luxury goods. It may improve the financial statements in the short term.

    But such a rapid closure of the two or three line city shops will cause long-term damage to the brand and the consumption of the local market.

    Bain issued the "

    China

    The luxury annual report said that in 2014, China's luxury market fell for the first time in eight years, down 1% from 2013 and sales fell to 115 billion yuan.

    Since 2013, China's luxury market has gradually entered the downlink period.

    As the first batch of brands entering the Chinese market, LV also entered the weak period of China's regional performance along with the environment of China's luxury market.

    Data show that as of the end of June 2015, the first half of the fiscal year, the Asia Pacific region is overcast.

    In the first half of this year, LVMH group suffered an organic decline of 5% in the market (except Japan), with a decrease of 6% and 5% respectively in the first quarter and the two quarter.

    The profit margins of the fashion and leather goods sector plummeted 160 basis points to 28% in the first half of 2015.

    From 31% in the same period last year and 30% in 2014, it fell further to 29%.

    In the first half of the year, there were 16 new stores in fashion and leather goods sectors, far less than 56 in the second half of last year.

    Last year's performance was a mess.

    achievement

    It is even worse.

    LVMH group's latest performance report shows that in the three quarter, the group's overall sales revenue was 9 billion 138 million euros.

    Although the LV fashion based leather goods department earned 3 billion 106 million euros in revenue, the actual revenue growth of the sector in the first three quarters fell to 1% from 16% in the same period last year, showing the worst in eight years, resulting in an increase in LVMH group's real income from 18% in the same period last year to 4%.

    Zhou Ting said that this is the pain that luxury goods must experience in China. Only when we get through this stage and rearrange the online and offline can we meet the needs of domestic consumers.

    At the same time, Zhou Ting also predicted that after ending the layout of shops in China, LV will adjust commodity prices.

    Price adjustment is aimed at the global market, and its purpose is to complete the global price integration. Only after price integration can the layout of e-commerce channel be carried out.

    In addition to declining performance, consumption outflow is also one of the reasons why luxury brands choose to shop in China.

    Nelson's China outbound travel monitoring report shows that nearly half of Chinese tourists will choose to buy when traveling abroad.

    Luxury goods

    It is worth mentioning that, although domestic consumers are keen on overseas shopping, LV seems to be no longer on the list of consumers.

    According to a recent annual survey, only 10.7% of the 1277 overseas travellers surveyed bought LV in the latest trip, down 15.5% compared with 2014.

    Meanwhile, in the high-income tourism group, the brand attractiveness of LV declined significantly.

    Only 12.9% of high - income people (more than 350 thousand yuan per year) bought LV in the last trip, and the index reached 24.3% last year.

    According to Amazon statistics, the amount of overseas orders made by Chinese consumers in Amazon in the past 1-9 months increased by nearly 10 times over the same period last year.

    Over the past two years, the phenomenon of consumption outflow has been prominent.

    It can not be denied that nowadays, the poor sales of luxury brands in China have caused a lot of pressure on the stores that have opened up in the past, and even many shops have been reduced to showrooms.

    In the Research Report of the luxury goods distribution channel, the Research Institute of wealth quality pointed out that from last year, 95% of luxury brands will choose strategic shops. This behavior is initiative, which is the premise of brand seeking new layout, and the future O2O format will become the mainstream.


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