LV'S Growth This Year Is The Worst In Eight Years, Closing 7 Stores In One Year.

Because of the serious decline in performance, since the end of last year,

Close shop shows are staged in China.

LV service hotline told reporters yesterday that for all customers, LV can now provide O2O.

Service, free of express charges.

LV closes 7 stores in China

On the official website of LV, the service phone of LV store of Taihua mall in Suzhou is still there, but it has been unable to get through.

LV official website service hotline staff told reporters that this store in Suzhou Canglang District People's Road store has been closed, if you want to buy LV products, you can go to nearby cities - Wuxi, Shanghai stores, or through the form of telephone shopping.

It is understood that two years ago, LV launched the O2O online shopping service mode. Consumers browse the selected products on their official website and remember the product number.

Next, LV customer service will be sent to pay SMS, consumers can pay online through UnionPay.

Unified shipment from Shanghai headquarters, from the order to deliver to Beijing consumers, takes about two days, free of express charges, and the prices of products on line are exactly the same.

LV customer service strongly recommended that consumers try the O2O online shopping mode because the number of stores is rapidly shrinking.

Since the end of last year, LV has staged a frenzy of closing stores in China.

According to media survey, LV has closed 7 brand stores in Guangzhou, Harbin, Urumqi, Shanghai, Taiyuan, Tianjin and Suzhou in one year.

According to LVMH's latest financial report, the group announced that it would slow down the expansion rate and close unreasonable stores in the mainland and Hongkong. Among them, China's LV stores closed nearly 20% before the middle of this year, while the number of LV stores in most other cities except Beijing, Shanghai and Hangzhou could be the largest.

It is understood that there are 4 LV stores in Beijing, which are located in Financial Street, Wangfujing, Beijing SKP and China World Trade Center mall.

LV's growth this year is the worst in eight years.

For the closure of shops in China, the explanation given by LV is that the lease expires and closes poorly managed shops.

However, industry analysts believe that the direct cause of LV's big closes in China is the continued decline in its performance.

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%.

For the reasons for the decline in performance, experts analysis, first of all, China's luxury goods market to enter the downlink.

In 2014, China's luxury goods market fell for the first time in eight years, down 1% from 2013 and sales fell to 115 billion yuan, according to the annual report on luxury goods released by Bain, a consultancy.

Secondly, overseas tourism and overseas online shopping diverted the market share of China. According to Amazon statistics, the number of overseas orders of Chinese consumers in the Amazon in the past 1-9 months increased by nearly 10 times over the same period last year.

Statistics show that nearly half of Chinese tourists choose to buy luxury goods while traveling abroad.

Huge gap between domestic and foreign LV stores to "exhibition hall"

On Louis Weedon's China official website, all kinds of leather goods, handbags, scarves, perfume, ready-made clothes and shoes are displayed. All kinds of fashionable styles are synchronized with Louis Weedon's home France Paris official website.

But careful observation reveals that the only difference is the price.

Take a new large handbag CITY STEAMER this year, for example, in China, the price is 28500 yuan per yuan, and the price in Paris is 3000 euros. According to the latest exchange rate of 1 euros to 7.5 yuan, the price of this handbag in Paris is RMB 22500 yuan, the difference is as high as 6000 yuan.

The same is LV classic large size handbag NEVERFULL GM, the retail price in France is 995 euros, equivalent to 7462.5 yuan, while the price in Chinese stores is RMB 10200 yuan, the middle price difference is 2700 yuan.

The same pale pink scarf, CHALE MONOGRAM, was sold in France for 400 euros, or 3000 yuan, but the value of it went up to 6700 yuan in Chinese stores.

The huge difference between LV retail prices at home and abroad makes Chinese consumers choose overseas purchasing or overseas purchasing, and the LV shops set up in the front line of big cities play a more important role in brand display.

Closing stores is a means of luxury spending.

Industry experts believe that LV's closing of the two or three line city shops so fast is the usual way to increase revenue and reduce expenditure for luxury goods, because with the rising cost of manpower and rent, too many stores will undoubtedly occupy too much operating cost.

Since last year, 95% of luxury brands have taken the initiative to choose strategic outlets. This is the premise for brands to seek new layout. Although luxury goods in China do not have too many moves in the e-commerce channel, this is the trend, which brand can not be evaded, and the future O2O format will become the mainstream.