The Global Retail Environment Will Become More Difficult In The Next 10 Years.

European luxury brands may face tariff increases, resulting in weak performance in the US market.

Once the United States adopts a 45% import tariff policy to China, including China,

It is likely that the consumer confidence and luxury demand will both slide.

With the implementation of the US border tax adjustment act, prices will rise in the US, so analysts expect us consumers to increase their overseas shopping expenses. How to balance the sales performance of the US region and other parts of the world will become a new challenge for the major brands.

In the American fashion retail market, luxury luxury brands, which are between high-end luxury brands and popular brands, are known as the Savior of the weak market, such as Michael Kors, Tory Burch and Furla.

Luca Solca, an authoritative luxury industry analyst, pointed out that the retail market environment is more suitable for the development of light luxury brands with moderate price and high cost performance. However, LVMH group's pformation of DKNY into light luxury brand is not successful.

Another obstacle to the digital pformation of luxury brands is some stubborn and conservative industry executives. Some of them still reply to emails by typing their secretaries. "How can you make them accept the Internet as a priority development platform?" and for LVMH group, the decentralized structure mentioned above is partly responsible for the slow progress of its digitalization. Its brands have different attitudes towards digital pformation.

Up to now, the Internet penetration of LVMH group's brands is uneven, and brands still have great room for development in the digital field. But how the group will overcome various obstacles to enhance the overall digital process is still unknown.

Nathalie Remy, partner of McKinsey consultancy, says the problem is no longer the case.

Whether it should enter the digital field, but how to enter.

This is another difficult choice for Bernard Arnault.

Although L Catterton has a huge investment organization, Bernard Arnualt is still not at ease, worried about missing any investment opportunities, and do not want to have the brand to bring their own competition.

Just last week, LVMH formally set up a new investment company Luxury Ventures, led by Julie Bercovy, the vice president of group mergers and acquisitions, and will invest in new designers and brands.

And its private equity fund L Catterton is mainly responsible for mergers and acquisitions, investment lifestyle and light luxury brands.

Julie Bercovy graduated from HEC business school and joined LVMH group from investment bank LazardFr res in 2004. She was responsible for many major acquisitions, including LVMH's acquisition of the two major brands of Bulgari and Hublot. This shows that Bernard Arnualt attaches great importance to new investment companies.

At present, LVMH group authorized the initial funding of Julie Bercovy to be 50 million euros, which is planned to acquire new luxury Brand Company shares with high growth potential and new business mode.

According to sources, 2 million to 10 million euros will be used to acquire 15% to 20% of small companies in leather products, watches and jewelry, accessories, perfume and cosmetics.

Because these companies are too small to be enough to attract the attention of the LVMH group, the number of these companies is increasing and gradually becoming the strength of the industry.

In October last year, in order to continue to consolidate the leading position in the luxury luggage market, LVMH group again acquired a 80% stake in Germany's leather goods and suitcase manufacturer RIMOWA with a total value of 6.4 billion euros.

This is the first acquisition of German brand by LVMH group.

Of course, RIMOWA is.

LV's potential competitors.

Earlier, the LVMH group was eyeing the new acquisition target, with a 224 year old French luxury leather brand Goyard.

LVMH group hopes to expand its leather market share by acquiring Goyard, so as to avoid Goyard becoming the main competitor of its leather goods brands such as Louis Vuitton and Fendi.

Some people say that Bernard Arnualt is obsessive compulsive disorder if he sees a beautiful brand, but this is another worry.

Today, people who control luxury and fashion have changed dramatically. The millennial generation is gradually becoming the main force of new fashion consumption. If luxury brands ignore the existence of this crowd, it will be hard to arouse the attention of the crowd in the future, and then they will lose the market or even be marginalized.

Some analysts pointed out that the world's richest population is getting younger and younger, and the consumption power of this generation is expanding rapidly. The degree of brand digitalization has become an important factor in attracting them to buy.

Now, luxury brands are attracting new generation consumers through various ways, such as brand digitalization, product diversity and Creative Story marketing, but they are also becoming more anxious and impatient.

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