LV Launches Online Shopping Service In China

The new era begins without mercy, the largest in the world.

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Its core luxury brand LV is officially launched in China today.

Service.

According to the exclusive news of WeChat public's daily fashion news, LV's online shopping service launched on its official website of China includes all the products of the season, including handbags, shoes, clothing, jewelry and perfume, including the joint LV x KOONS of brand and pop art Jeff Koons.

However, at present, only online shopping services in 12 cities such as Beijing, Shanghai and Guangzhou are available. Not all goods can be mailed, some stores need to be picked up, and there is no difference between the price and the physical store shops. The payment method supports Alipay but does not support WeChat payment.

Some analysts pointed out that with the gradual pfer of consumer habits to the online market, luxury brands will pay more attention to and accelerate the layout of the electricity supplier market, but are still more cautious. They have not chosen Tmall and Jingdong, such as Ali's electricity supplier platform, but from the official website to test the market.

It is hard to say whether LV will break the competition pattern of luxury goods suppliers in China. But one thing is certain that if luxury brands ignore digitalization and violate consumer demand, they will face the risk of being eliminated by the industry. This is not to be taken lightly for LVMH with a market value of more than 100 billion Euro dollars.

LV is the largest luxury brand in the world, with an annual revenue of 7 billion euros, accounting for 75% of LVMH's total sales.

The picture shows one of flagship stores in LV.

It is reported that the website will become the only official e-commerce platform of LV in China.

What is worth noting is that Gucci also launched online shopping service on the official website of China in July 3rd.

According to exclusive information from LADYMAX, Prada will also open online shopping in China's official website in the third quarter of this year.

According to the latest survey by Boston consulting agency, the proportion of e-commerce business in the global luxury market is still small. It is still a small part of the global luxury market, accounting for only 7% of the total sales of the industry, but it is expected to reach 12% by 2020. There is still much room for development.

Sanford C.Bernstein, a securities brokerage firm, expects that luxury electric business will grow at a rate of two times the overall luxury industry, and online luxury pactions will reach 27 billion euros by 2019.

Data show that LV parent company LVMH group last year accounted for only 5% of the total net sales of about 2 billion euros, apparently can not meet the ambitions of LVMH boss Bernard Arnault.

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.

For current consumers, shopping behavior happens almost everywhere.

Millennial consumers see a new handbag on the back of fashion bloggers on social media, which triggers a shopping impulse, and instantly they want to get this handbag. "Fast" and "interactive" are becoming the most desirable shopping experience of the Millennials.

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.

According to the world clothing and shoe net, luxury brands including Chanel and Hermes have been testing water online since 2016.

Without any sign, in August 1st last year, the French luxury brand Christian Dior announced on its official WeChat public platform, "Lady Dior Small handbag Tanabata limited, online boutiques are on sale." this means that Dior has become the first luxury brand to buy handbags on the domestic line.

"The online fashion and luxury market is becoming more and more important, especially when luxury companies realize that increasing physical stores is no longer the only choice."

Luca Solca, an analyst at the Bank of Paris, France, said earlier.

In April 2014, luxury brand Burberry officially entered Tmall, and over 3 years passed. Luxury brands still have a wait-and-see attitude toward the choice of e-commerce platform in China.

In fact, LV is also seeking new ways to become young.

In September last year's fashion show, LV Ghesqui Nicolas re, a brand creative director, made further attempts for younger and technology convergence. The first launch of the mobile shell challenge "It Bag" market is gaining more and more attention from the millennial generation.

LV's latest cooperation with Supreme caters to the tastes of the millennials and is also activating the young people's market.

Some analysts say that LV is also beginning to understand why a street brand can sell new products every week, and it is a discount when it comes to queuing.

However, marketing for millennial consumers may not necessarily be rewarded.

Earlier, the Swiss Union Bank's survey of 2109 millennial consumers from China and the United States showed that the millennial generation was also concerned about the luxury of products, but the competition of luxury brands for young people is competition between products and services.

Bernard Arnault issued a warning to its group's brand. Only the brand is responsible for the quality and service of its products, so as to ensure long-term and steady growth of its performance.

What it means is that in a short span of 2 years, the strong recovery of Gucci has also put pressure on Bernard Arnault. It is too difficult for us to find out the preferences of the Millennials. Especially the young consumer groups are much more happy and old. They have greatly reduced their brand loyalty. They are reluctant to listen to luxury brands and are turning to their personal interests and cool ways of buying. This may be a source of anxiety for luxury brands in terms of consumption trends.

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Chris Morton, CEO of multi brand online luxury goods retailer with a small share of Arnualt family investment company, said: "nowadays more and more consumers are searching and purchasing products through the Internet. If the luxury brand still chooses to ignore digitization, it will be contrary to the needs of consumers, and will face the risk of being eliminated by the industry." Lyst.com

In fact, the Internet has existed for more than 20 years, but luxury brands have only realized the necessity of this field in recent years. It took them a long time to give up online sales and never exceed the stubborn assumption of bustling street stores in European tourist cities.

Another industry consultant told Reuters that another obstacle to the digital pformation of luxury brands is some stubborn and conservative industry executives. Some of them still use their secretaries to type e-mails to reply e-mails. "How can you keep them as a priority development platform for such conservative people?"

For the LVMH group, the decentralized structure mentioned above is also partly responsible for the slow progress of its digitalization. Its brands have different attitudes towards digital pformation.

In order to better pform the electricity supplier to digitalization, LVMH set up an investment company to study the impact of digitalization on luxury products. In September 2015, Apple Music former senior director Ian Rogers was hired as the chief digital officer of the group's new position.

24Sevres.com, the group's e-commerce website, has been launched last month. In recent years, LVMH has been investing the most in e-commerce.

After launching the multi brand 24Sevres.com, LVMH's most exclusive Internet C luxury line also said it would launch an online shopping platform by the end of the year.

For example, a group insider disclosed that whether or not to disclose product inventory on the Internet has become one of the hot topics of management in the near future.

Some managers believe that once the brand is identified on the official website, each item will be stored in stores, which may lead to a decrease in the number of stores.

Because consumers will have to go to the store to know if they want to have the goods, and once they know that they are out of stock, they will not ask the store, which will reduce their chances of buying other products.

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, said that the problem is no longer whether luxury brands should enter the digital field, but how to enter.

This is another difficult choice for Bernard Arnault.

Especially in the Chinese market, LV has closed some stores in the two or three tier cities since 2016. According to the fashion headline data, LV has closed nearly 18% of its stores in China, mainly concentrated in two or three cities, and has closed down 8 shops in Guangzhou, Harbin, Urumqi, Shanghai, Taiyuan, Tianjin, Suzhou and Nanning. But it has been proved that with the improvement of the living standard of Chinese consumers, the luxury consumption potential of the high-end consumers in two or three cities is being stimulated. At this time, the opening of electricity providers will make up for this market demand gap.

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