Never Be Able To Reach The Slumping &Nbsp; LV's "Metamorphosis" In China

LV, luxury brand in France

China's national football team, whose performance has always been poor, has been ridiculed by the media as "national football team LV" because of its luxury brand competition abroad.

Although the members of the national football team may have a fever on their faces, LV's popularity as a luxury brand can be seen in the eyes of the Chinese people.

As China entered in 1992.

Sinicization of LV

In the 90s of last century, the The Peninsula Hotel of the golden fish Hutong 8, Wangfujing, Dongcheng District, Beijing, pformed the 1 and 2 floors into boutique corridors based on the appearance of The Peninsula Hong Kong, which is Wangfujing boutique gallery.

In 1992, LV entered the Wangfujing boutique Gallery, and then needed to buy foreign exchange certificates.

At that time, Chinese law did not allow foreign brands to enter into joint venture chain stores, so most of them were authorized agents. After joining the WTO, they promised to fully open in 2005.

According to the report of Goldman Sachs bank, China's luxury consumption in 2010 was as high as 6 billion 500 million US dollars, the first global growth rate in 3 consecutive years.

In the next 3 years, China's total consumption of luxury goods is expected to surpass Japan and become the world's largest consumer of luxury goods.

If the $6 billion 500 million Chinese luxury consumption cake is broken down, a large part of it belongs to LV. It has 35 stores in 28 cities in China. LV's sales in China account for nearly 4 of global sales, exceeding the 19% place in Europe and 23% in the United States.

The manager of a Chinese cinema jokes that a movie city will laugh when it gets 20 million in a year, but that is only a month's sales of LV stores in Hangzhou.

Indeed, after the collective efforts of Chinese filmmakers, the Chinese film industry went to the 10 billion box office in 2010, but only LV, a luxury brand, has a sales volume of nearly 13 billion yuan a year in China.

As LV's CEO, Eve Cassel was surprised by the miracle of LV's sales in China. Although LV opened stores in Poland, Dominica and Lebanon in 2010, it was obviously not the key point. Only about 40% of China's market was the key.

Cassel attributed the success of LV in China to "1 billion 400 million people suddenly want to be better than themselves", but what puzzled Cassel is that LV's success in China can not be replicated in other emerging economies such as Asia and South America.

Compared to 35 stores in China, India, which is also part of the BRICs, has only 4 stores.

He concluded India's problems as bad infrastructure, stubborn local protectionism and slow decision-making process.

"India strictly prohibits foreign companies from having 100% stake in India."

The popularization of LV

Even though China now has 35 LV stores, buying LV is always one of the essentials of outbound shopping.

Outside the Harbour City LV store in Tsim Sha Tsui, Hongkong is full of mainland consumers coming to "Taobao". Some of the Shanxi and Inner Mongolia accent bosses are likely to be worth hundreds of thousands of bags.

The LV store in Champs Elysees street in Paris is unable to withstand a large number of Chinese and Japanese tourists, so it has to shorten the business hours, otherwise there will be a break in the store.

Xiao Bai (a pseudonym), who works in public relations in Shenzhen, has just graduated from university and has entered the public relations company. Because she has no need to worry about eating and drinking with her parents, so she took the first month's salary to go to Hongkong to buy herself a LV wallet.

"This is the first LV wallet in my life, and I will own my first LV handbag.

I don't need much, but at least I have one, of course, a few more better.

Many white-collar Chinese white-collar women, like Xiao Bai, regard LV as an essential part of life in mobile phones.

According to their income, they obviously do not belong to the "luxurious crowd" or even the "middle class" and "house slave group" who live under great pressure. But they deserve to become a huge consumer group of LV in China. Some people call this phenomenon "LV's popularity in China".

Perhaps it is because of the "populace" reason that the "money saving secret" that will buy LV in Hongkong or overseas will emerge as the times require.

Take LV stores in Paris as an example, the price of some LV products will be 40% lower than that of Beijing stores, 30% lower than that of Hongkong stores, and 12% of the consumption tax rebates can be enjoyed when leaving the country.

The overseas purchasing industry, which has been hit hard in the adjustment of the previous customs tax policy, is also one of the classic channels to "buy the LV in a budget".

Buying luxury goods in an extravagant way is almost a new situation for LV in China and Japan.

LV has also extended its own store layout in China to the two or three tier cities.

In August 2010, LV Hohhot store opened.

Cities such as Wuxi, Wenzhou and other non provincial capitals have also opened LV stores.

Moreover, LV has a typical "consumption structure characteristics" in China. Overseas, LV is basically sold to people over the age of 40, but in China, consumers age from 18 to 50 years old, and the majority of them are young consumers. It is not a case that white-collar workers like Xiao Bai who spend their money on buying LV are white-collar workers.

The slumping of LV

The most exaggerated version of LV in China's "Metamorphosis" is not "plebeian" but "poverty".

In the commercial city of Luohu, which is near Shenzhen's Hongkong port, Luohu is crowded with people who judge from the face or accent or from South Asia, asking the boss about the price of LV bags.

Like almost all Chinese city's luggage shops or wholesale markets, many of the LV here are goods, that is, imitation goods, because LV never allows them to sell their products outside franchised stores.

However, according to the simulation degree, there are differences between A and ultra A in the goods. A 500 piece LV super wallet is highly simulated. It is very difficult for the general consumers to distinguish between the wallet and the 5000 yuan purse in the store.

Li De, who was studying in Germany, Guangzhou (alias), with a full of conspicuous tone, said, "I bought a super A LV bag and carried it to Europe. No one has noticed that foreign friends are still genuine. There is nothing they can do. They have never seen anything false. They are not so vigilant against the truth and falsehood.

I was just trying to test it and the result was almost the same as I guess.

Of course, beyond the super A and goods, there will be so-called B and C goods, which means that people will know that they are fake when they see it, but the counterfeit LV products are still popular in many parts of China. Even in a stationery store next to a primary school in Guangzhou, the reporter also saw a LV money bag.

In addition, a large number of LV classic decorative patterns, large to small bags to gift wrapping paper, are also constantly circulating.

It may be possible to temporarily refer to these "low-end existence" of LV in China as "the slumping of LV".

In this case, LV is temporarily unable to earn money from those goods and super products. These fake products have always been a headache for LV and other luxury brands.

But from another point of view, these "ABCD" represent a kind of value worship. The subtext is: "when I have money, I must be true."

In 2008, LV sued a five star hotel in Shilong, Dongguan, in the form of "buy first, then sue", because the shop in the hotel openly sold the imitation LV.

What LV can do is to monitor the high-end channels of star hotels only, but not to LV in a wider market, but that does not mean that they are helpless.

In 2009, LV took the lead in setting up a wave of price cuts in luxury goods, and the prices of different goods were reduced by 2%~7%. Analysts believe that this means that LV is trying to compete with "Shanzhai" for consumers.

Even though Chinese white-collar workers are crazy about LV, but like the "national football team LV" mentioned in the beginning of this article, in the Internet or folk jokes, LV is still an object of ridicule in China, even among LV consumers. In the German cloud Club of Guo Degang, a grass-roots actor, there have been people who ridicule LV as "donkey card" according to the pronunciation rules of Pinyin.

Another example is that when searching for the belongings of Jiang Runli, the Deputy Secretary General of the Fushun municipal government of Liaoning, the police found that there were 253 luxury handbags such as LV in her house.

In order to earn the click rate, the website changed the title of the news to "253 LV" in the female corrupt official's family.

At the moment, the dissatisfaction brought about by the uneven development of China's economy and the uneven degree of benefit was released and vented on the curse of LV.

Why do Chinese people love LV? The story of neighbouring Japan may be explained.

LV, after entering Japan in the 70s of last century, almost created its miracle in China today. Japanese women love it so much.

According to the statistics of Japan's foreign trade organization, 92% of Tokyo's 20 year old girls have LV. The reason is that scholars find self-confidence.