Monday, November 16, 2015

LV closed 3 stores in China the luxury end of the era of fast money in China

LV closed 3 stores in China: the luxury end of the era of fast money in China

The financial times said LVMH are expected to close more stores in China in the coming months. Xu Haifeng surge information Bull morning news δΈ¨ Zhou xiaochuan and SFC, and September 7, you

Another luxury brand close now, this is the famous LV (Louis Vuitton).

According to the United Kingdom, the Financial Times reported that LVMH (Louis Vuitton) closed at the three restaurants of Guangzhou, Harbin and Urumqi in China, giving the luxury goods group, only about 50 stores in mainland China.

The financial times said LVMH are expected to close more stores in China in the coming months. Until recently, located in the "Rust Belt" of Harbin and Shenyang, have two or three of the Louis Vuitton store, according to people familiar with the matter said, this France brand is planning to shut down the shops in these cities.

In the past few years, luxury branded stores in China used to the increase in the number of curves, each closing is in the news. Allegedly, last year, Hugo Boss closed, 7, Burberry closes 4; this year, the Prada stores in China greatly reduced volume of 2014 30%, 33; Armani outlets number from 49 to 44 per cent; CHANEL store at 11, is the largest branch of the half.

While the public sees is closing, but for luxury brands, for its part, they prefer to refer to this initiative as part of the store policy is changed by adjusting the overall consumption environment.

That is also the case, most comfortable luxury in China, high-growth, high-profit era has ended. Harder than ever to do business, fighting corruption and building a large number of luxury was sold as a gift without a way out, a large number of Chinese people going abroad to buy luxury goods, now slide in economic growth also makes the prospects for luxury goods consumption theoretically less optimistic.

Last month, the LV's parent company, LVMH has said on a conference call with investors closing information out, "If you had two LV stores in second-tier cities, or considering closing some stores. "The third quarter of this year, as Chinese consumers have been stock market crash, and the impact of devaluation of the Yuan against the dollar to 3%, the Group's performance in the Asian market also took a hit, especially the flagship brand LV.

Now stores of luxury brands including LV strategy is "to close some stores with poor operating conditions, remains the best location of the shop", large shop area reached 3000~4000 square meters. Before this round of closing, LV this year opened new stores in Beijing and Hangzhou, respectively.

LV16 Japanese response to the closures, saying, "will continue to invest in the store network in China, to boost our hopes to provide customers with the level of experience. "

Do not assume that "enhance the experience" is formulaic. No worries about the sale of the day, opened more stores means being able to make more money is bad, need to think hard about how to attract more people into the stores. To focus resources more stylish shops, display more categories, enhance the function of the store, passing culture can not only enhance the brand image and really improve the consumer experience.

Again, performance crisis after the United States brands high profile Coach announced that the fiscal year 2015-2017, plans to spend about $ 570 million for rearranging stores.

Reasons for luxury to close some stores, including China's business environment is fast changing. Most brands are ten years ago to enter the Chinese market, ten years downtown in the fall and rise of the new business district in, adjustment is required, close has become inevitable, "was cast as opened the shop, turn the great thing now", a luxury goods surging journalists say people in the industry.

Fortune character Dean Ling Tai says, if closed two years ago, luxury stores is a passive withdrawal, now represented by the LV luxury brands to closing, except out of profits outside the point of consideration, is also a proactive strategy. In her view, business structure, O2O luxury goods will be more ways to provide the experience and services, stores will be used as image display and one way to support online services. Changing patterns of market operation, will make the luxury brand entity business structure under the adjusted line.