Fake Luxury LV Was Abandoned By High-End Consumers

LV replaced Jordi Constans, who sells milk, to replace Yves Carcelle, which sells bedding products. The trend of rapid digestion is obvious. China's growth relies on new wealth. After 14 months of handover, Jordi Constans has officially become chief executive of Louis Vuitton Louis Vuitton. His former club is Danone fresh dairy product department of France.

LVMH group handled the major personnel adjustment very low-key, did not officially announce, Jordi Constans rarely appeared in public occasions, which is often active with new Yves Carcelle, and even with all the stars in fashion show fashion posture, slightly understated.

Selling milk can also sell LV? For a while, this almost ridicule question pushed Jordi Constans and LV to an awkward position.

However, this may be an important step in the development strategy of LVMH group president Bernard Arnott. It is speculated that he favors Jordi Constans without any luxury management experience, which is mainly focused on his rich world. Brand management Experience. In fact,

After Arnott lost Gucci in 1999, the competition between him and PPR never ceased. After that, Robert picked up Robert Polet from Unilever's frozen food department as CEO. Under his leadership, Gucci was developing fiercely and surpassing the trend of LV in.

Perhaps Jordi Constans is the effective way to block competitors. Besides, Arnott himself started up in the construction industry, which seemed to have no influence on his luxuries empire.

　　 Domestic trouble and foreign invasion

In order to stir up the LV beam, Jordi Constans is faced with more than just inexperienced problems.

According to foreign media reports, Jordi Constans, 49, graduated from Centre College and majored in business and economics at Centre College. He served as executive vice president and executive committee member of the new dairy products department. He joined Danone in 1990, and served as managing director of Spain in 2002 and transferred to France's managing director in 2004. The outside world is full of doubts about whether such an elite who is good at selling milk with luxury goods can control LV.

The outside world seems to be more worried about the resignation of Yves Carcelle, which has served LV for more than 20 years. Since Yves Carcelle became chief executive of LV in 1990, under his leadership, LV has been developing rapidly in the past 20 years with annual sales of 7 billion euros (US $9 billion 100 million). There is no doubt that in the process of LV's global expansion (especially in China), he has to do something. Despite resigning from CEO, Yves Carcelle remains a vice chairman of the fund and a member of the LVMH Executive Committee, and plans the development strategy of the group together with Arnott, chief executive of LVMH.

Some analysts believe that Jordi Constans may be faced with internal and external troubles: from within, whether it can achieve seamless connection with the original "team", especially recently LV chief. Designer Marc Jacobs is about to go to Dior. Little horse and YveCarcelle can be called iron rod comrades. The two men worked together for many years, making LV's sales performance steadily higher. It is difficult to reproduce this tacit cooperation. It is hard to estimate that Marc Jacobs, known for its unruly "bad boy", is hard to create sparks with a person who does not understand fashion.

Externally, although Louis Vuitton has been developing rapidly in recent years and its business has grown at a rate of two digits per year, the growth rate of LV has slowed down in 2012, thanks to the European debt crisis and the slowdown in China's economic growth. What is more worrying is that because of the popularity of LV brand, many high-end consumers who are seeking to "make things scarce" are abandoned.

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　 LV rapid digestion

However, this may be a good thing for Jordi Constans. He may be better at running LV with fast food products. Moreover, in recent years, the expansion of LV also reveals the characteristics of the industry.

In 2010, LV declared that it would break through the layout strategy of China's second tier cities and plan to enter the three tier cities in order to gain higher market share. LV watches and jewellery, President of North Asia, said the expansion will extend to three or four tier cities. At present, LV's two or three tier cities in China include Changchun, Changsha, Dalian, Harbin, Kunming, Suzhou, Wuxi, Wenzhou and so on.

Although the economy is not prosperous enough, in order to seize more market share, LV is not aggressive and aggressive.

Compared with the industry, it is easy to see the similarities between them. The three notable characteristics of fast moving industry are convenience, visual products and brand loyalty. It is necessary to control the terminal channel and sink the channel down to the next level. This is the inevitable requirement for the convenience of the industry, and the main factor that affects the success is the high rate of distribution and effective channel control.

Whether it's competing with old rival Gucci's Robert Polet, or promoting LV to continue to increase revenue at a fast pace, Jordi Constans seems to be a good candidate. Just for LV, the altar of luxury has long gone.

　　 Buy LV to reduce people's status

"LV must be popular. Luxury brand Its strategy is to expand rapidly, including Gucci, which is losing brand appeal gradually. Zhou Ting, President of the Institute of wealth and quality, strongly told the financial weekly newspaper reporter. In her eyes, "luxury" is a relative concept, but the "top niche brand" can be called luxury.

In the Chinese luxury report released in 2012, through the survey of 3754 high asset groups (10 million or more) in the Chinese market, the survey shows that the luxury brands with high repeat buying rate are Chanel, Herm s, Cartier, BV and Dior. In the ten luxury brands that best reflect consumer tastes, there is no LV. In the luxury brand counterfeit visibility list, LV topped the list, but more than 90% of consumers said they would not buy many luxury brands.

However, LV ranked second in BMW's ten luxury brands, which are the most expensive luxury brands. It can be seen that although the sales volume of LV is growing, most of it comes from new customers.

Indeed, there is a big gap between LV's consumption groups in China and abroad. According to Zhou Ting, in China, over the past decade or so, it has mainly promoted the low-end products, so the consumer level of China's consumption of LV is not high; in foreign countries, the basic products of LV are many ordinary people and even nanny to spend. But foreign LV is much more admired for its customization and the most high-end product line, so its core customer quality is much better abroad.

"Moreover, LV's fake products are too many, seriously affecting its brand image, leading to the disappearance of LV by the wealthy class in China. It has disagreed with LV, and even thought that buying LV products is to reduce its identity. So the brand position of LV in China is very dangerous. "Zhou Ting bluntly pointed out.

But this year, LV seems to be aware of this problem - the constant loss of core customers and high-end customers, so this year it opened a custom Louis Vuitton house in Shanghai. Perhaps, with Valentino's warning, Arnott did not want to repeat the same mistakes.