LV Growth Rate Slowed Considerably Compared With The Two Quarter.

The slow growth of core category performance will make LVMH's future development worrying.

LVMH released the three quarter and the first 9 months of the earnings report, including three quarter revenue growth of 7% over the same period, the largest proportion of the LVMH fashion and leather goods sector increased by 3%, the growth rate slowed considerably compared with the two quarter.

In the three quarter, LVMH group revenue grew 7% to 8 billion 580 million euros, according to the financial report.

In the various businesses operated by LVMH, other businesses have shown a moderate level in addition to the substantial increase in liquor business.

And the slowdown of core business growth makes the company's future development prospect worrying.

Earnings data show that the two largest sectors of the group's total revenue, the fashion and leather goods sector, and the competitive retail sector are growing slowly.

Among them, sales of fashion and leather goods sector grew by only 3%, which was much slower than the 10% growth rate in the two quarter.

The sales volume of the retail sector increased by only 5%.

Luxury experts and Dean of the wealth Quality Research Institute

It is believed that the slow pace of new consumer entry and the rapid escape of core consumers are the biggest problems facing LV.

Over the past two years, with the diversification and individuation of Chinese consumer consumption, LV has become less attractive to them. Consumers are no longer willing to pay for the big LOGO brand. This is the second plight faced by luxury brands in recent two years.

The largest increase in liquor business sales increased by 26% to 1 billion 200 million euros compared with the same period last year. In addition to the continued positive effects of the US market, the growth rate of China's spirits market has contributed significantly to this data.

However, earnings data do not really reflect the performance of the group. The fact is actually worse than it looks.

Taking the fastest growing liquor business as an example, the three quarter revenue grew by 26% over the same period last year, but the growth rate was only 16% after excluding exchange rate factors.

North Institute of Commerce analysis, China's "three heroes"

Let the luxury industry go through the cold winter.

Compared with garments and other categories, package products are more affected by the "three powers" consumption policy.

In addition, LV leather design is full of LOGO, which has lost more personalized consumer groups.

Although LV began to LOGO in 2013, it obviously did not lead to more sales.

More and more

With the competition of luxury brands in the global competition, the pressure of brand itself is also increasing under the trend of brand multipolarization and consumption diversification.

"For LVMH group, the historical mission of LV as brand money printing machine has come to an end.

The group is now adopting two main strategies, the first is to start flagship Dior and other brands.

The second is to take the fashion line, let the brand sink and face a broader consumer group.

Zhou Ting said that such a practice can play a certain role in the performance, but it can not be restored to the rapid growth.