When the fourth quarter of international financial crisis spread to China’s retail market last year, it was generally considered that luxury chanel handbags
products can not bear the brunt of the storm. But a survey of September this showed that China was the only country which had positive growth in the financial crisis. How was Louis Vuitton able to achieve contrarian growth? It has to start from LV’s symbolic significance in China.
Recently, a survey of favorite luxury goods in the eyes of Chinese showed that LV was the most favored clothing brand by Chinese, and Cartier had the head card of jewelry and watches. One argument is described that the Chinese people, regardless of having money or not, whether he is rich, upstart vanity, or a small white-collar worker, with regard to famous brands, the first brand occurs to them is LV while Cartier, chanel
Gucci and other luxury items are also seen as the big-name fashion symbol and status symbol.
Brands have the right to speak. The huge brand appeal make LV always take the initiative. High-end stores tend to be make a concession in order to introduce a certain brand. They would reduce the rent, upgrade the environment and even offer the decoration. Some said that 100 years endeavor was to enhance the image of the mall. So the intersection of a small amount of money was reasonable. However, even faced upon these preferential treatment which the general brands dare not to think, LV is still selective LV can not be found in the high-end department store in Beijing Lufthansa Friendship Shopping City while the Scitech Plaza also can not retain Cartier.
Many people have a feeling that LV’s brand strength is indeed too strong. It has survived three times of the economic crisis and the Great Depression with the strategy of never reducing prices.
But as for the financial crisis of this time, LV made an exceptions. From the beginning of the year, LV carried out the 2% -7% of the price reductionin the domestic stores in 22 cities except watches and jewelry. Although the price adjustment was because that what LV claimed the depreciation of the euro, we understand that LV have to put a greater focus on China.
