Luxurious Old Brand In The Mire Of Over Popularity.

Bernard Arnott (Bernard Arnault) recently worried that her eyebrows would not show up. The Louis Vuitton, the steering wheel of luxury carrier MOET & CHANDON Hennessy LV group (LVMH), was very unsatisfactory because the overcrowding and the weakening demand of Chinese consumers caused the brand that had brought Bernard's highest honor and profits to grow fatigue.

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In the same situation, there is another classic luxury brand Gucci (Gucci), P, which is facing the worst period after the financial crisis.

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Antonie, a luxury analyst at P > HBS, believes that it is wrong to attribute the weakness of the two brands to the whole industry. The trend of their performance reflects more consumers' preference for these brands.

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< p > luxury brand's popularity is a double-edged sword. It will bring more profits to the wider consumers. But once the exclusive and exclusive luxury brands are lost, the most important brand value and image will be lost.

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< p > realizing the negative effects brought by over popularity, Gucci and LV are now trying to rebuild the high-end image of the brand, improve product grades and prices, produce more "LOGO" and expensive leather products.

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< p > only once the noble nobility of Pyramid has been removed and the outer garment has been put on the "popular" coat, can LV, Gucci and the luxury big players who used to adopt the same mass strategy in the past return to the camp at the top of Pyramid? Zhou Ting, who has studied the luxury goods industry for many years, is pessimistic: "luxury brands are likely to fail to come up. The damage of brand value and image is very serious and can only accept the results of the market."

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< p > < strong > reshape the high-end image < /strong > /p >

< p > Gucci's a href= "//www.sjfzxm.com/news/index_c.asp" > Kai Yun group "/a" (Kering) has achieved remarkable results in China after its remarkable achievement in 2012.

As a group veteran, Gucci's performance has also been weak. The latest third quarter earnings report showed that its sales fell by 5.4%, the worst performance in 4 years.

Jean-Marc Duplaix, chief financial officer of Kai Yun group, admitted for the first time that Gucci's sales in China were down.

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< p > because it is not expected that consumers will be so far away from LOGO products (especially in China), LV's performance is also slowing down rapidly, and its group fashion leather Department also suffered a 3.8% decline in the third quarter.

According to foreign analysts' estimate, LV has only achieved 1%~2% growth.

In the early 2010 to early 2012, the two luxury brands achieved over 10% sales growth.

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Antonie, a luxury analyst at P > HBS, clearly believes that this reflects more consumers' weakness in their preferences, rather than the slowdown in the whole industry.

Other luxury brands are still growing well.

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< p > different luxury reports have pointed out that the rapidly changing Chinese luxury consumers are becoming more and more mature. The luxury brands that are low-key and "de LOGO" are becoming increasingly popular among them. The growth of these brands in the past two years also reflects this trend.

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"P >, aware of the negative impact of over popularity, Gucci and LV are now reshaping the high-end image of the brand.

In the first half of this year, opening up cloud said it would stop Gucci's expansion in China.

Duplaix told foreign media reporters at a recent conference call that the brand is also relocating to a more high-end market.

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< p > last year, shrewd < a href= "//www.sjfzxm.com/pioneer/" > Bernard < /a > realized the problems of LV and tried to restore its lost honor.

At the beginning of this year, LV began a series of reinventing measures: upgrading product lines, suspending the expansion speed, "de LOGO" in the Chinese market, and raising prices in the Japanese market.

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P, along with these, is also a series of adjustments by LV Leadership: last year, Yves Carcelle, which had long been the CEO of the brand, was replaced by Michael Burke; in June this year, Bernard's daughter Delphine was appointed Deputy General Manager of LV.

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< p > < strong > can it be redeemed? < /strong > /p >

< p > only after the top of the Pyramid has been put on the "popular" coat, will LV, Gucci and the luxury brands who used to adopt the same mass strategy as they can return to the camp at the top of Pyramid? < /p >

< p > "trying to restore the brand value and image by improving product grades in the fast decline", I think this is the most unprofessional practice of brand management. Zhou Ting, in an interview, did not avoid pointing out that "raising the product grade is actually a way to raise product prices. These brands still think Chinese consumers are thinking that" expensive is good ", but now the concept of Chinese luxury consumers has changed.

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According to Zhou Ting, the problems brought about by the over popularity of luxury brands have all come into being: the brand value and image are seriously damaged, and the exclusive luxury goods in the top of Pyramid have become popular fashion products in the past P.

In the Chinese market, more and more counterfeit goods, such as e-commerce, luxury goods, etc., have been exacerbated by the decline of these brands.

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< p > "I think it is necessary to redefine the luxury of the future. Is the luxury price higher than the luxury price? Apart from the price, I think there is still a limit."

Cui Hongbo, founder and chief executive officer of Brand Management Consultants Ltd., said in an interview with reporters.

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< p > Zhou Ting divides luxury consumers into market core consumers and marginal consumers, who are more sensitive to prices, mostly consumer oriented luxury products.

The main decline of these luxury brands is that the core consumers are abandoning them. After raising the price of products, the marginal consumers' purchases will become more prudent.

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< p > < < a href= > //www.sjfzxm.com/news/index_c.asp > > luxury brand < /a > probably will not come up. The damage of brand value and image is very serious and can only accept the result of the market.

Zhou Ting, a redemption of luxury brands, is a bit pessimistic.

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Compared with P, Cui Hongbo is more optimistic: "the challenge is certain, but I do not think that focusing on the high-end is a wrong idea. The key is to restructure the brand, including the brand image to be extended. In the past, they are going to extend downward. Now we have to do something upward, such as re launching a new product line or brand, forming a certain division."

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Although P is somewhat popular, Cui Hongbo believes that these old brands have not lost their status in the luxury camps. The recognition degree of the brand still makes them have opportunities in the new consumers.

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< p > "in addition, we should make some changes in the marketing strategy, such as service capability and brand pformation. It is a very important topic. Instead of passive acceptance, we should take the initiative to do self optimization and remodeling."

Cui Hongbo said.

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< p > for Zhou's most effective antidote, Zhou Ting's suggestion is: "improve the service quality of single store, improve product quality, pay attention to quality, fight hard to fight."

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