LV Guangzhou Customs Shop GUCCI Also Need To Close, This Is Pushed To The Domino Dominoes.

It is said that big business is becoming more and more difficult in China. Nowadays, even Louis Vuitton, the leader of international luxury brands, has been unable to bear any pressure and has begun to close operations in China. Insider told the "Fashion interview notes" that Louis Vuitton will close 5-6 stores in China.

Just yesterday, the Yangcheng Evening News reporter found that LV (thematic reading) shops in the east of Guangzhou city have been quietly closed, this is the first store opened by LV in Guangzhou. "People familiar with the matter said that LV has already started a plan to integrate stores in China. Apart from three places in Beijing, Shanghai and Hangzhou, there will not be more than one store in other cities." The media reported.

The "Fashion interview" has been confirmed to the industry that unlike some of the big shops with poor performance in the past, new locations have been re opened in other places. The difference is that the LV is really closing stores in China. "Everyone is under a lot of pressure. There are too many stores." The person sighed. Obviously, the luxury brand integration plan in China has already begun. "Fashion interview notes" also learned that other luxury brands including Zegna will also begin to adjust the number of stores in China.

In the 2015 global luxury spring report released by Bain, the consultant pointed out that luxury goods (China led) Asia Pacific market will be in a state of stagnation in 2015, and luxury consumption in mainland China will be reduced by 2%-4%.

Under the pressure of global price adjustment, the rapid development of e-commerce, and the closure of too many Chinese shops, luxury brand's "rectification movement" in China has begun vigorously.

In addition, the Gucci shop is about to start.

This is the news from our latest practitioners. In addition to the LV which has already been closed in China, Gucci, the flagship brand of Kai Yun group, has begun to close some domestic stores at the end of the year.

Since 2012, China's luxury goods market has been severely damaged by anti-corruption, macroeconomic slowdown, the serious outflow of luxury goods, and the changes in consumption habits and preferences of high-end domestic consumers. The performance of luxury brands in China has begun to appear to be weak or even varying in varying degrees.

In the first quarter of 2013, the LVMH group led the fashion and leather Department of LV. achievement It has slowed sharply, showing the worst growth since the financial crisis of 2008. But before LV decided to rebuild its brand and refocus on high-end products, the brand pressure in China on the overexposure of counterfeit goods and brands also had a negative impact on the image of the brand in China.

With the reshaping and the new designer pouring new blood into the brand, and in the past two years, LV constantly excavated the brand DNA to enhance its brand value, and its brand image in China has been reversed. But this is still unable to save its performance in the Chinese market, especially in this year's Hongkong issue.

"Due to China Mainland market Continued weakness and continued deterioration of the Hong Kong and Macao markets led to a further shrinkage of China led Asia Pacific market (except Japan). In the latest report of the first half of 2015 and the latest three quarter earnings report, LVMH can always see such a statement when referring to the fashion and leather goods department led by LV. In fact, such a statement is no stranger to other luxury brands' earnings this year.

The outbreak of the financial crisis in 2008 opened up a new readjustment of the global layout of luxury brands. With the obsession of the old European and American markets, the emerging market led by the Chinese market rose rapidly, and China became the sales engine of many luxury brands, and Chinese consumers also jumped to become the largest luxury consumer group in the world. in the meantime Luxury brand In the domestic crazy horse race enclosure, in order to seize more consumers, after occupying the first tier cities, luxury brands are marching on to the two or three tier cities.

But nowadays, the poor sale of luxury brands has also made many stores in the past suffer a lot of pressure, and even many shops have been reduced to showrooms. In fact, according to people familiar with the industry, LV's domestic negotiations have been going on. Especially when the luxury goods were in good condition, some lots were not very good shops. Many merchants offered many investment subsidies to attract big shops, so it was not so easy for the brand to close. The low business of these shops also brings pressure to brand inventory and personnel costs.

"From another point of view, closing stores is also a good thing. Luxury brands have arrived at the time of intensive domestic cultivation," an insider told us.