Louis Vuitton Luxury Culture Affect China - ReplicaEstore.us

When the luxury brands like Louis Vuitton face china market, they have to choose to cut prices under the global economy crisis. Therefore, the endless hope of china market is the main problem for LVs price adjustments.

First, the construction of the consumers is different. The actual consumer group of Louis Vuitton has a big difference from that in Europe country. In Europe country the main consumer group of the fashion luxury is basely consumers at the age of more than 40. But in china, the consumers are younger. Big scale is from 18 to 50, small scale is from 30 to 50, and the group at the age from 18 to 39 is the main group for fashion consumption. Such a character means that if the LVs want to sell product to those Chinese rich people of bigger age then they are making mistake. What’s more, Chinese consumer income and consumer is not directly related. The rich are not possible to stronger than middle class in consuming power. Because china is in the period of pursuing fashion, in which pursuing fashion is the main character for Chinese fashion market. Under such a background there will be a group who just has 3000 a month but will use several months’ income to buy Louis Vuitton. This means that the fashion luxury marketing can’t be the same as that in foreign country. Too high, there will be no consumers; too low, there will be no fashion luxury. Therefore, cutting price a little becomes the necessary choice for Louis Vuitton to expand their market sale volumes.

Second, china is a market in which the copycatting is everywhere. The reason why there are so many copycatting products is that the general income level of Chinese consumer is not high. Not everyone can afford to the luxury, even there will be some consumers who can scrimp and save to get an original Louis Vuitton there still be more people who cannot afford to the expensive LVs. The group taking up 1% of Chinese pyramid is not large enough, and then the real fashion luxury consumer group is the 10% or 20% of the Chinese pyramid. This leads that if the fashion luxury want to get a large scale of market it will be hard. The fact that many consumers buy copycatting products shows that these people emphasize the brand and logo, but they can’t afford to it.  It also shows that LVs set the target in china too high. The price adjustment is a way to make more people buy original products not copycatting products.

Third, the tax and market plan let the fashion products in china mainland higher than those in Hong Kong by 20% or 30%. In these years many luxury brands entered china market with a high price, they want to keep high benefits and high-end brand image with high price. But this results that many consumers in china mainland go to buy in America and Europe countries or Hong Kong. Louis Vuittons should shorten the price difference between the mainland and Hong Kong to lift the shopping desire and form their shopping habits. This is a way to get long-term benefits, for china is still a country with a big population.

Fourth, the affection of the financial crisis leads the Europe and America country market depressive. In order to go through this global winter, choosing a new market like china is not a bad choice. Because china has a large consumer space, especially china is a larger secondary or third line market and the consumer group becoming rich there is pursuing the life quality. Therefore, by price adjustment, LVs can slowly deep into china market, knowing the most scale and value group in china.

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