LV said that less than 3 million people are non-income groups, and the minutes of luxury LV internal meetings flowed out, causing three major controversies. It is clearly stated that it only serves high-net-worth people with an annual household income of more than 6,543,800+million. Lu said that those below 3 million are non-income groups.
Lu said that the income group below 3 million is 1. Louis Vuitton is a French luxury brand, which belongs to Moet Hennessy-Louis Vuitton Group. Its products include handbags, shoes, ready-made clothes, high-grade jewelry and personalized customization services. Since China opened its market, it has been positioned in the ranks of high-end luxury goods and is highly sought after by consumers. CEO "bernard arnault" became the richest man in the world with the unremitting efforts of China consumers.
Even though Louis Vuitton suffered an epidemic in the past two years and all walks of life entered the commercial winter, it has always insisted on raising prices. It is understood that LV announced the price increase five times in the past year, with an increase of as high as 20%, and even some classic styles once rose as high as 54%! There are many luxury brands. Why can only he ascend the throne of the richest man in the world unimpeded?
Can you afford a LV?
Recently, an outline of lvmh Greater China executive conference call has been widely circulated. The specific contents are as follows: "LVMH divides LVMH's customers into three categories, namely, ultra-high net worth (personal annual income10 million RMB or family annual income above 30 million RMB), high net worth (personal annual income of 3 million-10 million RMB or family annual income of 0/0 million-30 million RMB) and
In addition, the meeting also emphasized "continue to raise prices and eliminate non-income customers."
As soon as this news came out, many consumers exploded! People under 3 million are called people without income? According to Hurun Wealth Report, only one thousandth of China's total population can be a customer of Lu! Give up 999 per/kloc-0.000 people's spending power and catch one person to sell? Can this really help LV embark on a higher-end route?
Really eliminated or want to be market-oriented?
I have to admit, it really works! If everyone thinks that "price increase" can dispel China consumers' love for luxury goods, then you are all wet! After all, this is a big country that can push bernard arnault to the throne of the richest man in the world!
According to the consulting data of Bain, in 20021year, the sales of personal luxury goods in Chinese mainland increased by 36% year-on-year, reaching 47 1 billion yuan. This data is twice that before the epidemic! Today's protagonist Lu achieved good results in the first quarter of 2022, with operating income as high as 654.38+024.35 billion yuan. Roughly calculated, its daily operating income can reach 654.38+0382 billion yuan!
It can be seen that we don't know whether LV is higher-end, but it is more profitable. It's true! This ability to absorb gold still occurs in the "cold winter season" of major retail industries. This has to make everyone wonder whether the price increase is to eliminate customers or for better marketing. Why can his performance grow steadily in such an economic environment?
Behind the growth of performance
The reason is simple, because luxury goods never lack consumers! It can exist because it has a good grasp of "human nature". When people are willing to pay a high price for a product, it must be that the product can bring us the value we need.
Luxury goods give people a feeling that they can have a certain "social status" by spending a lot of money to make advertisements, thus arousing people's comparison psychology and desire to buy. Therefore, even if it raises prices substantially, it will not arouse people's resentment, because its own value is to prove our social status, and the higher the price, the more popular it will be.
Not only that, "price increase" is equivalent to product appreciation for those who have already bought it! The faster the increase, the more people will buy it. After all, investment funds will still have the risk of losing money, and the risk of buying such products with the same funds will be greatly reduced.
According to the "Top Ten Financial Packages in 20021year" compiled by Koala, CELINE ROMY's underarm bag with the highest price increase in 20021year increased by 95% compared with the beginning of the year. How many investment projects can achieve this increase? Therefore, the mentality of starting before the price increase is also one of the important reasons for the substantial growth of LV performance.
Lu said that less than 3 million people belong to non-income groups. 2 luxury LV internal meeting minutes flowed out, and the information impact was too strong, causing three major controversies.
First, the entry-level package of nearly 10,000 yuan is too cheap, and it is necessary to continue to raise prices; The second is to divide customers into three categories, which are divided into 369 and so on; Third, it is clear that it only serves high-net-worth people with an annual household income of more than 6.5438+million, and regards the annual income below 3 million as a non-income group.
Minutes of Lu's internal meeting
You know, more than 90% of people in society earn 1 10,000 a month and earn 3 million a year, which is more than 99.9%. In Lu's eyes, they are not their customers.
Other brands try their best to please customers and rack their brains to expand consumer groups, while LV does the opposite, threatening to refuse customers with incomes below 3 million. Aren't you afraid that the company won't survive?
You can look at LV's product line. Besides the main luggage, there are clothes, jewelry, watches, belts, cups and plates, and even toys. It can be said that its products have covered all aspects of daily life. Obviously, it wants the rich to regard luxury goods as daily necessities.
LV table football
In this way, it really doesn't need to consider users who buy products at low frequency. Its ultimate goal is to beat Chanel, Hermes and other luxury brands by upgrading their styles.
By actively leaking internal information, LV sent a clear message to everyone, and the annual income of people who consume LV exceeds 3 million. In this way, Lu is not just a bag, but a walking 3 million. This makes the people who bear it step out of the step of not recognizing their parents.
In fact, LV's obscene operation will not reduce customers, but will promote sales.
Nowadays, second-hand luxury goods have become a business. The price of second-hand goods changes with the price trend of new products. When new products go up, second-hand goods also go up. If the assets exceed10 million, LV's intention will definitely be obtained, and the price increase will further strengthen the investment value of LV. If you buy, you earn; if you buy more, you earn more.
Think again, what will a person with an annual income of 2.5 million think when he sees this news? He will never scold Lu for looking down on him, but will buy it quickly. If he buys it, he can make others mistakenly think that his annual income is 3 million, and his value will rise immediately.
But for urban white-collar workers, spending a month's salary to buy a bag is still squeezing the subway every day. Obviously not 3 million, it's really fake. Don't buy it.
Therefore, it seems that LV is still very authentic. It does not pit the poor and prevents young people from easily entering the trap of consumerism. This contrast is even more obvious. Those brands that raise prices under the banner of "luxury goods" have ulterior motives.
Lu said that less than 3 million people are non-income groups. Recently, a screenshot that is said to be the main point of LVMH Greater China executives' conference call went viral online.
To sum up, that is to say, LV will continue to raise the price, so that the entry-level bags will rise to the level that "non-income customers" can't afford, thus eliminating these customer groups and serving the high-net-worth customers.
By the way, the so-called "non-income customer base" refers to customers whose personal annual income is less than 3 million or whose family annual income is less than10 million.
It turns out that like most migrant workers, I have no income.
Anyway, any brand has a chain of consumer discrimination, so let's not pursue this first.
Anyway, LV did raise prices several times in the past year. Especially in early February of this year, LV announced that due to "changes in production costs, raw materials, transportation, inflation and other factors", the prices of most products will rise by 10% to 15%, and the prices of some classic bags even rose by about 1 10,000 yuan overnight.
The night before the price increase, many people listened to the wind and lined up outside the LV store at 9: 30 in the evening to buy bags.
In fact, in the past two or three years, not only LV has been going crazy, but luxury brands such as Chanel, Gucci and Prada have all gone up many times.
For example, in June this year, the price of Dior's popular handbag, Little Lady Dior, was raised by 13.9%, from 36,000 yuan to 5438+ 10/000 yuan.
Celine's mini printed underarm bag rose twice in just three months, the first time from 6400 yuan to 6900 yuan, and the second time by 500 yuan.
Not to mention Hermes, the big brother of luxury brands, raises the price of products every year in 65438+ 10, and it will not drop every year. This year, the price of popular bags rose from 59,600 yuan to 65,300 yuan, a difference of 5,700 yuan overnight.
On the eve of every price increase, there will be long queues outside luxury stores. After all, you can enjoy the appreciation the next day, which is much more fragrant than buying a fund!
"Buying a fund is consumption, and buying a bag is investment!" No wonder some netizens said so.
I still remember that some marketers predicted that the epidemic has affected the sales performance of luxury brands. In order to expand consumer groups, it is likely that prices will be cut across the board to attract middle and low-end consumers.
This is a slap in the face. The epidemic has been raging for three years, and people have not cut prices, and even abandoned middle and low-end consumers by raising prices.
The reason for the price increase is indeed the same as the picture at the beginning of the article-to screen consumers.
Further thinking, luxury goods are weak under the influence of the epidemic, and product prices are often raised by several thousand yuan. There are two main considerations.
On the one hand, it can make up for market losses, reduce sales, and raise prices to improve performance, which is very similar to the price increase strategy of high-end liquor.
On the other hand, the price increase is also to maintain the high-end and scarcity of luxury brands. In addition to using attributes, luxury goods also have spiritual symbols-status, circle, financial resources and taste, which can effectively distinguish users from ordinary people. The more expensive luxury goods are, the more people can't afford them, which proves that those who can afford them are more "noble".
However, although many people compare luxury bags with fund investments, the former is not as liquid as stocks and funds. "Buying a package is not as good as buying a fund" is still a matter of opinion.