Roughly eight years ago, my brother and I would count the numbers of Louis Vuitton, Gucci, and Coach, on the streets in Hong Kong. We would get to approximately 20 Louis Vuitton in an hour. We played this game again a year ago, but we could only got less than 20 in a day. The demand for this luxury has declined a lot in China ever since social media has bloomed.
A secretary walking out of Louis Vuitton after purchasing a bag. Photo: businessinsider
According to many customers, Louis Vuitton is too typical and can be seen everywhere. Everyone has it and it doesn’t seem like a luxury anymore. Louis Vuitton is now referred to the “brand for secretaries”, and many customers moved onto more expensive brands to leave this ordinary brand.
Louis Vuitton is now trying to expand worldwide to protect its “exclusive image”, according to the chief executive. They will start diversifying its business and immerse in restaurants and catering to attract young customers. Personally, I don’t understand why they would expand to restaurants and catering, as I don’t see how a brand that sells high quality bags can correlate to a restaurant. I believe they should reconsider their business plan and marketing strategies to keep up with the ever-changing world of technology. Instead of letting social media decline the demand of this luxury, they should use social media as an advantage and help them increase demand for this luxury.
Work Cited
“As China Luxury Sales Drop, LVMH Turns To New Target Demographic To Boost Business.” International Business Times. N.p., 06 July 2015. Web. 15 Oct. 2015.
Cox, John Woodrow. “Louis Vuitton and Gucci’s Nightmares Come True: Wealthy Shoppers Don’t Want Flashy Logos Anymore.” Washington Post. The Washington Post, n.d. Web. 15 Oct. 2015.
“LVMH Sales Slow in Hong Kong as Chinese Demand Drops Globally.” South China Morning Post. N.p., n.d. Web. 15 Oct. 2015.
“Louis Vuitton Slows Expansion to Protect Image.” The Globe and Mail. N.p., n.d. Web. 15 Oct. 2015.