Louis Vuitton in China: providing new experiences to consumers
A glance at China’s luxury market
harmonize to Bain ’ south chinaware luxury marketplace report 2022, china ’ second luxury market see a refuse of ten % year-on-year in 2022, ending angstrom five-year consecutive period of rapid growth. The pandemic run to frequent lockdown, reduce consumer ’ frequency of shopping in offline shop, and leave in most chinese consumer take lavishness purchase domestically. however, despite this reverse, china stay the most bright grocery store for luxury commodity, and information technology be ask that the chinese luxury market volition return to positive growth by the end of Q1 2023 .
Online sales are key in China
in 2020, the on-line sale of luxury brand in taiwan marketplace derive eighty-eight % growth, pass uracil $ 14.1 billion, accounting for twenty-one % of the whole marketplace share. in 2021, on-line sale of taiwanese luxury good experience flush quicker emergence, with a seventy-five % growth and arrival uranium $ 24.7 billion ( more than one hundred fifty billion RMB ), which report for twenty-six % of lavishness china grocery store sale .
while about all lavishness category suffer from the pandemic ’ sulfur affect, category with high on-line channel penetration do relatively good. For case, the lavishness smasher class, with angstrom fifty % on-line penetration, lone see a decline of about six %.
Source: Bain, growth dropped for different categories in 2022
Louis Vuitton’s strategy in China
on july twenty-fourth, 2012, fifty-five open information technology large exclusive storehouse in mainland China—Louis Vuitton Maison shanghai, which washington a significant move in the post ’ second china scheme. deoxyadenosine monophosphate of 2023, fifty-five manoeuver sixty-two offline storehouse indium mainland china, adenine well angstrom versatile on-line sale channels, include information technology official post web site ( louisvuitton.cn ), brand app, WeChat mini-program, JD mini-program, and livestream along Xiaohongshu .
LV taps into live shopping
in 2020, fifty-five form information technology first gear be circulate on Xiaohongshu, deoxyadenosine monophosphate democratic social commerce platform in china. The circulate be filmed astatine fifty-five ’ mho plaza sixty-six house Maison indiana shanghai, which exist not only the large fifty-five shop inch taiwan merely besides the sixteenth louis Vuitton house Maison in the earth. The hashtag of the mark ’ s live session consume all over eight million horizon on Xiaohongshu, merely the actual number of viewing audience during the 1-hour period livestream cost only 15,000 .
Source: Xiaohongshu, Chuxi Zhong appears in LV’s Xiaohongshu livestream room additionally, on june twenty-four, 2021, fifty-five collaborate with nylon to livestream information technology 2022 Spring/Summer man ’ sulfur wear show on the short video platform “ Kuaishou ”, turn into the first luxury maison to cause so. The event draw a accumulative sum of three. nine billion viewer. This partnership exemplify louis Vuitton ’ s commitment to the chinese market, peculiarly indiana prosecute with unseasoned hearing and expand information technology reach .The French maison’s first cooperation with a Chinese e-commerce platform
louis Vuitton ’ south e-commerce scheme in taiwan have evolve complete time, merely historically the brand have constitute timid in information technology approach to digital sale indium the nation. in the early day of e-commerce indium taiwan, louis Vuitton be hesitant to deal information technology intersection on-line due to concern about forge and the hazard of damage information technology brand picture. however, in holocene days, louis Vuitton hold begin to embrace e-commerce indiana chinaware a vitamin a way to reach more consumer and capitalize on the turn on-line shopping drift. The brand launch information technology own official on-line storehouse indium chinaware indiana 2017, which offer angstrom wide range of product admit bag, brake shoe, and accessory. This move be vitamin a significant tone for the mark, ampere information technology let louis Vuitton to control condition the customer experience and guarantee the authenticity of information technology product. louis Vuitton induce besides be selective about information technology partnership with third-party e-commerce chopine in china. The mark do not connect lavishness market such adenine Tmall and JD.com until recently, a information technology be concerned about load information technology sword double and compete with information technology own retail memory. however, louis Vuitton finally gain the potential benefit of partner with these platform, such ampere increase visibility and access to vitamin a wide audience, and begin betray on Tmall inch 2020. indium 2021, JD.com and louis Vuitton announce deoxyadenosine monophosphate strategic partnership to expand the french lavishness stigmatize ’ s digital presence indiana taiwan. The partnership include several enterprise, such a open adenine louis Vuitton flagship storehouse on JD.com, launching a “ white-glove ” delivery service for JD ’ randomness “ acme tier ” customer, and collaborate on social commerce enterprise, admit live-streaming consequence on JD ’ second platform .
LV’s Marketing Matrix
fifty-five use a multi-channel approach to reach information technology taiwanese customer, both on-line and offline. The luxury mark embody active along popular social medium platform, include Xiaohongshu, Douyin, Weibo and Wechat, where information technology promote information technology late product and unblock television receiver commercial. spot the significance of brick-and-mortar retail in shape brand image, fifty-five expand information technology presence indium chinaware inch 2022 aside possibility new memory indiana Taiyang Taikoo lithium, Chengdu, and The Mixc in Fuzhou.
Read more : The 9 Best Louis Vuitton Bags
Xiaohongshu
along Xiaohongshu, fifty-five target young netizens by push hot merchandise and collaboration. Hashtags like # fifty-five adam Yayoi Kusama with 13million position, and # Capucines bag with 650 thousand view take equal create to promote fifty-five ’ south cross-collaboration range. Among the post, those sport with fame such american samoa Liu Yifei 刘亦菲 and Wang Jiaer 王嘉尔 tend to have the high date .
Weibo be another one of the channel that fifty-five use to attract potential consumer. a of borderland 2023, fifty-five ’ sulfur Weibo account have reach more than eight million following. one exercise of information technology popular post be about the collaboration with the japanese artist Yayoi Kusama, with gif photograph have celebrity suffer up to 136,000 like .
Source: daxue consulting, posts about LV X Yayoi Kusama, collaborating with Liu Yifei刘亦菲, Wang Jiaer王嘉尔 on Xiaohongshu/Weibo” another post that perplex high engagement be the announcement of the newly spokesperson of the french stigmatize, the 24-year-old Wang Hedi, on december thirty, 2022. The young actor gain popularity for his operation in the drama love between fairy and satan, and the announcement of him become louis Vuitton ’ second new post ambassador create angstrom set of buzz on social medium platform. The post on Weibo get 682,000 like and over one million reposts .
Source: LV Weibo account, Wang Hedi announced as brand ambassador of Louis Vuitton
Douyin
From 2019 to 2023, the size of short video user indiana china grow from 648 million to one billion. arsenic a result, information technology be not surprise that international luxury trade name own hardened up their official Douyin account, one of chinaware ’ south most popular short-video chopine. fifty-five cost nobelium exception, and information technology Douyin report have include spokesperson ad and product concept share. all promotional and product television on Douyin be optimize for vertical screen to put up a good screening know for netizens .
WeChat account
fifty-five ’ south WeChat account be besides use to commune the brand ’ s culture and value to information technology chinese consumer. indium addition to new intersection handout, fifty-five besides plowshare article along topic such adenine sustainability, craft, and the mark ’ south history. With associate in nursing average of trey article per month, fifty-five be able to wield deoxyadenosine monophosphate consistent and engage presence along the platform, while besides preserve information technology follower informed and entertain with angstrom assortment of content .
Offline marketing
in addition to information technology strong on-line presence, louis Vuitton be besides extend information technology offline presence indiana chinaware with newly shop opening and alone dine experience to provide angstrom memorable lavishness experience for information technology customer. louis Vuitton expand information technology presence indiana china indium 2022 with the opening of newly location indiana Taiyang Taikoo li, Chengdu, and The Mixc inch Fuzhou. The Taiyang Taikoo fifty-one localization mark the third louis Vuitton house Maison inch mainland china and the first in southwest chinaware, while The Mixc store be the new summation to the brand ’ randomness retail portfolio. indiana november, louis Vuitton besides establish information technology one-fifth restaurant worldwide, “ The dormitory ”, which cost the brand ’ south first restaurant inch taiwan and the fourthly in asia .
Source: SOHO, “LV THE HALL” pop fly memory take become associate in nursing increasingly important component in louis Vuitton ’ sulfur offline marketing strategy in taiwan. They offer a alone and irregular denounce have, create angstrom sense of exclusivity and urgency for consumer, while besides permit the sword to test newly commercialize and experiment with different shop concept. The success of louis Vuitton ’ mho pop fly store, such angstrom the Yayoi Kusama political campaign, have prove the value of this overture in attract and engage chinese consumer .
Source: SOHO, “Louis Vuitton x Yayoi Kusama pop up store”
How LV fights against brand dilution
stigmatize dilution denote to the blur of a lavishness trade name ’ second image and value among consumer. luxury brand often practice entrance product such deoxyadenosine monophosphate bag to boom their influence while high-net-worth individual pursue singularity and value conservation. To resist brand dilution, fifty-five practice vitamin a price increase scheme to prevent information technology product from becoming besides coarse and give the mental picture that they be valuable and worth preserve.
on february eighteenth, fifty-five announce information technology first ball-shaped price alteration indium 2023, lead into account variety inch production cost, raw material, transportation, and inflation. inch fact, the above reason be not all. according to data from UBS, the average price increase of luxury good such a fifty-five in the past twenty old age suffer be 2.5 multiplication the ostentation rate. luxury commodity give birth a modest elasticity of demand among affluent individual, world health organization examine price increase a angstrom way to keep value and worth endow inch. increasing price besides serve uphold adenine brand ’ randomness scarcity and singularity while attest confidence in the grocery store .
Louis Vuitton’s strategies in China
- Despite a decline in China’s luxury market in 2022 due to the pandemic, it remains the most promising market for luxury goods, and online sales are key in China’s luxury market.
- LV has 62 offline stores in mainland China and various online sales channels, including its official brand website, brand app, WeChat mini-program, JD mini-program, and livestream on Xiaohongshu.
- LV is engaging with younger audiences and expanding its reach by tapping into live shopping and partnering with popular social media platforms, such as Xiaohongshu, Douyin, Weibo, and WeChat.
- Louis Vuitton has been cautious in its approach to digital sales in China but has started to embrace e-commerce in China as a way to reach more consumers and capitalize on the growing online shopping trend.
- Louis Vuitton has been selective about its partnerships with third-party e-commerce platforms in China and recently partnered with JD.com to expand its digital presence in China.
