Louis Vuitton logo risk of fatigue Chinese flavor ripeness
Luxury goods in China beginning makers have long relied on to grab the consumers of this $ 1,000 handbags and other expensive - and profitable - goods. Now Chinese tastes in a way that the brands that have the most aggressive in the country expanded develop can hurt. In addition to Louis Vuitton (TM) bags, wallets Gucci, Omega watches and towns from flooding, such as Beijing and Shanghai, the consumers can easily avoid products with the logo in favor of alternatives are more pronounced. Prada Cosmetic Bags "As the luxury industry grows, the Chinese are getting more sophisticated about the products they buy," said Fflur Roberts, global head of luxury goods research at Euro Monitor in London. "It's not just the look of bling." The transition to products less visible and often more expensive in Europe and the United States happened after the collapse of Lehman Brothers Holdings Inc. 2008 Brothers, the tooth can grow Vuitton and Gucci, which until recently, more than half of the luxury sells handbags in the world's second largest economy, HSBC estimates. Store sales of luxury brands such as niches Bottega Veneta and Yves Saint Laurent, of Paris-based PPR SA belongs is expected to almost triple to increase over the industry average this year, a growth slowdown Economic takes its toll on demand for, HSBC. Cheaper bagging such as New York-based Coach Inc. (COH) may also benefit the increasingly demanding consumers, value for money, the agency predicted. Always spend "Consumers continue to spend in China, but they spend differently," Uche Okonkwo, Executive Director of Paris Luxe Corp Consultant As Chinese consumers said better information on trends become "luxury companies work harder to have to sell that before five years. It is a question of balance. " China's gross domestic product grew by 7.6 percent in the second quarter of last year, the smallest increase in three years and the sixth quarter slowdown. China is the world's fifth largest luxury that. 92 billion yuan ($ 14.6 billion) in sales in 2011, according to Euro Monitor Move upmarket Vuitton, Gucci belongs to PPR (PP) and Burberry Group Plc (BRBY) responded in part by pushing the prices and the introduction of more exotic products such as Gucci shoulder bag and Burberry python ￡ 6.000 $ 4.100 ($ 9.700) alligator clutch their upscale image . Recent reports suggest sales strategy does not work. Burberry said same-store sales declined since the end of August, adding that Chinese tourists spend less to visit their trench coats and other products from Europe. "We were the first to report a slowdown, but we will not be the last," said CEO Angela Ahrendts said on 17 September after 2013, the manufacturer of luxury British fashion spring / summer in London. Gucci show in September 19 in Milan Fashion CEO Patrizio Di Marco refused to comment on the company's performance. PPR reported third-quarter sales on 25 October. A spokesman for LVMH, which also makes quarterly sales next month, went on sale Vuitton comment. Chinese consumers can represent more than 25 percent of global sales of luxury, HSBC estimates. Fatigue Logo Luxury sales in China slowed, there are more consumers to travel abroad and see the dresses and accessories can cost twice cheaper in European and American markets, as they do at home. Ahrendts and note that keep the change of direction once a decade in China for luxury brands sales slowed as many people on gifts to officials until it is clear to keep that power. Prada (1913), which uses more leather in their collections of Louis Vuitton bags and leaves differ less on the logos can benefit their products, as consumers seek alternatives to Vuitton and others to HSBC. The Milan-based company said yesterday that same-store sales have slowed in the past two months, even if market conditions deteriorate. Vuitton, Omega and other "mega-brands can begin fatigue suffers branded early entry in many markets," writes Erwan Rambourg, analyst at HSBC. "We call this the" first mover disadvantage "of." LVMH shares fell 0.8 percent to € 121.85 after 11:22 on the market of Paris, the third largest decline in the CAC Index 40th PPR decreased by 0.3 percent in Paris, € 121.65, while Burberry fell 0.4 percent in London. Hermes International SCA (RMS) of 0.3 percent. "Standardization" Vuitton has 39 stores in China, while Gucci and Burberry to 54 66th Hermes, which last month raised its 2012 growth target after interim results beat estimates on demand in Asia has 21 branches throughout the country. Prada has about 20th Supposedly ultra-luxury segment - the most expensive goods - Hermes, where the competition is the fastest growing market, outperforming the rest are held until at least 2014, says Bain & Co.