LV said that below 3 million people are non-income groups.

LV said that people below 3 million have no income

LV said that people below 3 million have no income, and the minutes of internal meetings of luxury LV flowed out, which caused three major controversies. It is clearly stated that it only serves high-net-worth people with an annual family income of more than 1 million, and LV says that people below 3 million are non-income groups. LV says that people below 3 million have no income. 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-end jewelry and personalized customized services. After China opened the market, it has always been positioned in the ranks of high-end luxury goods, which is highly sought after by consumers. The CEO "Bernard Arnault" is the richest man in the world with the unremitting efforts of Chinese consumers.

Louis Vuitton has always insisted on raising prices even though it suffered from an epidemic in the past two years and all walks of life entered the commercial winter. It is understood that LV announced the price increase five times in the past year, with an increase of as high as 2%, and even some classic styles once increased by 54%! There are many luxury brands. Why is he the only one who can get on the throne of the richest man in the world unimpeded?

can you afford a LV?

Recently, a key point map of lvmh Greater China executive conference call was widely circulated. The specific content is: "LVMH customers are divided into three categories, namely, ultra-high net worth (personal annual income is more than 1 million RMB or family annual income is more than 3 million RMB), high net worth (personal annual income is 3 million to 1 million or family annual income is 1 million to 3 million) and no income (lower than the above two categories).

in addition, the meeting also emphasized that "we will continue to raise prices and eliminate customers without income."

as soon as this news came out, many consumers exploded! People below 3 million are called people without income? According to the Hurun Wealth Report, only one thousandth of China's total population can be taken as customers by LV! Give up 999 out of every 1 people's spending power and catch one person to sell? Can this really help LV to embark on a higher-end route?

Really eliminate or want to market

I have to admit that this move is really effective! If everyone thinks that "raising prices" can dispel the love of Chinese consumers for luxury goods, then you are all wet! After all, it is a big country that can put Bernard Arnault on the throne of the richest man in the world!

according to the data of bain consulting, in 221, the sales of personal luxury goods in mainland China increased by 36% year-on-year, reaching 471 billion yuan. This data is twice that before the epidemic! Today's protagonist LV achieved a good result of operating income as high as 124.35 billion yuan in the first quarter of 222. After rough calculation, its daily operating income can reach 1.382 billion yuan!

It can be seen that we don't know whether LV is higher-end, but it is more profitable. This is 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 better marketing. Why can his performance grow steadily in such an economic environment?

The reason behind the performance growth

is simple, because luxury goods never lack consumers! It can exist because it grasps "human nature" well. When people are willing to pay a high price to buy a product, it must be that the product can bring us the value we need.

luxury goods create a feeling that they can have a certain "social status" by spending a lot of money to create advertisements, thus arousing people's psychology of comparison 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. After all, investment funds will still have the risk of losing money, and the risk of using the same funds to buy such products will be greatly reduced.

according to the "Ten Financial Packages in 221" counted by Koala, CELINE ROMY's underarm bag with the highest price increase in 221 has a price increase of as high as 95% compared with that at the beginning of the year. How many investment projects can achieve such an increase? Therefore, the mentality of rushing to start before the price increase is also one of the important reasons for the considerable increase in LV performance. LV said that less than 3 million is a non-income group. 2

The minutes of the internal meeting of luxury goods LV flowed out, and the information impact was too strong, which caused three major controversies.

First, the entry-level package of nearly 1, yuan is too cheap, and the price should continue to increase; 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 family income of more than 1 million, and regards the annual income of 3 million as the following non-income groups.

Minutes of LV's internal meeting

You should know that more than 9% of people in society earn 1, yuan a month, and more than 99.9% earn 3 million yuan a year, but in LV's eyes, they are not their customers.

other brands are trying their best to please customers and racking their brains to expand consumer groups, while LV is operating in reverse, threatening to reject customers with incomes below 3 million. Aren't you afraid that the company can't survive?

you can see LV's product line, which includes 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

So, 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 the style.

by actively leaking inside information, LV sends a clear message to everyone, and the annual income of people who consume LV exceeds 3 million. In this way, LV is not only a bag, but a walking 3 million. This makes people who carry it walk out of the step of disowning 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 moves with the price trend of new products. When new products go up, second-hand goods also go up. With assets exceeding 1 million, we can definitely get the intention of LV, and the price increase can further strengthen the investment value of LV. If you buy it, you will earn it, and if you buy more, you will 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 LV for looking down on him. Instead, he will buy it quickly. After buying it, others will mistakenly think that his annual income is 3 million, and his value will go up immediately.

but for urban white-collar workers, if they spend a month's salary on a bag, but still squeeze into the subway every day, it is obvious that there is no 3 million, which is really fake, so don't buy it.

In this way, LV is still very authentic. It does not pit the poor and prevents young people from easily entering the trap of consumerism. Such a contrast makes it even more obvious that those brands that raise prices under the slogan of "luxury" have ulterior motives. LV said that people below 3 million have no income. 3

Recently, a screenshot that is said to be the main points of LVMH Greater China executives' conference call was circulated wildly on the Internet.

To sum up, LV will continue to raise the price, so that the entry-level bags will rise to the level that the "non-income customers" can't afford, thus eliminating these customers and serving the high-net-worth customers.

by the way, the so-called "non-income customer base" refers to those whose personal annual income is less than 3 million or whose family annual income is less than 1 million.

It turns out that I, like most migrant workers, have no income.

Anyway, any brand has a chain of consumer discrimination, so let's not pursue this first.

to get to the point, LV has indeed raised prices many times in the past year. Especially at the beginning of February this year, LV announced that due to "changes in production costs, raw materials, transportation and inflation", the price of most products would increase by 1% to 15%, and the price of some classic bags even rose by about 1, yuan overnight.

On the night before the price increase, many people listened to the wind and waited in line outside the LV store at 9: 3 in the evening to buy bags.

In fact, in the past two or three years, not only LV has been raising prices wildly, but luxury brands such as Chanel, GUCCI and Prada have all gone up many times.

for example, in January this year, the price of Dior's popular handbag, Lady Dior, increased by 13.9%, from 36, yuan to 41, yuan.

Celine's mini-printed underarm bag went up twice in just three months, the first time from 6,4 yuan to 6,9 yuan, and the second time by 5 yuan.

not to mention Hermès, the big brother in luxury brands, the product price will be raised in January every year, and it will not fall every year. The price of the popular bag Lindy rose from 59,6 yuan to 65,3 yuan this year, which was a gap of 5,7 yuan overnight.

And on the eve of every price increase, there will be long queues outside luxury stores. After all, buying them can enjoy appreciation the next day, which is much more fragrant than buying funds!

"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 had affected the sales performance of luxury brands, and in order to expand consumer groups, they were likely to cut prices across the board to attract middle and low-level consumers.

This is a slap in the face. The epidemic has been raging for three years, and people have not reduced their prices, and even abandoned middle and low-level consumers by raising prices.

the reason for the price increase is indeed the same as that in the picture at the beginning of the article-to screen consumers.

On second thought, the performance of luxury goods is weak under the influence of the epidemic, and the price of products has to be raised by tens of thousands of yuan. There are two main considerations.

on the one hand, it can make up for the market losses, and the sales volume will drop, and the price increase will improve the 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 the use 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 investment, 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 different opinions.