LV Ranks First In Seven Consecutive Years On Luxury Brand Value List.

Hua Tong Ming, the world's second largest advertising and Communications Group WPP, has recently released the "Brand Z world's most valuable brand report" in 2012.

The report shows that luxury goods giant Louis Weedon won the first prize in luxury goods category for seventh consecutive years with a brand value of US $25 billion 900 million.

This Louis Weedon is what we usually call LV.

So why is LV so influential? We interviewed Ouyang Kun, chief executive officer of China Representative Office of the World Luxury Association.

Ouyang Kun: similar to LV, such as Gucci and Chanel, there are many brands. But the difference is mainly LV. Now the global influence is relatively large. Many cities, including many countries, are growing in the second tier cities. LV has a wide range of penetration and radiation.

In China, when the two or three tier cities buy luxury goods, they often buy the first line of luxury goods. LV may label LV as a label. The entry-level luxury life sign, with LV, has a luxury life atmosphere. It may continue to upgrade consumption and constantly pursue more high-end brands.

Therefore, LV occupies a large market in the whole market, and the shop speed is very fast. It will also appear on the two or three line. The intensity of the expansion is determined according to the consumption of the market. The consumption of the market is fond of LV, because the LV's back can let more people know the value of the LV package.

On the list of luxury brands, the second place is Hermes, whose brand value is $19 billion 200 million.

Rolex ranked third, and its brand value also reached $7 billion 170 million.

Ouyang Kun thinks that although Hermes is behind LV, it does not necessarily want to be LV.

Ouyang Kun: brand positioning may be different. They may not want to become a brand strategy of LV's rapid proliferation.

Shops like Chanel are very slow, and there are very few stores in Beijing, like hermes bags, which may be scarce. Therefore, if you want to be like them, you should give up the pure handmade products that some brands maintain now, and turn them into pipelines. If they become pipelines, the supply chain will be upgraded, so that they can continue to carry out market opening.

Only by opening more stores can the two or three line consumers see the brand, and its influence will expand no matter in any country.

If there is no network and these mutual pmission, you can see that a person who backs Hermes or uses Chanel in the two or three tier cities does not understand these consumers, nor does he understand the value of the package. He may know that there are more people in Hermes, but the real cost of Hermes is much more.

Luxury goods are so expensive, why do more and more people rush to it? Ouyang Kun analyzed the history of luxury goods and the psychology of buying luxury goods.

Ouyang Kun: this kind of family business is a generation that inherits a generation of culture, is not bad, one is Europe has a specific environment. At that time, many people pursued luxury culture and needed luxury in the upper class social networking as a social tool, that is, the luxury culture is passed from Europe to China.

Chinese people also feel that through this luxury culture, they can enhance their pursuit of life value, enhance their social value and their social identities. This is the accumulation of luxury through many years. Therefore, he can persist to the present, and is also the greatest value of his brand.

Many people say that luxury goods have investment value. Is it true? In fact, investment value may be a concept of retreat.

Ouyang Kun: it is depreciated. In fact, there is no specific investment value. This kind of investment value is all in retreat. The so-called "retreat" is that the brand has been raising its price every year, the annual increase is about 10%-20%, and at the same time, the consumers who already consume feel that their bags are on the rise, but once they are thrown into the second-hand market, they will surely depreciate.

The real investment value is not fully available. Only a limited number of limited editions may have collectible value and investment value, but the value of investment in general assembly line is not very obvious.