Recently, there was a news outpage that basically means that the executives of LVMH (LV's parent company) have classified people who regularly buy luxury goods:
via@ Lord Lindenwan
Then the news quickly exploded on social media.
I believe that everyone has also gotten it, and the reason why it can be quickly circulated is because many people are shocked by LVMH executives who count annual incomes below 300w as people without income. This reminds me of the meme: "Millions per capita on the network, in reality, the monthly salary is 3k." "I think there will be a new internet buzzword from now on
Seriously, at first glance you will think that "300w is no income" is really outrageous, but if you taste it carefully, it is really so, because this division is based on the LVMH Group's purchase quantity of its own customers.
The second point of the LVMH Executive Meeting
That is to say, they feel that the people who contribute the majority of sales to the brand every year are people other than the non-income people - high-net-worth rich people.
As you can cite as a few examples, I once watched a TLC TV documentary called "The Rich Life of a Billionaire", which specifically tells how high-net-worth people use their money to buy luxury goods.
One of the things that impressed me was that a teenager who had just turned 14 years old, went out with his friends, passed an LV store and bought a LV bag worth 2w yuan in less than 15 minutes after entering.
Adult rich people are even more arrogant, like what to spend 520w yuan to buy a pair of full diamond knives and forks that can not be used at all, and 900w yuan to buy a gold-plated vacuum cleaner Acropolis abounds.
There was even a rich man who bought a bathtub for 650w yuan, which was studded with up to 22,000 Swarovski crystals, and in order to place the bathtub, she had to spend money to strengthen the bathroom floor of her home, because the bathtub was too heavy and if she didn't pay attention, she would fall downstairs...
In addition to these high-net-worth individuals on the other side of the ocean, the wealthy people in Asia near us buy luxury goods casually, and the Singaporean celebrity Cai Jiayun, who grew up with a golden key, is a typical example; her father is an Indonesian overseas Chinese, and her mother is the woman who claims to have the most Hermès in the world - Cai Xinying Jamie Chua.
Since childhood, there is no shortage of money in the family, even if she does not have to go to work, there are hundreds of millions of family properties waiting for her to spend, it is said that she can spend up to 200w yuan per month on luxury goods, which is why her handbags always buy those rare materials or super limited editions.
And in addition to buying bags, she will also buy all kinds of brand couture ready-to-wear and furniture, daily necessities.
Every time she went to Fendi, she basically let her pick it out, and it was no exaggeration to say that it was like coming to her own home. So much so that she buys too much every month, buys directly from customers to become a blogger, and when the new product is released, she will be invited to participate.
You will find that the money that rich people use to buy luxury goods is not called money at all, they spend 10w yuan just like we ordinary people go to the market and spend 10 yuan to buy a few pounds of cabbage without blinking an eye.
Know the netizen post
Look at the luxury purchasing power of countless people with annual incomes below 300w.
If you take the annual income of 300w to calculate, these people are the level of business executives we are exposed to in our daily lives, in addition to family, cost of living, their annual luxury goods are roughly estimated at about 30w. In fact, these money looks a lot, but you can only buy some normal seasonal ready-to-wear line items, the following set of spring and summer looks, buy two sets of this money is gone.
And the furniture and jewelry categories that can really bring profits to big brands dare not be considered, and as for the high frequency, it is impossible to think, which is indeed a big gap with the purchasing power of high-net-worth people.
Not to mention that there are very few people who can reach an annual salary of 300w, and ordinary people actually have a very strong annual salary of 30w; in this range, the luxury budget is only a few bags of budgets every year, and most of the bags they buy are big hits that the brand does not worry about selling at all. To be realistic, it is necessary to grit your teeth and save money for face.
Looking at it this way, you will find that the sales of these big brands and top luxury groups are supported by rich people and local tycoons, and the contribution of ordinary people is basically a dime, which is not difficult to understand why LVMH decided to vigorously strengthen the positioning of high-end products in the follow-up, because they want to retain this group of people by continuously improving the pricing and quality of luxury goods, while the other group of people will be directly screened out.
The third point of the LVMH Executive Meeting
Why is it screened out?
That's because the future wave of luxury price increases will become more and more frequent, and the price increase will be higher and higher. Driven by this, future packages will only become more expensive. (You're afraid you won't be able to afford a bag!) ）
For example, CHANEL, which is already approaching the high-end group, only needs 3w to buy a CF three years ago, and now you have to spend twice as much.
There is also LV, which has raised its price 6 times in three years, and it is likely that under further price increase measures, LV basic handbags will bid farewell to the 1w era and enter the era of 2w+ or even higher.
Taking lv entry-level Neverfull medium as an example, three years ago, it only cost 1w yuan to start this bag, and now it is close to 1.5w, which is 4400 yuan before and after.
If this increase is followed by the impact of the brand's high-end positioning, the price of LV Neverfull will officially break through 2w in a few years.
By analogy, the price of his family's other basic models will further double, towards 2w blocks.
This point is not a figment, you may not have noticed, because LV currently has a high increase in the classic model has soared to 2w+, which is a strong contrast with the initial relatively easy to buy 10,000 yuan price.
And these are just the basics, like the LV expensive package class representative Capucines who soared 9500 in a single way in February this year is likely to be close to 7w+, to put it bluntly, its positioning for LV is equivalent to CF to Chanel and Birkin to Hermès.
In the same way, the price increase strategy used to enhance the high-end positioning is the same on CELINE, which belongs to the LVMH Group, which is still relatively low in price.
At that time, CELINE basic handbags will gradually increase prices into the 1.5w+ era.
After all, the Triomphe handbag has been demonstrated, from the 2w+ when it was just born, it has successfully stepped into the 3w+ club, and it is estimated that sooner or later 4w.
And CELINE is now planning ahead has begun to move, just a few days ago launched its own haute couture maloquinerie series of handbags, the official said very clearly for the rich. Each of these handbags is made in a single piece, and it is said that it takes 12 hours to make a Triomphe handbag.
With the overall rise in the price of the basic model, this means that the threshold for buying luxury brands has been raised later, and not only the brands of the LVMH Group will enter the high-price stage, and the resulting inner volume must not be thought of, and Gucci, Saint Laurent and other brands on the Kering side will also enter the 2w+ stage.
Once the big names fully roll up the brand positioning higher and higher, this move has a great impact on ordinary people, it is likely to mean that the previous 1w piece can still buy some big brand entry models, the next 1w piece is basically to buy some small leather goods, buy door handbags, and gradually move closer to 2w+. It can be seen that there will inevitably be a considerable number of people who cannot afford to buy bags.
In the end, luxury is a luxury after all, and improving the high-end positioning of the brand is also an imperative means for luxury brands, which is also in response to that sentence, the speed at which you save money to buy bags can never keep up with the speed of the price increase of handbags.
If one day, it takes 2w+ to buy a Neverfull, will you still buy a bag? What are your thoughts in the face of increasingly expensive handbags?
This article was edited: RUK
Art Editor: Beanie
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