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interface news reporter | chen qirui

interface news editor | lou qiqin

after rounds of price increases, luxury brands still rely on basic styles.

french luxury brand louis vuitton recently launchedNEVERFULL INSIDE OUThandbag series. different from the past where only the surface material or pattern was changedNEVERFULLseries,NEVERFULL INSIDE OUTit has a brand new design, and the biggest selling point is that the inner lining can be turned out for use.——one side isMonogrampattern on one side and cowhide or striped fabric print on the other.

the price is naturally more expensive.NEVERFULLthe bag is priced at1.4810,000 yuan, medium size using cowhide leatherNEVERFULL INSIDE OUThandbags and medium size with fabric printNEVERFULL BANDOULIÈRE INSIDE OUTthe handbags are priced at2.2810,000 yuan and1.68ten thousand yuan.

compared with other new handbags launched by louis vuitton in recent years, this price is not high.

recently launched mediumLOW KEY CABASthe bag is priced at3.35ten thousand yuan, in2023the mainGO-14medium handbags reach5.2if the high price of these two handbags is due to the fact that leather is the dominant material, then the ones made of coated canvas areCARRYALLmedium handbags are now also sold2.28ten thousand yuan.

in the louis vuitton category,NEVERFULLas well asNEVERFULL INSIDE OUTthey are all women's handbags. similar things have already appeared in men's series.

menswear creative directorPharrell Williamsexist2023the first handbag he promoted after taking office in 2000 was theSpeedythis is one of louis vuitton's oldest products.SPEEDY BANDOULIÈRE 25the bag is priced at1.48ten thousand yuan, also plays the role of entry-level model.

andPharrell Williamsfirst, a model priced at100crocodile leather with diamonds worth $10,000Speedya series of handbags made of soft leatherSpeedyhandbags are being put on sale, including several priced at7a colorful limited edition priced at tens of thousands of yuan.

re-promoteSpeedythe bag's creation received a lot of exposure, thanks to a pop-up installation andRihannaalthough the brand has appeared in advertisements, the main reason may still be that consumers are surprised by the sudden upgrade of the positioning of this entry-level handbag.

in comparison, until2007born inNEVERFULLnoSpeedyalthough it has such a long history, it has become one of louis vuitton's most classic handbags. the regular model is priced at nearly 10,000 yuan, making it a popular choice for many consumers.“the first luxury item in life”according to second-hand e-commerceRebagreports2023the most valuable handbag of louis vuitton in 2018 isNEVERFULL, the second-hand price is the original price1.36times.

in the past, louis vuitton oftenNEVERFULLhandbags“refurbishment”, will launch styles using limited fabrics or appearances at special times.NEVERFULL INSIDE OUTalthough it follows the traditional silhouette, it is already a brand new series in terms of materials and design details.

the logic behind the global expansion of luxury brands is to export high-end lifestyle values ​​through a large number of fashion shows, flash events and advertisements, and to use entry-level handbags priced at around 10,000 yuan and even lower-priced perfumes and cosmetics to lure middle-class consumers to buy, thereby satisfying their needs to enjoy and display a specific lifestyle.

TwistandCapucinessuch handbags play the role of lifting the positioning, and the former is also responsible for louis vuitton's escape fromMonogramthe latter is no longer displayed on the official website.“heritage”。NEVERFULLthe handbags are too popular and too entry-level, so marketing and promotion have not been the focus in recent years.

however, the entire luxury goods industry is facing challenges.LVMHthe group2024sales revenue in the first half of the year fell year-on-year1%to416.77100 million euros, with a decline in the fashion and leather goods sector2%kering's performance was even worse, with revenue declining11%to90100 million euros, operating profit fell42%to15.8100 million euros, estimated2024there will still be30%decline.

benefiting from the return of overseas consumption to the chinese market during the epidemic, as well as retaliatory consumption in the european and american markets after the local social operations returned to normal, luxury brands have frequently raised prices in the past few years. high costs and high inflation are common reasons. when the industry began to cool down, the solution of luxury brands was still to raise prices.

however, luxury brands are still able to achieve global expansion by relying on middle-class consumers. the number of people in this group is simply too large. no matter how high the repurchase rate of high-net-worth individuals is, it cannot make up for the impact of the collapse of the middle-class market. now it is time for luxury brands to readjust their operating ideas.

the wall street journal cited consulting firmBernsteinthe data show thatBurberryandSaint Laurentthe prices of some products have already been lowered.Burberrynew ceoJoshua Schulmanrecently, it directly admitted that the brand was once priced too high, which made consumers confused about its image.

back to louis vuitton, we can see that this timeNEVERFULLthe launch of a new series of handbags, and2023yearly bonusSpeedythe strategy for handbags is different.Speedythe purpose of handbags is to elevate the image, using extremely luxurious new models to attract more consumers to buy entry-level models, whileNEVERFULL INSIDE OUTthe obvious attempt is to build appeal through a newer but less expensive entry-level model.

when the limited edition is sold at a price of one millionSpeedywhen handbags are bought and carried by high-net-worth individuals or celebrities, their mediocre image can be enhanced and attract the attention of middle-class audiences. now, louis vuitton wants to skip this dream-making process and directly provide consumers with more entry-level styles to choose from.

as second-tier luxury brands have begun to collectively cut prices, louis vuitton, which claims to never offer discounts, does not enter outlet channels, and has adjusted prices several times in the past few years, can be seen as a compromise to the current market environment. louis vuitton is not the only brand to do so. gucci’s chief financial officerArmelle Poulouit also stated in the earnings conference that it will launch a wider range of products with balanced prices in the future to balance the needs of different customer groups.