Why Luxury shoppers in China are pushing for Louis Vuitton Burberry

  One day after Louis Vuitton has fears that China rich shook the purse lifted Burberry achieved better than just because of the greater demand for luxury in China and Hong Kong expected quarterly revenue.

The different fates of these two heavyweights of luxury in the country not only to the continued health of luxury consumption in China, which we reported. It also highlights some of the ways that the market is now more important increasingly complex world of Chinese luxury.

The parent company, LVMH Louis Vuitton reported 15 A lower than April due to weak sales in China in the first three months of expected profit. Analysts cited as empty commercial factors Luxury China, an austerity campaign of the government of the elites, who beat the booze and luxury Swiss watches, and slowing the growth of the luxury market. But in the same environment, sales of Burberry in Asia increased 16%, supported by a double-digit growth in China over the same period, the company said in an earnings call today.

The difference is the new, and the fact that the Chinese big spenders more unique brands and do not want exclusive. Burberry for the first time in China only in 2010, LV has sold in the country for over 20 years. Burberry is now not as overexposed as LV, Avery Booker, vice president of marketing at Bomoda.com, a bulletin of the Chinese fashion. Get LVMH executives. In January, the company said it would not open stores in the second and third tier cities, "to prevent too common." It has also increased the price (paywall).

But this strategy can also be a segment may be important to Chinese luxury buyers. Unlike LV Burberry plans to 100 stores in the country to open over the next four years in an attempt to reach more potential buyers. The buyers are there easy money Creek € 15,000 ($ 19.500 or 120,800 RMB) to € € 75,000 per year, most of the future growth of the Chinese luxury market, Exane BNP Paribas estimates should lead.

Connecting with Chinese customers something different that's Slowly LV Burberry on. Since many Chinese consumers research online before buying luxury and follow the recommendations of people they follow on Chinese social media such as Sina Weibo and WeChat, online coverage is essential. Burberry is on four Chinese social media sites with over 400,000 fans on Weibo. In this year's ranking of the luxury brands in China according to their digital IQ Burberry beat the LV relies more on exhibitions in China, for the first place. "Burberry has always been a much better job than LV connect with Chinese consumers online," Booker said.