Luxury goods are LV and Prada.

Due to the decline in mainland China's turnover, Jean-Jacques Guiony, chief financial officer of LVMH group, said in a conference call: "taking into account the price issue, the company will shift its focus from mainland China to other regions such as Japan and Europe, which are more likely to benefit from these two markets."

At the same time, LVMH also joined other luxury goods groups to renegotiate the rental price with Hongkong owners.

In addition to closing some of the physical stores, luxury brands are adjusting their strategic priorities in China.

A major trend is that with the same store selling pressure (the average sales of many luxury brands in the same store in 2014 declined by 5%-6%), the traditional luxury brands are relatively conservative in the expansion of new stores, and the brands adopt stricter store selection criteria, focusing on opening or refurbishing the larger flagship stores, while closing the smaller ones in the low tier cities.

"

Bruno Lan said.

"We have slowed down the expansion of new stores, and are now decorating and closing many stores and shifting their focus from the three line market.

"

A luxury brand executive said.

Another trend is that luxury shopping centers pay more attention to the concept of lifestyle consumption.

In order to cope with the increasing competition pressure of the electricity supplier and the declining trend of the Luxury Retailing industry, the entity shopping center has provided more stores related to the consumption of life.

She thought,

It will synchronize different types of brands that are more accessible to consumers.

For example, Gucci recently opened a restaurant in Shanghai, and LV opened a new store in West Lake scenic spot in Hangzhou. "The original traditional shop form is hard to attract more consumers. Luxury brands are using the restaurants, hotels, scenic spots and other ways to reach consumers."

"Under the influence of the electricity supplier, luxury brands must consider the adjustment of online and offline channels, including the adjustment of the most price system and retail mode," Zhou Ting said. "Now is not the era of winning more stores, so some luxury brands are replacing the original stores through new sales channels.