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“Logo fatigue” in China Hurts Louis Vuitton, Gucci

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A recent Bloomberg article reported that “logo fatigue” in China has caused a significant decline in sales for luxury brands like Louis Vuitton, Gucci and Burberry. Before, these companies could count on Chinese consumers to drop thousands of US dollars on bags just for the value of their logo. The situation has changed.

Fflur Roberts, global luxury manager at Euromonitor, said: “The Chinese are becoming much more sophisticated about the products that they buy… It’s not just about the bling aspect.”

It seems like companies’ effort to introduce more upscale products (Gucci’s $4,100 python shoulder bag and Burberry’s $9,700 alligator clutch) is not the answer. Chinese consumers seem to seek more distinctive alternatives (Prada, Hermès, Yves Saint Laurent and Bottega Venetta) or less pricey brands that offer more value for their money (e.g., Coach).

Author Andrew Roberts points out that Vuitton, Gucci and Omega are suffering because of their early entry into the Chinese market and the over-saturation of their luxury products. Will there be a way for these brands to revive their exclusivity?


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