Lei Jun's sunscreen clothing and Paris's LV, which one is really "relaxed"?

It's all the same as a billionaire

Text/He Yiran

Editor/Liu Yuxiang

The content and presentation effect of the opening ceremony of the Paris Olympic Games will be evaluated by those who have watched it.

Before the Games, in order to meet the requirements of the Paris Olympic Organizing Committee, the IOC also specially amended the Olympic Charter, changing the expression that the opening ceremony of the Olympic Games must be held at the "Olympic stadium" to "the venue of the opening ceremony".

As a result, the whole of Paris became the "venue for the opening ceremony". In a way, as the "romantic capital" of the world, a world-famous tourist destination, the city of Paris is even more well-known and attractive than the Olympic Games. Perhaps because of this confidence, France does not seem to want to be a host who "pleases" guests, but more like "standing" to use the Olympics to create a wave of revenue for Paris and France.

In addition to the controversial content, the biggest gimmick of the opening ceremony short film is that it shows that the customized medals of the Olympic Games are put into LV boxes after they are produced. LV's presence is even higher than the medal, and the CCTV commentary had to use "factory" to depict this scene in order to avoid advertising.

In the opening performance across the city of Paris, LV's iconic logo was interspersed with various scenes, and LV's boxes were more eye-catching as props than the dancers' movements, no wonder social networks were full of ridicule that "LV released a new season of advertising and promotional videos for the Olympic Games".

Before the opening ceremony, the eldest son of the LVMH family swore that the opening ceremony would be an intuitive and comprehensive presentation of LV manufacturing.

It would be a mistake to think that the Parisians were "rotten" because of the effect of the opening ceremony. This kind of high-minded culture and value output is similar to luxury marketing, that is: I define what is beautiful and what is good, and you just pay for it.

01

From the very beginning of the bid, Paris shouted the slogan "Made for Sharing", using the gimmick of hosting the second time in 100 years to "fool" the right to host the Olympic Games. Officially, culture is at the heart of the Paris Olympics, and it is necessary to combine sports and culture to promote cultural diversity and cultural integration.

Throughout the preparatory period for the Olympic Games, the Paris Organising Committee of the Olympic Games has been taking a high profile in the spirit of environmental protection, emphasizing that it is necessary to respond to the Paris climate contract to hold an Olympic Games with the lowest carbon emissions, so all facilities and services will be simplified.

95% of the venues of the Paris Olympic Games are renovated or temporary venues, and many historical landmarks, including the Eiffel Tower, the Louvre, and the Arc de Triomphe, have become the "backdrops" of the temporary venues. It can be said that the Olympic events have become an embellishment of the Parisian cityscape, and the broadcast camera captures the athletes while showing the world the cityscape of this romantic capital.

In order to show off France's characteristics, the Paris Olympic Organising Committee made the torch relay very different.

Hooded, cloak and face-covering "mysterious figures" carry the Olympic torch from one building to another in Paris. Those familiar with the game will know that the masked torchbearer is based on the protagonist of the Assassin's Creed series of games, and the producer of the game is Ubisoft Games, which is a France company.

Founded in 1986 and headquartered in Rennes, France, Ubisoft Game Software (now known as Ubisoft Entertainment, formerly Ubisoft) has 23 game development studios around the world. In the aftermath of the Notre Dame Cathedral fire, Ubisoft announced that it had donated reference drawings and models of Notre Dame Cathedral that the game designers had entered to develop the game, to help with the restoration work.

Although Ubisoft is not an official sponsor of the Olympic Games, the Paris Olympic Committee has integrated Ubisoft and the city of Paris with a cultural element in the opening ceremony.

A Ubisoft spokesperson excitedly said: "We are very proud to see Assassin's Creed as one of the inspirations for the creators, a true testament to the impact that video games have had on pop culture. ”

After this wave of performances at the Olympics, Assassin's Creed managed to break the circle.

France look for details that can be used to show space for their own enterprises, but as for how to receive guests from afar, it seems very casual, and it can even be said that "what I give you, you use; Whatever I give you, you eat."

Not only are the athletes' dormitories all made of recyclable materials and cardboard beds, but the official canteen meals are environmentally friendly, and even the United Kingdom, which is often criticized for its food culture, dislikes it. In the hot weather, the athletes' dormitories are not equipped with air conditioning, and the delegations of various countries need to rent and install them at their own expense.

According to media reports, the average price of a hotel in Paris during the Olympics rose from 317 euros to 1,033 euros, an increase of more than 200%. For the first time in seven years, the Louvre has adjusted ticket prices, with general admission rising from €17 to €22.

But this "negative news" doesn't stop global tourists from flocking to Paris. On the field, in addition to athletes and entertainment stars, the most concerned are probably celebrities and wealthy businessmen. Musk, the former richest man in the world, Lee Jae-yong, the richest man in Korea, Ambani, the richest man in India, Liu Qiangdong's family, Yang Lan Wu Zheng and his wife, Wang Shitian Park Jun and his wife all appeared in Paris.

There is also Lei Jun, whose products have close cooperation with the Olympic Games, "Director Lei" directly brought goods in the live broadcast in Paris, wearing a pink sunscreen suit and drinking coffee, creating a wave of traffic, and also set a small goal in the live broadcast: "Strive to sell Xiaomi cars in Europe before 2030." "

Other wealthy businessmen attended the Olympics to watch the competition, only "Director Lei" was on a business trip, and the "model worker in the science and technology circle" was practical.

02

But in the Olympics, the most dazzling commercial protagonist can only be LV. The Paris Olympics are probably the most luxurious of the tournaments.

In 2023, LVMH announced that it would become the largest sponsor of the Paris Olympics with 150 million euros, and several of its brands participated in the design of the Olympic Games, Chaumet used recycled materials to design and build medals for the event, Bellutti designed the opening ceremony costumes for the France team, LVMH made unisex uniforms for volunteers, and the medal base was also specially created by LV, covered with LV's famous checkered Damier canvas since 1888, and matte black leather inside.

The Paris Olympics became an "exclusive show" for the LVMH group.

Currently, the top three companies in France by market capitalization are all from the luxury and fashion sectors, followed by Louis Vuitton, L'Oréal and Hermès.

As can be seen from the opening ceremony program, at least from the perspective of the director of the opening ceremony, the most worthy culture in France is not the scientific culture created by Descartes, Galois, Fourier, Lavoisier, etc., nor the industrial culture created by Dassault, Airbus, etc., but literary culture, or literary and artistic concepts.

Whether you recognize it or not, like those diverse cultures and ideas, but people just have the confidence to output.

This self-confidence stems from Parisian self-confidence, or "arrogance", but also from business. After all, France has proposed a "post-industrial social model" since the 70s of the last century, outsourcing low-value-added industrial links, retaining high-value-added industrial links, and emphasizing the core position of the service industry and creative industries (including the luxury industry), and the service industry and creative industry need to be supported by the right to speak.

In short, low-cost services and luxury goods can be sold at high prices because they have the right to speak and define what is right, beautiful and good, so that consumers are willing to pay money and pay a premium beyond the cost of materials, and consumers get not only goods, but also a greater "sense of satisfaction" built by the right to speak.

As we all know, the biggest cost of a luxury brand is marketing rather than materials, and the key to the longevity of a brand is to build itself into a identity symbol, establish an identity with the target consumer, and work key points such as "differentiation" and "spiritual satisfaction".

Selling art, luxury, and romantic lifestyles has become the way for France companies that operate services and creative industries. The more avant-garde and avant-garde it is, the more eye-catching it is and the more "high-end" it is.

The France are indeed good at creating the concept of "luxury", and "Made in France" has been a status symbol for more than a hundred years. According to Bain & Company, 130 of the world's 270 luxury brands originate in France.

"Those highest-end product lines are in the highest demand globally." LVMH CEO Bernard · Arnault describes the global appeal of luxury goods.

According to France's official statistics, the luxury goods industry accounts for only 1.7% of France's GDP, but it is the biggest sign of France's export economy. In 2022, France's luxury exports reached 70 billion euros, an increase of 18% year-on-year, with LVMH alone accounting for 11 billion euros in exports and paying more than 4.5 billion euros in taxes every year.

03

Although there is a lot of attention at the Olympics, in fact, the life of the luxury "aristocracy" is not easy.

On July 23, LVMH released its financial results for the first half of 2024. During the reporting period, the Group's sales revenue was 41.7 billion euros, a year-on-year decrease of 1%; Net profit was 7.3 billion euros, down 14% year-on-year and below analysts' expectations.

Heading into 2024, LVMH delivered two consecutive quarters of lower-than-expected organic growth, with a further slowdown in the second quarter. LVMH's stock price has fallen by 23% in the past year, and the net worth of boss Arnault has evaporated by more than $20.4 billion this year.

Objectively speaking, the absolute size of luxury consumers has become smaller in the past two years. In the face of an uncertain economic environment, the middle class, which had gritted their teeth and bought big brands, no longer dared to consume boldly, and the main force of luxury consumption returned to high-net-worth individuals.

According to LVMH's official analysis, the buying behavior of high-end products and mid-to-high-end customers is relatively stable, mitigating the impact of weak sales of low-end products. Therefore, LVMH has raised the price of its products ten times in three years, after all, people who are still willing to spend money are confident to spend money, and the price increase can further stimulate users' desire to buy quickly. As an analogy, Hermès, which is positioned at the higher end of the spectrum, is also abandoning mass consumers who buy entry-level products such as silk scarves and focusing on the wealthy.

The price increase has had a positive response, with an operating margin of 38.8% among the few strong figures in LVMH's financial report.

Although in Paris, according to statistics, LVMH mentioned the "Chinese market" and "Chinese consumers" as many as 76 times in the earnings call, which is enough to demonstrate the special weight of the Chinese market.

In 2023, LVMH said that it would accelerate its deployment in the Chinese market and open more stores to improve its performance. LVMH revealed that its Maison's stores in the Chinese market are extremely efficient. Due to the impact of the new crown epidemic, the number of Chinese tourists traveling overseas has dropped significantly in previous years, and many consumers who originally purchased overseas have returned to the Chinese market.

Entering 2024, the situation has reversed significantly. Regionally, sales in Asia (excluding Japan) fell 14 percent, while sales in Japan surged 57 percent year-on-year. Due to exchange rates, the price of the same LV product in Japan and Europe this year is much lower than that of mainland stores, and LV's core consumer groups in China and overseas travel consumers are highly overlapping, and incidental purchases during travel have become the mainstream.

LVMH's CFO said: "We see a lot of Chinese tourists going to Japan, which basically shows that the interest of mainland tourists in our brand shows no signs of abating. Globally, the number of Chinese consumers has maintained a single-digit year-on-year growth.

Recently, WeChat pushed the "LV Official Boutique" mini program to me, where you can buy LV bags, clothing, jewelry, watches and other goods, and the main focus is "Come and buy".

In order to make money, the high-flying LV is also fighting. not only spent a huge amount of money to sponsor the Olympics, but also "deigned" to make a small program, in order to: although you can't afford it for the time being, you can afford it first.

Thanks to LV, I can see it, but I really can't afford it.

But this strategy is right. Compared with tennis, golf, F1 and other high-net-worth events, the audience of the Olympic Games is more popular. LVMH's ubiquitous presence in the Olympic arena is not for the sake of its existing consumer groups, but to deepen the awareness of the brand among non-target consumer groups at this stage.

Although the desire of middle-class consumers to buy has been suppressed for the time being, brands cannot really leave the attention of the crowd.

"Consumer response to marketing stimuli is significant, and companies that invest less in marketing are 'penalized,'" LV executives said. ”

In this age of traffic, the focus of attention is fleeting, and brands die if forgotten, and the same is true in the luxury industry, as evidenced by some brands that once stood alongside LV and are now unnoticed. No matter what people say about this opening ceremony, at least people remember it; It doesn't matter if you can afford LV or not, at least you remember it.

It's better to be controversial than to care, and the Paris Olympics have put France in the spotlight again, and France companies are looking forward to dividends.

In the end, I understand LV's good intentions, but I still feel that Director Lei's 39.9 yuan sunscreen clothing is more suitable for me, although it is cheap, but it is also a real "billionaire with the same style".