The challenge and opportunity of LV under the pandemic and its future sustainability strategy

Abstract

The novel Coronavirus pneumonia pandemic that began in early 2020 is still ongoing, resulting in great restrictions on international trade and heavy losses in the world economy. The shrinking income and rising unemployment rate have led to a serious decline in the market demand for luxury goods, and people's choice and pursuit of goods are more cost-effective and practical. In this era, the offline retail of luxury brands will inevitably be severely impacted. However, with the strong recovery of the luxury market in 2021, Especially in Chinese mainland, the luxury industry has unprecedented potential, so the luxury brands such as LV will usher in new challenges and opportunities. Even with the sudden outbreak of COVID-19 and the dismal sales of major brands in the past two years, LV has become one of the most resilient luxury brands under the pandemic by virtue of its brand image and marketing management. The measure it did in the post-pandemic era provides luxury brands with a reference. Therefore, the purpose of this study is the future prospects of the luxury industry and how LV will respond with this prospect, and also its future sustainable development under the pandemic. This paper analyses the future environment of the luxury industry in China and to provide some recommends to the transformation in various approaches to achieve sustainable development. The article will conduct a PEST analysis of the current luxury environment, and the port five-force analysis of the industry, aiming to explore and study the future development of luxury goods.