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Chinese shoppers scorn Louis Vuitton and Gucci as too common
Both have experienced "significant drops in samestore sales" in Beijing and Shanghai as customers seek out more exclusive names, such as Balenciaga or Celine, according to a report by the broker CA Cheuvreux.
The two were among the first European luxury brands to enter China in the 1990s and have achieved dazzling success, with Louis Vuitton selling about $US1.6 billion ($1.57 billion) of goods in Greater China last year.
"Consumers' tastes are changing and Louis Vuitton is viewed less and less as an exclusive brand," Thomas Mesmin wrote in the report, adding that the brand had "overpenetrated in China".
Shaun Rein, managing director of the China Market Research Group in Shanghai, said: "The very wealthy we talk to no longer want Louis Vuitton because it is too common. They are interested in Chanel, Hermes and Bottega Veneta."
Vuitton was a monster it was so much bigger than all the others so it has farther to fall, he added.
Zhang Ting, a television reporter in Shanghai, said that the spread of counterfeits made the company seem cheap.
"Louis Vuitton is one of the most recognised brands here for fake luxury goods and can often be seen used by grannies at wet markets or young office girls who can't afford to buy a real bag,[url=http://www.sport.fr/smartphones/moncler.asp]moncler homme[/url]," she said.