A Study on the Utilization of Fan Economy by Luxury Brands in Chinese Market—Taking Louis Vuitton as an example

Abstract

Fan economics generally refers to business practices that generate revenue based on fan-fan relationships. It is a business operating model that increases user engagement and achieves economic and social benefits in the form of word-of-mouth marketing. In the past, the fans were mostly celebrities, idols, and industry celebrities. For example, fans of the music world buy albums, concert tickets, products that celebrities like or approve. Today, the Internet has exceeded the limits of time and space, and the fan economy is widely used in many fields, such as culture and entertainment, sales of goods, and service provision. With the help of a certain platform, merchants gather a circle of friends and fans through a certain point of interest and provide fans with diversified and personalized products and services, which are finally converted into consumption and profitable. Louis Vuitton is a luxury brand owned by the luxury goods company LVMH. It was founded by Louis Vuitton in France in 1854. Its products mainly include handbags, travel goods, small leather goods, accessories, watches, fine jewelry and customized services. With The rise and frenzy of the fan economy in the Chinese market, and the marketing status of this brand in the Chinese market is also being objectively affected. The purpose of this paper is to take Louis Vuitton as a case study to analyze the status, characteristics, problems and Solutions to related problems.