To solve the problems caused by consumer loss and sales decline

To solve the problems caused by consumer loss and sales decline, there are several possible ways that can be taken into consideration. The most direct way is to lower the prices. However, this solution is controversial since LV, as a luxury brand, is doubted whether it should go counter to its luxury concept to stimulate the purchases. Although LV can maintain its profits by reducing the costs at the same time, it still seems not to be a wise decision to do so since people will not buy the luxury products only for the reducing prices when they do not have enough purchasing power. Therefore, the cost reduction can not be considerate as an effective solution. However, LV still has the chance to survive in the financial crisis by developing new market in the 2nd or 3rd tier cities. The reason is that these cities may have little influence from the financial crisis and thus people may keep the curiosity of LV.