The Hermes Sub Brand "Up And Down" Has No Profit In China For Four Years.

The brand idea of Herm s sub brand "Shangxia" is said to come from Chinese culture.

"Up and down" brands are not profitable.

Business news April 20th hearing recently, Western and domestic media have a lot of "up and down" stationed in Paris news.

The "up and down" future Paris space has been selected at Rue de S vres, but the whole design and preparation process is still very long. We have not set up the opening time for "up and down", so we will share it with you.

Sharing the Chinese culture, craft and design to the world, "up and down" will continue to work hard! - recently, Jiang Qionger, chief executive officer and art director of Shanghai and Shanghai, said in his own micro-blog.

In the wake of a wave of unrest, a French luxury goods manufacturer came out after the Chinese trademark was snatch.

Founded in four years of "up and down", Shanghai is the world's first retail outlet.

Statistics show that the brand is positioned as a traditional Chinese handicraft product. On its official website, it displays the ancient seats of the red sandalwood, the traditional bamboo seats, the thin porcelain bowls, the handwoven cashmere garments, and the jade and agate.

All elements have no boundaries with Hermes' existing brands, and they are only one of the traditional handicrafts.

"Up and down" chief executive officer and art director Jiang Qionger and chief executive Patrick Thomas in Paris before the interview stressed that "up and down" is independent of the brand of Hermes, with Chinese materials, Chinese design, Chinese handcraft and Chinese team and management, is made in one hundred percent China.

Hermes group has also publicly stated that it will open 19 "up and down" brand stores in China.

However, in the four years since its establishment, there has been no other store opening except the store in Shanghai.

Previously, the "up and down" brand has not announced its sales performance.

As early as last September, Patrick Thomas, the chief executive of Hermes, declined to disclose the sales data of the "up and down" brand, but he admitted that the brand was not profitable for a while and for some time to come, but stressed that its performance was "far beyond expectations".

Although he was not profitable, he thought, "this is not a loss, but an investment".

He explained that the group has been "constantly improving this project" and hoped to "strive for excellence".

Return to France, the main Chinese element

In February 7th, Hermes announced that at the end of this year, another "except Shanghai" will be opened in the street of Paris, France.

Ye Qizheng, editor in chief of the tidal wave network, said that Hermes has always retained the Chinese brand of "up and down" brand, except that a chief operating officer who took office last year is a foreigner, and other designers and staff members are Chinese, and its creativity and production are in the most traditional way of China.

Hermes is the first company to launch one hundred percent Chinese brands in the world luxury industry.

Generally speaking, luxury brands take the road of Sinicization through the acquisition of brands with Chinese characteristics. Only Hermes has made a Chinese brand from scratch.

Then why does a traditional luxury brand like China suffer from "acclimatization" in China? {page_break}

According to the insiders, the "up and down" brand in China is too much emphasis on traditional cultural symbols. This area does not have many advantages for the Hermes brand.

Unlike Hermes's traditional handicraft leather products in France, Chinese traditional cotton, porcelain, bamboo weaving and other crafts and products are famous for their origin and raw materials. Consumers are very particular about the collection of this kind of handicrafts. They do not emphasize only 2000 hours of production.

Moreover, some collectors are not sensitive enough to the emerging brands in the industry. They will have their own collection and procurement channels.

It is understood that the "bottom up" shop is the cheapest 480 yuan necktie, the most expensive is the 500 thousand red sandalwood double chair, many consumers look at this design is exquisite, products cover clothing, home furnishing, jewelry shop but feel "not bad".

world

Although the road of expansion in China has been greatly frustrated, the plan for the "up and down" brand to return to France and Paris to open shop is more optimistic by the industry.

The reason is that in recent years, clothing, jewelry, furniture and handicrafts with many Chinese elements are becoming more and more popular in the international market.

The attachment of Hermes brand to traditional handicrafts has long been recognized and sought after.

One is a luxury or craft with Chinese elements. One is the support of Hermes brand. The combination of the two will be the effect of 1+1>2.

In addition, because China has never had its own luxury brand, Hermes has built up a label for Chinese luxury products.

In order to make more Europeans love Chinese elements and recognize "upper and lower" brands.

Ouyang Kun believes that the relationship between Hermes and "up and down" is not well known to the public.

This time Hermes has set up the first retail store in Paris on the street, which is adjacent to the Hermes world flagship store. It is intended to emphasize the relationship between them.

To help the "upper and lower" brand enter the scope of European luxury consumer groups as soon as possible.

Seeing LV, GUCCI and CHANEL crazily crave China's luxury market, Patrick Thomas, the chief executive of Hermes, said, "we are not interested in some consumers. Consumers who like flashy and showy goods are not our target customers."

Founded four years ago, not yet profitable.

In the eyes of many entrepreneurs, this brand should be declared a failure.

But Hermes doesn't think so. They are thinking of running up and down as a long-term project.

This is indeed an ambitious big plan for Hermes.

Patrick Thomas explains, "up and down" is mainly sold in China, but brand display in Paris will enhance its brand value, especially for Chinese tourists coming to France to recognize this brand.

We hope to make it a good weapon to make up for the shortage of the company in the Chinese market.

Is this the red in the wall of the legendary wall?

It usually takes at least 5 to 10 years to build a luxury brand. Although the "up and down" is still in the breeding stage, we can only wait and see if consumers can finally accept and support like Hermes.