Hermes Worries: Fake Incident Seriously Compromises Consumer Confidence

In November, the price of luxury brands was whining, and only one "red carpet" was red. Herm s 。 Herm's s sales in the third quarter were 850 million euros, 15.7% higher than the fixed exchange rate, up 13.4% from the two quarter, while the other major luxury brands grew at a year-on-year low in the three quarter.

The good news raised the group's share price by 2%, and the rising trend of Hermes was apparently not affected by the European depression and China. Luxury goods The impact of the slowdown is too great.

　　 Asia Pacific contributes nearly half of its income

This year or break the 3 billion Europe mark.

According to the third quarter earnings report released by Herm s group, by the end of September 30, 2012, the group's total turnover reached 2 billion 440 million euros, and the total sales volume in the three quarter was 848 million 600 thousand euros, an increase of 24.2% over the same period, and sales increased in all regions.

The total sales in the third quarter increased by 36.1%. In general, Hermes was very outstanding in the Asia Pacific region, with sales of 409 million 500 thousand euros, and revenue grew 28.9% over the same period last year. It accounted for almost half of the three quarter sales, and China's growth was 27% over the same period last year.

According to the earnings report, it can be seen that the growth rate in Europe except France is slow, obviously affected by the European debt crisis. But the growth rate in France is still gratifying. Patrick Thomas, chief executive of Herm s group, attributed its contribution to tourists. He said that the group achieved a net sales growth in the third quarter of the world, especially tourists still keen to buy luxury goods in France.

According to its earnings report, the Asia Pacific region has the fastest growth in sales and the contribution of sales is almost half, so it seems that the consumption force of Herm s has shifted to the Asia Pacific region, especially China. According to a recent Chinese luxury report released by the Research Institute of wealth quality, consumers in the Asia Pacific region, except Japan, have become the main consumers of Herm s. Sales growth rate jumped from 16% in 2006 to 28% in 2011, while in the first half of 2012, it reached an alarming 35%.

In the face of such stunning results, Herm & s group also revised its annual sales forecast value from 12% to 13%. Herm s2011's annual sales volume has reached a record of 2 billion 840 million euros, and is expected to reach US $3 billion 200 million this year, an increase of 13%. If that is achieved, it will be the first time that the company has exceeded 3 billion euros since its establishment. But at the same time, Patrick Thomas said that the annual sales growth will remain at around 10%, because only 200~250 people can be recruited every year to train new craftsmen.

It is learned that in order to expand China market In the next 5 years, Herm s Group intends to invest tens of millions of euros to build high-end Chinese brands. In addition, the company also plans to steadily increase the number of stores in China.

　　 When a horse is in the first place, it starts to slow down.

With the release of the three quarterly reports, compared with other luxury brands, the three quarter year-on-year growth has reached a new low in the year. Herm s is undoubtedly a "horse" leader.

The first thing to be left behind is the almost zero growth of Burberry[micro-blog. Recently, Burberry said in a statement that its store opened for more than a year, the third quarter sales increased zero in the 10 week ended September 8th, far below the same store sales growth of 6% in the two quarter. "We are not the only companies that have had such experience in the past few weeks," said Burberry chief financial officer.

Indeed, Prada subsequently emerged, and Prada's earnings report showed that its market share in China was 25% lower than its 12 month high. And the reports of brands such as Louis Vuitton [micro-blog] and Tiffany [micro-blog] show that the market share in China has also declined recently.

However, compared with the radical expansion of Burberry, the expansion speed of Herm s is obviously slower. As of 2011, there were 228 shops in the Herm s group. Although there were shops expansion every year, the overall growth rate of shops was decreasing year by year. At present, there are 17 stores and 2 Duty free shops in China. In 2012, the Hermes group planned to open 3 new stores and renovate the existing 12 stores.

　 Hidden dangers

However, Zhou Ting, President of the Institute of wealth and quality, expressed concern about the hidden danger of Herm s: "first, the fake incident caused by Herm s s this year has done too much harm to the consumers. It has seriously damaged the confidence of consumers. Second, compared with the large luxury group such as LVMH group, Herm development is slow, regardless of the speed of shop opening or the distribution of shops. For example, all of them are in Shanghai's Hang Lung. Maybe LVMH got the best position, and Herm s's position is relatively bad. Third, the problem faced by Herm s is the innovation barrier. In fact, Herm s has not done a very good job of innovation in the past years. Leather products have always been the classic ones, and they can not keep up with the current trend of luxury fashion. Fourth, Herm ace s's trump card product. Leatherwear Sales of products are decreasing, but scarves and accessories have been increased and welcomed by new consumers. "

Zhou Ting believes that compared with the strong Li Feng Group and PPR group, the development of Herm s is obviously lagging behind. In the fast developing Chinese market, the slow development of Hermes is equivalent to a retrogression.

"Herm s's activities in China are much smaller than LVMH in terms of strength or impact. And this year, its market activities are not very good, plus the blow of fake products, and there is no positive response, so Herm s has not done very well in public relations crisis and marketing." Zhou Ting told reporters.