Home >

Foreign Brand Luxury Goods Sales In China Are Slow To Avoid Corruption.

2013/6/24 18:45:00 27

??? 日本語 Fran?ais English 中文

only six months ago, the major luxury brands celebrated the amazing achievements made in mainland China in 2012.

However, with the disclosure of a quarterly report, the number of faces has made them dare not to underestimate the anti-corruption efforts of the Chinese government.

according to the World Luxury Association's report on China's first quarter luxury market, before 2013, the gift market accounted for 72% of the total sales of luxury goods in China.

The appearance of China's "Uncle" has prevented officials from avoiding luxury goods.

The direct expression of "P >" is a quarterly report of luxury brands, which has been haunting. It has become an Arabian tale to maintain the rapid growth of two digit numbers before.

According to a new study by the world's top luxury experts, global luxury sales growth is expected to be 50% lower this year than in 2012.

The main reason lies in China.

at present, the main international luxury brands have released the first quarter earnings in 2013. The performance of the digits of the luxury goods giant LVMH group and Kering group has not reached expectations. Although Hermes has barely reached double digits in the first quarter, it has also hit the lowest level since 2009.

although the three largest luxury goods group, only the peak group is slightly higher than the market expectations, but this is mainly attributed to its jewelry department, fashion accessories Department 38 million Swiss franc's loss once again brought it back to the level after the financial crisis.

Coincidentally, LV, Prada, Ferragamo, Boboli, Gucci and other gift brands of choice have also lost the aura of rapid growth.

under the pressure test of China's anti-corruption storm, who can still be strong and stand up to the wind and snow may be able to get a glimpse of it from a quarterly report.

LV, Gucci decline /p >

as the first batch of luxury brands entering China, LV and Gucci have enlightened China's luxury consumer market.

But due to excessive expansion, the brand value has been reduced, and it has been abandoned by high-end consumers and become a popular luxury brand.

, therefore, in this anti-corruption storm, LV and Gucci are the first ones to bear the brunt.

These two brands are the pillars of the two luxury group LVMH and Kering, and they are also the two deadly rivals. They are now a pair of brothers in distress.

according to the latest quarterly results released by the LVMH group in the first quarter of 2013, sales in the quarter were 6 billion 950 million euros, an increase of 6% over the same period last year, and the increase was far less than 25% in the same period last year.

Among them, jewelry and watch department performance is particularly weak, sales performance fell 1%, to 624 million euros, the same period last year, the Department's year-on-year growth rate of 141%, far more than other sectors.

Worse than P, the first quarter sales of LVMH's main sectors, fashion and leather goods, increased by 0.4% to 2 billion 380 million euros, the lowest in 2008 since the financial crisis. In the first quarter of last year, the sector's performance increased 17% over the same period last year.

Behind the P recession, the impact of the Chinese market can not be underestimated.

By the end of 2012, Asian markets other than the Japanese market accounted for 28% of LVMH group's total revenue and became the world's largest market.

But this year, the Asian luxury market, led by China, has significantly slowed down.

LVMH group leather goods near zero growth performance, for leather based LV is undoubtedly a heavy blow.

The huge expansion of the Chinese market has made LV go down the altar of luxury and become a popular fashion brand.

The days of Gucci are also not good.

According to the latest quarterly earnings report released by Kering (formerly PPR) group, Gucci's performance has slowed down significantly, and revenue has increased by 2.1% to 865 million 900 thousand euros.

Although Gucci claims to have "high single digit" growth in the mainland market, it is no longer comparable to the double-digit growth rate of the year.

especially with the past of the luxury logo era and the upgrading of consumer level, conspicuous consumption is outdated.

Luxury brands such as LV and Gucci, which are famous for their trademark logo, are under greater pressure.

Arnott, a smart P, has realized the crisis of LV in China. So she announced a few months ago to adjust the development strategy of LV, suspend the opening of new stores, but make a big fuss about store upgrading and product upgrading.

from the store level, on the one hand, LV postpone the opening of new stores; on the other hand, a large number of refurbishment or expansion of existing stores.

Especially in July 2012, the first flagship store of Louis Vuitton [micro-blog] was set up in Hang Lung Plaza, Shanghai, and the first high-grade leather product was moved to Shanghai for the first time.

from the product point of view, the new leather bag of the new season of LV has changed to the classical LV pattern design of the past, turning to the bright and fashionable design direction.

Most importantly, the new season's purse product deliberately hides LV's big logo, subverts the individuality of LV's publicity, and makes the pop star Fan Bingbing as a new spokesperson, trying to save the Chinese market.

Gucci has already tasted the sweetness of logo, and its early autumn products have not seen the "double G" logo.

According to Kering's latest earnings report, leather goods category of Gucci has benefited from the launch of new products, and sales of logo leather goods have seen double-digit growth.

"P" is similar to LV, and Gucci has also slowed the pace of opening, but this year it will still open new stores in mainland China and restructure existing stores and now have 56 straight stores in 34 cities in China.

but in strategic planning, Gucci senior executives interviewed by foreign media said that splitting the product is the key to future strategy and will meet different consumer expectations with different product lines.

In China, Gucci is no longer pursuing expansion simply, but at the same time establishing many different models.

On the one hand, Logo is still a brand banner with a strong appeal. On the other hand, products need to become more personalized, mature and have a better consumption experience.

The introduction of more p lines seems to be the direction for Gucci to make up the short board through the rapid integration of the industrial chain.

Recently, Gucci Timepieces&Jewelry acquired the Fabbrica Quadranti watch manufacturer in Switzerland, indicating that Gucci will expand its watch business in an all-round way.

In addition, Gucci also works with TNT Express Italy, a logistics company, to launch the high street series a href= http://www.91se91.com/ target= "_blank" > clothing "/a", and pport the clothing directly from the warehouse to the store by means of the rapid logistics of the TNT.

Bo Bo Li, Tiffany performance fluctuation /p >

in the downturn of the luxury goods industry, the development strategy of Boboli is relatively radical compared with other brands' postponed expansion.

It also makes its performance like a boat in the storm.

according to the data released by Bob Li in April 17th, the total revenue of the group in the six months ended March 31, 2013 was 1 billion 116 million pounds, an increase of 9% in real terms.

But compared with the 18% growth rate in the same period last year, it dropped by 50%.

In particular, as the world's largest sales market in the Asia Pacific region, its growth rate slowed from the previous 34% to 15% today.

Even P, Asia Pacific still leads group growth.

Although the group claims that the performance of jackets and men's products is particularly excellent, the weakness of the main stores is the primary problem Bob Bailey.

it is gratifying to see that Boboli, which has been developing online business very well, has a strong performance in e-commerce business.

CEO Angela Ahrendts said that in the future, bobury will focus on developing digital platforms and the potential of newly integrated perfume and beauty businesses.

"P > online store expansion, Boboli's momentum is strong, plans in the next year to March 2014 year, add 25 stores and close 15 of the original stores, new stores will be tilted to China and Latin America, currently the group has more than 60 stores in China.

the same performance is also unstable Tiffany, according to Tiffany released in the first quarter of April 30th as a whole, net sales grew 9% to 895 million dollars, net profit increased 3% to 84 million dollars.

The opening door of P 2013 has breathed a sigh of relief for the chairman and CEO Michael J. Kowalski. He owes his success to the successful marketing in the Blue Book dance and the movie "the great Gatsby", which is the usual practice of Tiffany, just like the movie Tiffany's breakfast.

but 2012 was indeed cold and pressing for Tiffany, and his performance was disappointing.

the net growth of net profit in the first two quarters of 2012 made Tiffany feel the crisis and lowered the overall expectation for the 2012 fiscal year.

But in the third quarter of 2012, Tiffany was forced to take a cool breath. According to Tiffany's third quarter earnings report, the net profit of Tiffany in the quarter was $63 million 180 thousand, a sharp decrease of 29.6% over the same period.

Such unsightly performance made Tiffany's net income drop 4% in 2012.

In the face of dismal performance, Tiffany began to adjust his strategy, P.

Kowalski said that in order to achieve a profit growth of 6% to 9% in fiscal year 2013, Tiffany plans to add new jewellery products, enhance communication with distributors through graphic and digital media, and expand the global store network.

To upgrade products and expand stores is the main strategy of Tiffany. In the past three years, Tiffany has been bringing forth new ideas in the field of high-end jewellery, and has expanded its influence by holding high-end jewellery exhibitions. P

On the expansion of stores, Tiffany is far behind its rival Cartire [micro-blog] from the Chinese market. Now Tiffany has started to work in China's two or three tier cities.

Saint Laurent grew fastest. Hermes Prada remained strong. /p >

in the first quarter of 2013, Saint Laurent took the lead in the growth rate of 16.9%, and even reversed the sudden rise of BV in recent years. In a quarterly report, the growth rate of BV was only 5%, far below the growth rate of 37.1% and 38.5% in the 2012 fiscal year fourth quarter and 2012 fiscal year.

according to the results of the financial report, Saint Laurent earned 127 million euros in the first quarter, an increase of 18.7% compared to the revenue, and the income of Saint Laurent42% came from Western Europe, North America and Asia Pacific region accounted for 20%, and Japan occupied 9%.

In the first quarter, there was a strong growth in other parts of North America, driven by men's clothing sales, and fashion and leather products increased significantly.

As of the first quarter, Saint Laurent has operated 98 direct outlets, with a net increase of 9 stores in the quarter.

The rapid growth of Saint Laurent is partly due to the joining of creative director Hedi Slimane last year. He not only renamed the old luxury YSL as Saint Laurent, but also redesigned Saint Laurent Paris flagship store.

in store planning, Saint Laurent keeps the expansion of the new store on the one hand; on the other hand, restores the original storefront with the new retail store.

The good performance of the Kering group has high hopes for its mid term target of 1 billion euros per year by 2020.

Paul Deneve, President and chief executive officer of P Saint Laurent, said the brand will make huge investments in product development, manufacturing, supply chain and communication, while focusing on improving the technology and quality of each product category, but there is no plan to enter the field of advanced customization.

relative to the comprehensive reform of YSL, the old luxury Hermes and Prada although the growth rate slowed down, but a quarterly report is still strong, the growth rate is two digits.

although Hermes has always been the benchmark enterprise of luxury brands, it is inevitable that the growth rate will slow down in the "cold spell".

according to the first quarterly report issued by Hermes in 2013, its sales volume was 857 million euros, an increase of 12.8% over the same period last year, far less than 17.6% of the same period last year, of which the fastest growing rate in the Greater China region was 17%.

according to the category of goods, the increase of Hermes leather and harness category is 7%, even less than half of the 14.8% increase in the four quarter of 2012.

But sales of other product categories have achieved strong double-digit growth.

in the face of the cold winter, Hermes has not only slowed down shop opening speed, renovated and expanded the existing storefront, but also expanded production capacity and improved the industrial chain through acquisitions.

Recently, Hermes said its La Montre Herm s watch subsidiary increased its Joseph Erard Holding share to 51%, holding Joseph Erard Hold-ing.

In addition, Hermes also bought the Nat producer BER in 2012.

At the same time, at the same time, Hermes began to test the water electricity supplier. At the end of 2012, it launched 6 online sales, < a href= "http://www.91se91.com/" target= "_blank" > shoes "/a", in partnership with bazaar's e-commerce website. This is the first time Hermes has set foot in e-commerce outside its official website to break the curse of "not touching the net".

P also slowed down the pace of Prada, according to Prada's earnings report, as of the April 30th quarter, operating income of 782 million euros, an increase of 14.7% over the same period.

Compared with last year, the growth rate of a quarterly report continued to decline this year.

The main reason for the decline of P is the rapid decline in the Prada market in China, the largest market in the world. Quarterly results show that the net sales in the Asia Pacific region are 315 million euros, up 24.8% over the same period last year.

In the same period last year, the growth rate in the Asia Pacific region was as high as 46.9%, with the growth rate of 53.7% in the Greater China region.

This shows the power of China's anti-corruption storm.

CEO, less than P Prada, has said that this year it plans to open 70-80 new stores (10-12 in China). But in April, there were only 2 new businesses in the world and 1 doors closed.

Less than P, Salvatore Ferragamo also suffered the same fate. Its net profit in the first quarter of 2013 increased by 57% to 27 million euros, although it was a surprise. But the Asia Pacific region, which accounts for 36% of total revenue, is the largest market, with a growth rate of only 6.3%, which is significantly slower than that of 27% in the same period last year.

Ferragamo's response strategy is to strengthen the layout of the network in all directions. The offline channels not only sink to the two or three line cities, but also actively open up the airport tourism channels; online is actively cooperate with the electricity supplier, and has already worked with three electric business partners to break the geographical restrictions.

Unlike P, which has a lot of anti-corruption effects on veteran luxury goods, Coach, a luxury and luxury brand, is still in the Chinese market.

according to the latest quarterly report released by Coach, the profit growth of 6% is US $239 million, exceeding the market expectation, thanks to the growth of sales volume in North American and overseas markets, especially in the Chinese market with a sales growth of 40%.

In the favorable market situation, Coach began to expand the product line, ready to launch footwear products, but the industry is not optimistic about this development strategy.