Luxury Brand Greater China Will Focus On Two Or Three Line Urban Expansion In The Future

< p > in the French luxury group LVMH (Lu Wei Ming Xuan) announced that leather products in Japan after the price increase, Salvatore Ferragamo SpA (MTA:SFER) Ferragamo is following the price increase.

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P Michele Norsa, chief executive of Ferragamo, said in a media interview in Milan fashion week that its brand will raise its price in the Japanese market in order to narrow the price gap due to the weakness of the yen and other markets, but has not disclosed the specific price increase.

At the same time, he also said the Japanese market began to recover because of the depreciation of the yen.

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< p > < strong > or hoping to raise the price strategy to maintain the brand value < /strong > < /p >

< p > according to a recent survey by McKinsey, the easing monetary policy implemented since Abe Shinzo took office as prime minister at the end of last year allowed the yen to depreciate rapidly against the US dollar and the yen depreciated rapidly.

Therefore, Japanese consumers who used to love luxury goods in Europe and the United States tend to spend at home.

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In the face of the depreciation of the yen, the luxury brand has been raising prices in a few months to ensure profits in the P.

Since February this year, with the LV's first bid for the highest unit price of the Japanese flagship store of 12%, against the weakness of the Japanese yen, Hai Rui Winston has raised the price of jewellery sold in the Japanese market without referring to the watch products, and Tiffany has followed the promotion of some commodity prices.

It is worth noticing that LV has announced another increase in price recently. It has implemented two price increases in Japan since the half year. However, the follow-up of Ferragamo also makes the industry think that the role of LV's vane will further affect the luxury brand developed by Japanese market, and more luxury brands will continue to raise prices in the future.

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< p > Xue Shengwen, senior researcher of China investment consulting group, believes that after the price increase of LV in Japan, other luxury goods will continue to raise prices, which is a direct means for luxury goods to deal with the depreciation of the Japanese yen.

After the increase in Japan, the possibility of other regions to raise the corresponding price is smaller.

For luxury goods, rising prices are more common, usually rising from one area and then spreading to other areas.

However, the Japanese luxury goods price increase is to avoid bigger losses in Japan and reduce the difference with other regions, which is essentially different from the general price increase.

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< p > but Zhou Ting, Dean of luxury goods experts and the Institute of wealth and quality research, is surprised that in the past, it was Gucci, not Ferragamo, who actively followed LV.

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< p > "Ferragamo seldom has a price raising strategy or a big move. It should be a signal to raise the price tag in the Japanese market."

Zhou Ting said that on the one hand, the brand may take account of exchange rate factors and cost factors; on the other hand, it should be based on the maintenance of brand value.

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< p > in Zhou Ting's view, aside from the positioning of Ferragamo in Europe and America, the brand is popular among women in the middle and upper class in Japan and Korea, especially in Korea. The most obvious manifestation is that the middle class and upper class women almost have Ferragamo's "a" target= "_blank" href= "http://www.91se91.com/" > shoes "/a".

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< p > Zhou Ting said that in addition to Japan and Korea, the brand has expanded rapidly from leather products - < a target= "_blank" href= "http://www.91se91.com/" to "dress less than /a" in recent years.

Nevertheless, it has to be said that the crisis that Ferragamo is facing, that is, fast fashion, will make the brand more and more close to the fashion field, adapt to the market and be accepted by the public.

Once such a trend is formed, it will force Ferragamo to maintain its brand value, and the strategy of raising prices is also a temporary solution. It can only play a short-term role in maintaining the brand.

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< p > < strong > Greater China will exert two or three lines of urban expansion in the future: < /strong > /p >

< p > at the beginning of this year, the 2012 earnings report of Ferragamo showed that in 2012, the group's net profit increased by 30%, and this good result continued to the first quarter of 2013.

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< p > the net profit of Ferragamo increased by 57% to 27 million euros in the first quarter of March 31st as a result of global business performance and sales of footwear and leather goods.

According to the financial report, tourism consumption led to sales growth in the region, Ferragamo's European revenue grew 10.2% to 76 million 910 thousand euros, North America grew 19.2% to 62 million 970 thousand euros, and central and South America earned 11 million 690 thousand euros, up 13.3% over the same period last year.

However, the devaluation of the yen has resulted in a 7.9% decline in the Japanese market revenue and an increase of 4.2% to 27 million 910 thousand euros under the constant exchange rate.

The Asia Pacific region, which accounts for 36% of the total revenue, is the largest brand market with an income of 102 million euros, an increase of 6.3% over the same period last year, an increase of 27% over the same period last year, while China's retail channel is the largest contributor in the region and its revenue growth is 20%.

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< p > Xue Shengwen said it is easy to see that Ferragamo is developing rapidly in China, but it is slightly weaker than the influence and popularity of LVMH.

LVMH has been stationed in China for an earlier time, and has a strong advantage in publicity and channels. Its position in the Chinese market is hard to surpass.

But Ferragamo has entered the field of electronic commerce in recent years, showing strong growth power, and its market share in China is expected to further improve in the future.

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< p > according to Xue Shengwen, Ferragamo adopted agency mode to pfer sales risk to distribution agents when entering Asia and other countries, but with the rapid growth of luxury market in Asia, it resolutely repurchased the Distribution Agency in China and South Korea, and wanted to profit alone.

This strategy has contributed to the rapid development of Ferragamo.

Repurchase distribution agent will become the choice of more luxury enterprises.

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< p > it is understood that Ferragamo has been concentrating on the direct control of sales channels as early as 2004. After all, it is a direct means to ensure the establishment and maintenance of brand image more effectively.

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< p > Xue Shengwen pointed out that at present, Ferragamo is only preparing to reclaim dealer's agent in Greater China.

In the Greater China region, the luxury market is growing rapidly, and the risk and resistance of luxury enterprises are relatively small.

While the development of luxury goods in other parts of the world is affected by the economic downturn, the growth rate is slow. Ferragamo is not inclined to recover dealership dealership in a short time.

At this stage, the two or three line cities are developing rapidly, and it will focus on expanding outlets in two or three cities.

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