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Luxury Brands, Part Of The Two Or Three Tier Market Growth Rate Has Exceeded The First-Line Market.

2013/7/22 20:42:00 35

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After P, the luxurious growth of luxury brands has come to an end. The latest report of luxury brand PRADA shows that group net sales increased by 19.1% compared to the same period last year, and net income increased by 13.5% compared to the same period last year. These two figures are far lower than the 49% and 111% of the same period last year. At the same time, peer LVMH, Kai Yun, and other luxury groups have also developed similar trajectories with PRADA. 
 in the first quarter of the report, many luxury groups grew weak. LVMH sales increased 6 billion 950 million euros, an increase of 6%, while the group maintained a 25% growth in the same period last year. The growth rate of the group such as Li Feng and Kai Yun has plunged sharply, and has dropped to nearly one digit from nearly 50% growth in recent years. 
The activity of emerging markets such as P is the main factor driving the growth of luxury goods beyond the price rise of luxury goods. PRADA reported that during the reporting period, the Group recorded a net sales of 6 billion 790 million euros, of which the net sales in the Americas market were 9.4 euros, the European market was 1 billion 580 million euros, and the Asian Pacific market was 3 billion 160 million euros, of which the Greater China region recorded a net sales of 2 billion 10 million euros. In fact, not only is PRADA, but the Greater China region has become a booster for many luxury giants such as LVMH, Kai Yun and Li Feng Group. 
 a report predicts that by 2015, Chinese consumers will buy 60% of the world's luxury goods and become the largest consumer of luxury goods. Although Chinese consumers have given enough support to luxury brands, industry experts believe that luxury brands are already facing an inflection point in China. 
 Zhou Ting, President of the Institute of wealth and quality research, said that luxury brands had maintained a strong growth rate through high speed, but their brand value and consumer reputation also began to decline at the same time. Nowadays, with the constraints of macro factors and other factors, luxury brands are hard to maintain the pace of opening stores before. This allows luxury brands to face the risk of engine failure at any time. Prior to that, the LVMH announced the suspension of the exhibition. 
In the view of Lu Yi, general manager of Jinbao shopping mall, the first batch of luxury brands has entered China for more than 20 years. Due to the largest shopping center in the world as a guarantee, luxury brands, which are scarce resources, are often facing the situation of being looted by P. With the maturity of China's retail market, luxury brands have returned to the rational track. 
 Lu Yi said that many luxury brands are now adopting a way to "open up big businesses" or to shop in a more ideal location after closing stores. It is hard to reappear in 2010-2012 years of three years of madness. 
Wan Zhifei, vice president of radar watch China, said that many luxury brands, including radar, will continue to invest in China. At the same time, luxury brands will pay more attention to the development of two or three tier peripheral markets, because the growth rate of some two or three tier markets has exceeded that of the first tier market.