Luxury Industry Restores New Stores Instead Of New Ones

< p > with the global a href= "http://www.91se91.com" > luxury goods < /a > market slowdown, as well as brands such as Louis Vuitton Louis Weedon and Gucci Gucci will slow down in new markets, and pay attention to brand reputation and high-end products, the growth of new luxury stores is also slowing down.

But as the most important factor in sales growth, new store is reducing the growth of stores. Luxury brands are refurbishing and expanding their original stores instead of opening new stores.

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"In the future, we will have more choices to expand the area of the original store than to open a new store," said P Michele Salvatore Ferragamo SpA (MTA:SFER) CEO Michele Norsa, who interviewed the Wall Street journal during the Milan fashion week.

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< p > Salvatore Ferragamo SpA (MTA:SFER) Ferragamo has one of the largest store network brands in luxury, a href= http://www.91se91.com/news/index_c.asp, industry /a. The world has about 600 stores, but most of them are franchises, while Louis Vuitton Louis Weedon, which has about 500 stores, is direct.

Michele Norsa said that in view of the many brands of Paris Avenue Montaigne Montaigne Avenue, New York Fifth Avenue Fifth Avenue and Milan Via Montenapoleone Mont Napoleon street, we must increase sales space and increase sales to meet the high rent.

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< p > old point pformation does not mean that the cost is reduced. On the contrary, according to Salvatore Ferragamo SpA (MTA:SFER) Ferragamo CEO Michele Norsa, the cost of upgrading a new store in the old city is much higher than the cost of opening a new store. Salvatore Ferragamo SpA (MTA: MTA:) Ferragamo has increased a lot of expenses for the old store renovation plan.

Its flagship store in Fifth Avenue, New York, was the first target of the plan to be completed last year.

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Luca Solca, luxury goods analyst at P > Exane BNP Paribas, said that the sales growth of the luxury industry came largely from the growth of retail space and the increase in prices. Even so, the overall space is very small.

Luca Solca called Kering SA (KER.PA) the growth of the luxury sector in the past five years has largely come from the growth of new stores.

As of 2012, Kering SA (KER.PA), the largest source of revenue in the luxury sector of the open cloud group, has 429 stores running by Gucci Gucci.

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< p > early June, Kering SA (KER.PA) Kai Yun group said that because of the depreciation of the Japanese yen, Japan's domestic consumption and consumer confidence were strengthened. The group decided to refurbish 60 Japanese "a href=" http://www.91se91.com/news/index_s.asp "stores" /a "under the brand name", hoping to catch up with the revival of the local luxury industry in Gucci.

Kering Jean-Francois Palus, managing director of Kai Yun group, also said it would review the pricing strategy in the group's Japanese market and adjust the product mix and sales strategy: "upgrading the product price is one of the solutions, not the only one."

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