Asia's Market Demand Decreases, Luxury Goods Sales Decline

The latest performance of leather goods manufacturer Gucci (Gucci) has been the worst in four years. Kering, the parent company, thinks Gucci wants to become more successful. Advanced brand More efforts are needed.

Gucci accounts for more than half of the market value of Kai Yun group. Due to the low demand in Asian markets and the fact that the company itself has repositioned and upgraded its brand, it has not yet been successful, and has suffered the same fate as the old rival Louis Weedon.

Gucci's three quarter sales increased by 0.6% over the same period last year, but failed to reach 1% of analysts' expectations, while Louis Weedon's sales grew by 1% to 2%.

The two rival luxury brands have experienced a reduction in consumption caused by the 2008-2009 European and American economic crisis, and a rebound of sales growth from 2010 to early 2012.

Analysts believe that the downward trend of sales of Gucci and Louis Weedon can not declare the decline of the luxury goods industry, more reflecting the weakening desire of consumers for big brands.

Other competitive brands such as Prada (Prada), Ferragamo (Salvatore Ferragamo), Hermes (Hermes) and Burberry (Burberry) reported continued growth of more than 10%.

"According to the downward trend of Gucci and Louis Weedon, it is wrong to infer that the whole industry is wrong," said Antoine Belge, HSBC luxury analyst. "Two brands are accelerating repositioning: weakening logo and making more products." Leather products 。 This will be a long-term process. "

Gucci and Louis Weedon's products are considered to be too common. Efforts are being made to strengthen the supply of high-end products, which will provide less logo products and more expensive leather handbags.

"Such a relocation needs to be carried out step by step, and the transformation is not over yet." Jean Mark, chief financial officer of Kai Yun group, discussed Gucci with analysts on a telephone conference in Jean-Marc Duplaix.

Jean Mark said that the sale of logo free bags, such as bamboo bags, accounted for 55% of the total sales of Gucci leather goods, compared with 35% of the same period last year, and the price of the same package increased by 10% over the same period last year.

Gucci is rectifying its wholesale and distribution channels, especially in the United States, Japan and Italy. Gucci's direct sales now account for 77% of the company's total revenue.

"Gucci's performance is due to changes in China's consumption environment and the relocation of its brand, which has led to a reduction in the number of imported leather products at the entry level," Jean Mark told reporters at a conference call.

Analysts point out others of Kai Yun group. Luxury goods Brand performance in the three quarter was very strong, Bottega Veneta grew by 16%, Yves Saint Laurent (Yves Saint Laurent) grew by 12%, and its brands such as Stella Macartney (Stella McCartney) and Alexander McCune (Alexander Mcqueen) increased by 9.4%.