Debt Crisis Dragged Down The European Economic Luxury Group To Create Good Results In China

From P to 2010, from the relatively small and high-end Herm s to the luxurious atmosphere of Louis Vuitton, many brands have witnessed how the Chinese people, especially the new rich class, love the luxury goods so much that the entire luxury industry has made a lot of money - and this period is almost the most difficult time for everyone to remember. Louis Weedon, Herm < /p >
< p > but this powerful Chinese engine is slowing down at least according to its own high speed standards. Besides, the new government of China is also cracking down on the excessive consumption and gift giving behavior of officials. < /p >
Less than P, the luxury goods industry, which has annual sales of 217 billion euros, finds itself faced with a disturbing but evasive question: has the era of two digit growth been over? < /p >
< p > please click on the answer to enlarge this question, which is of great significance to the brand strategy of the luxury group, whether in the world's largest population or in other markets. It will also directly affect investors' valuation premium for luxury goods. < /p >
"A few years ago, the slowdown in China's consumption growth hardly stirred ripples in the luxury sector," said Luca P, an industry analyst at Exane BNP Paribas, Paris. Now, China has the potential to trigger a wave. " < /p >
According to a study conducted by Fondazione Altagamma and Bain & amp; Bain (P & amp; Company), the average annual growth rate of luxury goods sales in the past three years is over 11%, which is mainly driven by the Greater China region. In 2012, the sales of luxury goods in Greater China increased by 19%. But this year, the growth rate of the Greater China region is expected to drop to 4%, and the overall growth rate of the luxury industry will drop to only 2%. < /p >
< p > China's luxury sales growth slowed down, mainly due to the slowdown in China's economic growth and the Chinese government's measures to combat gift giving. R my Cointreau, a Paris based liquor and liqueurs group, called it "measures against waste and extravagance and waste". The slowdown in the Chinese market is so significant that this year the Americas surpassed Asia as the main engine of growth in the luxury sector. < /p >
One of the problems facing the world's most expensive and most desirable watches, jewelry, "a href=" http://www.91se91.com/news/index_c.asp "fashion" /a "and handbags" is that China has an important influence on the luxury industry at last. According to the data provided by the bank and Securities Department of Paris, Greater China accounted for 1/4 of Louis Weedon's sales, accounting for 35% of Cartire's (Cartier) sales and 45% of OMEGA's (Omega) sales. < /p >
< p > Hermes recently estimated that over 1/2 of its global sales in the next few years will come from Chinese consumers. Hermes is famous for its platinum handbags (Birkin) and Kelly (Kelly) handbags. < /p >
The impact of slower sales growth in China began to reach the headquarters of luxury group, P. Remy Martin has warned investors recently that business profits will fall by at least 20% this year, mainly due to the "significant decline in China's performance" in 2012. Remy Martin's Royal production of $3000 a bottle of Louis thirteen Cognac brandy. < /p >
The revenue of the fashion and leather products Department of P LVMH declined slightly in the third quarter of this year. Lower than expected results led to a 6% fall in the market and 4 billion euros in market value. Lu Wei Ming Xuan is Louis Weedon's parent company. It is the world's largest luxury group by sales volume. < /p >
< p > Remy Martin's new CEO a href= "http://www.91se91.com/pioneer/" > Frederic Frantz < /a > (Fr e d ric Pflanz) firmly believes that the slowdown in China's market growth is only a temporary phenomenon. He said: "the market demand will be warmer and warmer. We will not miss it when it happens." Frantz's business card is printed on both sides, printed in English and printed in Chinese. < /p >
< p > other luxury group points out that even if sales growth in China is slowing down, Chinese tourists will still shop abroad. Italy luxury industry association and Bain estimated that although greater China only accounts for about 13% of global luxury sales, 29% of customers who buy luxury goods are Chinese. The proportion of Chinese in 2005 was less than 5%. < /p >
< p > however, the current price of luxury goods group is about 18.5 times higher than the expected profit in 2014, which is about 50% higher than that of the European Storck 600 index (Stoxx 600). This may be in line with the historical valuation of the luxury industry, but it also reflects a sharp rise in the valuation of luxury goods since the collapse of Lehman Brothers. When Lehman went bankrupt, the price of the luxury goods industry and the Storck 600 index were about 7 times. < /p >
In a recent report, Otiye Leopold L, an analyst at Oddo Securities in Paris, asked: "in view of the declining attractiveness of the growth of luxury goods, should the market be priced as a valuation unit for luxury stocks in the same way as in the past?" < /p > Oddo Securities.
< p > > a href= "http://www.91se91.com/news/index_c.asp" > luxury goods < /a > the company is taking various measures to deal with the slowdown in sales in China. < /p >
One of the ways of P is to upgrade the unit price by transferring to the high-end market. Gucci (Gucci) began to make more use of Python skin and other rare leather materials to produce handbags. Gucci's parent company is Kering, headquartered in Paris. Louis Weedon of Lu Wei Ming Xuan is also planning to raise the price of the product. < /p >
< p > other companies are doing the opposite. This shows how difficult it is to form an effective brand strategy when China is opposed to the new trend of luxury gift giving. < /p >
P, one of the most high-end liquor brands in China, half of Shuijingfang's products are priced at 500 yuan (US $82) per bottle, after which none of the products was below that price. Liquor is the favorite drink of Chinese officials. < /p >
< p > analysts pointed out that luxury groups also need to look elsewhere for growth. The Paris securities and banking department, said that the increase in the number of Direct stores is on the one hand, on the other hand is e-commerce. He pointed out that luxury groups are slow in formulating effective e-commerce strategies. < /p >
< p > "so far, one thing is clear:" the era of easy picking has basically come to an end. < /p >