Luxury Brand Growth Fell Burberry Into A Takeover Crisis

< p > with the third quarter earnings report of the world's major luxury goods groups, a string of less attractive figures once again confirms that the luxury market is going through a cold winter.

From Burberry's recent acquisition of rumors, the international luxury giant's three quarter earnings growth has declined sharply, and global luxury consumption has entered a weakening state.

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< p > < strong > Burberry into potential in the object of acquisition < /strong > /p >

< p > according to British media reports, since the resignation of CEO Angela Arend, the "a href=" http://www.91se91.com/news/index_c.asp "Burberry < /a" has been plagued by acquisition rumors.

In October last year, the company lost nearly 536 million of its market value.

Not long ago, a list of potential European acquired company in 2014 was released by UBS analysts, Burberry GroupPLC was on the list.

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At the beginning of last year, there were < a href= "http://www.91se91.com/news/index_c.asp" > luxury goods < /a > analyst and investment bank analyst. LVMH said it was possible to buy Burberry GroupPLC to make up for the increasingly weak P Louis brand.

For this reason, LVMH is regarded as the most likely purchaser of Burberry in the industry.

However, for the above rumors, Burberry China said it had not received notice from the group and was not aware of whether it was acquired or not.

As of November 2013, B urberry had 70 direct outlets in mainland China, covering 36 cities, including 9 new shops last year.

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< p > in fact, luxury goods giants are no longer in sight since last year.

Sales of Prada showed weak growth in the first quarter.

According to its latest three quarter results, compared with the strong growth rate of 32.9% in the same period last year, the net income of Prada in the third quarter increased by only 7.1%, and its growth rate dropped by nearly 80%.

Another luxury giant LVMH group's earnings report was even more surprising. The three quarter revenue of the group was about $9 billion 480 million, or only 1.7%, which was also significantly lower than the second quarter's 7% and the first quarter's 3%.

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The consumption of luxury goods in the Asia Pacific region, represented by China's P, has weakened the growth of global market directly.

In the first three quarters of this year, the net sales of P Rada in the Asia Pacific region reached 932 million euros, up 14.4% from the same period last year, a decrease of over 60% compared with the growth rate of 40.5% in the same period last year.

In the first quarter of this year, the world's second largest luxury goods group, Cartire and MontBlanc, grew by only 5% in the Asia Pacific region, compared with 46% in the Asia Pacific region last year.

Even in recent years, the second hand luxury market has been developing smoothly in Waterloo.

Hongkong's second hand luxury retailer Milan station issued a profit warning last week and expects the group to make significant losses this year.

This is not the first time that the Milan station has issued a profit warning.

In the first half of last year, the revenue of Milan station fell by 12.2% compared with the same period last year, and the net loss was 10 million 350 thousand Hong Kong dollars.

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< p > < strong > China's luxury consumption structure adjustment < /strong > < /p >

< p > according to the latest issue of Bain consulting, 2013 China luxury goods < a href= "http://www.91se91.com/news/index_c.asp > > Market Research < /a >, it shows that the development speed of China's luxury market in 2013 has further slowed down, the growth rate is only about 2%, which is lower than 7% in 2012.

"Restricted public consumption" is widely regarded as an important reason for the continuous decline of domestic luxury goods market.

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< p > recently, Nandu journalists visited Guangzhou's luxury shopping center. Taigu Hui found that many luxury stores have started year-end promotions, and the Burberry scarves only cost more than 3000 yuan at a price of more than 5000 yuan, with a drop of 40%.

For the sales situation this year, the above salesmen do not want to talk much, only saying that the number of shoppers at the end of the year has increased.

However, a high-end watch salesperson of Tai Koo Hui said that sales of watches had indeed declined, even though sales of festivals were not as good as before.

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< p > Bain data show that in the luxury market, the growth of watches and men's consumer products is the most obvious, and the sales of men's watches, which used to be the main consumer, plummeted by 11%.

Insiders from several state-owned enterprises in Guangzhou and Shenzhen say that the year-end lottery has not seen luxury prizes, and apple mobile phones and computers have become the choice of many companies.

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< p > "policy factors interrupt the consumption of grey and affect domestic consumer confidence."

However, Zhou Ting, President of the Institute of wealth and quality research, said that China's luxury consumption is shifting overseas. According to the wealth Quality Research Institute, China's luxury goods market reached 102 billion US dollars this year, and overseas consumption reached US $74 billion, accounting for nearly 70% of the total.

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< p > in Zhou Ting's view, the next 3 to 5 years will bring large-scale recession to the international first-line brand. "With the upgrading of global purchasing power, the electricity industry and other industries are changing, and now the top brand is changing to the fashion brand."

For the world's largest luxury consumer countries, China's luxury consumption has escalated. Consumers' tendency to logo is obvious. Core consumers are increasingly fleeing the top brand, which will further affect the middle and potential consumer groups.

Zhou Ting predicts that the overall market volume of luxury goods will also increase, mainly due to the rise of high-end luxury goods.

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