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    The Overall Adjustment Of The Luxury Industry Is A Step Forward.

    2014/1/14 16:23:00 27

    Luxury GoodsIndustry AdjustmentWatches

    < p > 2014 has come. Recently, everyone is looking back at 2013. Analyzing the data and digging up events, everyone is publishing their own views on the past and future development of the luxury industry. < a href= "http://www.91se91.com/news/index_c.asp" > clock > /a > as an important category of luxury industry, its development trajectory in China is very representative for the whole luxury industry. Therefore, at this time, it has inevitably become the object of mass media. < /p >
    < p > < strong > phenomenon: generally bad mouthing < /strong > < /p >
    < p > when all kinds of views are presented, what we see is that everyone seems to be playing down the whole industry of luxury goods. Words such as "downslide", "cold current" or even "recession" have come together. < /p >
    < p > this mood can be understood as the dissatisfaction of luxury goods in the Chinese market in the past few years. This discontent comes from many aspects, but where does it come from? < /p >
    < p > < strong > 1, each < a href= "http://www.91se91.com/news/index_c.asp" > luxury goods < /a > Group sales decline < /strong > /p >
    < p > in the past two years, the luxury industry has been slowing down in China for two days. There are market factors and political factors. For these changes in the market, both industry practitioners and ordinary consumers believe that everyone has their own feelings. Just after 2013, the general reports of the media can be understood. As a group and brand, it is no harm to be calm. We know that there are always some people who will welcome this result. < /p >
    < p > < strong > 2, a large number of brands closed shop < /strong > /p >
    < p > recently, it has been reported that a certain brand refused to disclose the closure of the brand in 2013. I believe that since everyone knows that the market is not good now, closing shop as a reasonable business behavior is no longer normal. Even in the case of the market, it will adjust the store according to the actual situation. Since people do not want to disclose, why should we not grasp the situation in this market generally not ideal?
    < p > Chinese people have a saying that a gun is a bird. This may not only be a statement, but a peculiar logic of thinking and work culture of the Chinese people. It must be because the brand has been doing well in the past two years. < /p >
    < p > < strong > 3, the end of the high profit era of luxury goods industry < /strong > < /p >
    < p > when it comes to high profits, it is certain that the profit of the luxury industry is definitely not in the category of the highest profit. When we see the high price of luxury goods, we ignore the high input of this industry. This high input is mainly manifested in marketing and operation costs. After all, the creation of luxury brands requires long time deposits and huge capital investment. As long as we check every year, we can know all kinds of media distribution and observe the storefront environment. < /p >
    < p > when it comes to data, according to the earnings reports issued by various groups in the past, < a href= "http://www.91se91.com/news/index_c.asp" > LVMH < /a > in 2012, the operating profit rate was 21%; the peak profit group's operating profit margin was 25.7% in the first half of September 30, 2013. Further pushing forward a cycle, the first 12 months of March 31, 2013, the annual sales volume of the watch department was 2 billion 752 million euros, the operating profit was 733 million euros, the operating profit rate was 26.6%, the Swatch group's operating profit margin in the first half of 2013 was 22.9%, and the net interest rate was 19.2%. Compared with some industries, these profit margins are not low. If they are very high, they may be a little reasonable. Let's take a look at another company, Zara's parent company Inditex SA (ITX.MC) released 2012 earnings report: from February 1, 2012 to January 31, 2013, Inditex gross margin was 9 billion 500 million euros, gross margin reached 59.8%, strangely, we did not hear someone shout Zara profits. < /p >
    < p > the first impression of the luxury goods industry is a sense of "high, big and upper". It is a misconception that people can not help thinking that it must be very profitable. Therefore, the so-called "end of the era of high profits" is said to be "a drop in profits" should be more precise. < /p >
    < p > < strong > 4, consumers increasingly rational < /strong > < /p >
    < p > recently, media said that Hongkong's luxury industry practitioners obviously felt that the consumer habits of mainland China had changed. They no longer blindly followed and no longer worshipped Logo. "Practical", "connotations" and "low-key" became the new keywords. The situation of "money and many people is stupid" is rapidly reversing, and the speed of change is amazing. < /p >
    From P, we can see two points. First of all, we all do not want to see that there is no taste for foreigners to spend money. They do not want to hear the name of "many money and stupid people". After all, no matter what industry you are in, you will be Chinese if you go abroad. This is a question of national image, and it is related to the dignity of every yellow skin and black haired Chinese. < /p >
    < p > Second, we can see that the outside world is not able to keep up with the rhythm of Chinese consumers, and it is slow to respond to changes in Chinese consumers' consumption habits, let alone prepare for this change. < /p >
    < p > we have to admit that China is a special market. Special markets naturally need unique vision and corresponding strategies. Consumers return to reason is also the trend of the times, but the problem of changing sooner or later. < /p >
    < p > < strong > viewpoint: the adjustment of luxury industry is a progress < /strong > /p >
    < p > remember last year when some media interviewed a brand executive, he asked the question of service differences at home and abroad. The executive actually said, "he was very surprised at the reporter's questions. In his view, they already attached great importance to Chinese consumers and provided them with the same level of service as overseas. "Here, I have to say, in the author's communication with domestic consumers in these years, the feeling of consumers is far from that. I hope he is false. Otherwise, in such an important position, even if the problem is unclear, there will be problems in the development of the company, and complaints from consumers and even the media will inevitably be inevitable. < /p >
    < p > the most important concern for the market in a short period of time is the commercial speculators. The real investment operators are looking at the long-term development, not to mention the highly cared industry of watches and clocks. < /p >
    < p > careful analysis of the past data shows that whether the brand or dealers, the high growth in the past few years is basically built on the premise of fast opening stores, the more the shop opens, the better the number is, which means that the main source of sales growth is the sales contribution from the newly opened stores, rather than from the promotion of single stores. The author thinks that it is a good time for all brands to face up to themselves and upgrade their existing store operation ability and service level. < /p >
    < p > China is a huge market. The general trend that China will continue to move forward is the consensus. Let's look at this industry objectively. Criticizing the criticism and promoting the development of the industry are the things that everyone who really cares about the industry should do. < /p >
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