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    Luxury Brands Seek Profits In Asia To Gain Market Popularity

    2014/3/5 10:45:00 29

    LuxuryBrandClothing

    < p > it is reported that reporters learned yesterday from a research report released by a domestic research institute that last year, the world's largest luxury group "a href=" http://www.91se91.com/news/index_c.asp "LVMH group" /a "sales increased by 4% over the same period last year, lower than that of the previous year's 19%., another giant group, the quarterly report of Kai Yun group also showed that the group revenue and the growth rate of the luxury sector slowed down.

    Meanwhile, Asia, led by China, has more and more influence on the sale of luxury goods.

    For instance, sales of Remy Martin Cognac dropped by 32%. due to China's anti-corruption effect. Industry experts believe that Asia has become an increasingly attractive "banknote printing machine" for luxury giants.

    < /p >


    < p > < strong > Asia becomes "a href=" http://www.91se91.com/news/index_cj.asp > banknote printing < /a > ".

    < /strong > < /p >.


    According to the report released by the China Quality and Quality Research Institute, last year, LVMH group created a record sales of 29 billion 149 million euros, ranking the highest in the history of P and ranking among the top luxury group.

    However, its sales growth slowed down from 19% in 2012 to 4%. < /p last year.


    Sales growth in France is the highest in all regions. The sales growth rate of 11%. in Asia and the United States except Japan is 4%, while in other European countries except France, sales are sluggish and down by 1%.. Overall, the group's most tragic decline in 2013 was 9%, the largest decline in history.

    In contrast, Asia has become the engine of LVMH growth, and 37% of its shops are distributed here. Sales account for 33%, and the Chinese market still plays the role of locomotive.

    Taking Hermes as an example, the highest growth rate in 2013 was China's Asia (except Japan) region, where sales increased by 16%, the highest in all regions.

    < /p >


    "P" is unique. Recently, the other luxury giant, Gucci and Bot tegaVeneta, opened its three quarter earnings report.

    As of the three quarter of September 30, 2013, Kai Yun group revenue fell 1.5% to 2 billion 523 million euros, of which the luxury sector growth slowed, up only 1.5% to 1 billion 617 million euros over the same period last year.

    < /p >


    < p > for this, the Institute of wealth quality says that in emerging markets, luxury brands can enter at the lowest cost and grab the highest profits.

    "The absolute right to speak of price, channel and marketing has made Asia a LVMH printer, of which China is undoubtedly the top priority."

    < /p >


    < p > < strong > Remy Martin Cognac sales fell 32% < /strong > /p >


    < p > report shows that in 2013, the sales growth rate of boutique retail business was the highest in the category of LVMH group, reaching 14%, especially the rapid development of the tourism retail industry became the new engine of LVMH.

    Secondly, the growth rate of flavor products reached 3%., which accounted for 14% of the group's sales. The growth rate of alcoholic products was only 1%, down from 16%. < /p > in 2012.


    < p > cause this situation, the Chinese market is changeable.

    Although the annual performance for 2013 has not yet been released, the latest quarterly report of Remy Martin giant group shows that Cognac's sales of Cognac, which contributed 80% of the group's profits, dropped by 32%, due to the accelerated decline in the Chinese market due to anti-corruption.

    < /p >


    < p > "this situation is also reflected in some famous watches."

    An analyst who has long been concerned about watch and luxury goods told reporters that the high-end watches with beautiful performance in the past had to face the challenge of sales decline last year, which was dragged down by the Chinese market.

    "From the domestic market, at least one or two years, these high-end watches and liquor products with consumer demand for gifts will continue to be affected."

    < /p >


    < p > < strong > the traditional brand goes down the altar < /strong > < /p >.


    < p > it is worth noting that in the quarterly bulletin issued by Kai Yun group, "a href=" http://www.91se91.com/news/index_c.asp "Gucci < /a" is still the flagship brand with the largest contribution, and occupies 3 billion 561 million euros in luxury sales of 6 billion 470 million euros.

    However, its growth rate has shown signs of weakness.

    In the fourth quarter of last year, its comparable sales increased by 0.2%, down from 0.8% previously expected, the lowest growth rate since the third quarter of 2009.

    Reporters learned that the brand originally planned to open 10 new stores in China last year, but in fact, the family did not open.

    On the contrary, in the past year, Gucci has continued to maintain brand attractiveness through price increases and tightened sales channels, especially for Asian markets.

    < /p >


    < p > reporters also looked at the LVMH group's sales of rookie flavor products last year, and found that there are some moderately priced mid-range brands including benefit, Makeupforever and fresh.

    In this regard, the Institute of wealth quality believes that unrestrained pursuit of profits is making traditional brands go down the altar.

    "The popularity of the market brought about by the profit maximization will lead to the popularity of the brand, which will become a fact that many brands have to face."

    The report points out.

    < /p >

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