Luxury Sales Are Declining, Who Will Be Affected By The Drop In Sales?

< p > 2013, Giorgio Armani SpA Giorgio Armani group taxes and fees amounted to 381 million 800 thousand US dollars, mainly resulting from the previous 270 million 900 thousand euro settlement, and 2012 group tax is only 157 million 800 thousand euros. < /p >
< p > 2013, Italy Tax Bureau Agenzia delle Entrate investigated the Giorgio Armani SpA Giorgio Armani group, which was related to three wholly owned subsidiaries of the group. Although the three companies had moved the tax registration place back to Italy in 2009, Italy Tax Bureau recognized that the income of the above companies from 2002 to 2009 must be paid in Italy. < /p >
"P > Giorgio Armani SpA Giorgio Armani group does not recognize tax evasion charges, saying that reconciliation fund is only to avoid a lengthy investigation, so as to focus on innovative activities. However, in the past two years, Italy's large luxury goods group has been subject to tax inspection without exception, aiming at the way of tax avoidance by Off Shore Company, such as Giorgio Armani SpA and Giorgio Armani group. Most of them have been identified as tax evasion by the Italy authorities and are subject to sanctions and penalties. < /p >
< p > < strong > luxury brand sales are declining. < /strong > < /p >
< p > Gucci, Coach, LV (the luxury brand that people first came into contact with), a few years ago, walking on the street with a bag of LV can be regarded as the most swaying person. In recent years, luxury goods have gradually spread to people's lives, and the sales of these luxury goods that first entered the country are declining. < /p >
< p > < strong > Gucci showed bad performance < /strong > /p >
< p > Gucci Gucci parent Kering SA (KER.PA) Kai Yun group released its interim results today. The group's most important luxury brand Gucci Gucci sales fell 4.5% to 1 billion 676 million 300 thousand euros, compared with 1.1% decline on the basis of the performance, performance continued bad, two quarter 5.7% decline compared with 3.2% in the first quarter continued to decline. Gucci Gucci brand has no sharp drop in revenue and profits. < /p >
< p > by the end of June 2014, the operating profit of the group's continuing business decreased by 3.9% to 8.102 euros. In the first half of the year, the Kering SA group's operating profit actually recorded 802 million 100 thousand euros, a 1.9% decline compared with 817 million 300 thousand euros in the same period last year. < /p >
< p > < strong > Chinese demand for LV is decreasing < /strong > /p >
< p > LVMH Mo t Hennessy Louis Vuitton SA (LVMH.PA), MOET & CHANDON Hennessy LV group chief financial officer Jean-Jacques Guiony, at the performance analysis conference, mentioned that the recent political disputes in Hongkong have led to significant damage to the overall business of the group, of which the most serious blow to the global tax exemption shop is. < /p >
< p > Jean-Jacques Guiony also pointed out that Chinese demand for leather goods and fashion luxury brands such as Louis Vuitton, Louis Weedon and so on is declining. As for the second half fiscal year of 2013/2014 in June 30th this year, Christian Dior Couture sales fell by 1.5% to 747 million euros (average exchange rate of about 1 billion 20 million US dollars). Among them, the brand's recurrent business fell by 22%, recording 84 million euros, or about 111 million 520 thousand dollars. < /p >
< p > due to the negative effects of unstable exchange rate in fashion, leather products, wrist watch series and jewellery series, Christian Dior SA, the parent company's total performance in the second half of last year, was 14 billion 800 million euros, or about 20 billion 300 million US dollars, down 8.6% from the same period last year. Under this influence, the group's total sales performance last year reached 31 billion euros, or about 42 billion 40 million US dollars, and only 3% higher than the previous fiscal year under the stable exchange rate. < /p >
< p > < strong > Coach sales fell by two digits, luxury positioning was very embarrassing < /strong > /p >
Coach, the "300 dollar king of North America", has not been very good recently. P has repeatedly heard the news of the decline in sales. First of all, CEO changed early this year, and then the luxury leather brand Loewe, the former creative director, joined Coach, trying to inject new energy into the brand to save the declining global performance. < /p >
"P" is not the only foreign brand with embarrassment. Many of the "fake luxury goods" that lead to positioning errors are coming out of China. < /p >
< p > Coach's earnings in recent quarters are indeed not optimistic. Sales in the third quarter of fiscal 2014 as of March 29, 2014 amounted to 1 billion 100 million, down 7% from 1 billion 190 million US dollars in the same period last year. The worst is the North American market, falling to 2 digits. It is worth noting that this is not the first time that the North American market has slipped and the downward trend has been going on. This is why Coach is in urgent need of a major adjustment at this time. < /p >
< p > < strong > luxury sales decline in the end who affected? < /strong > < /p >
Less than p ago, Bain consulting and the Italy Luxury Association released the global luxury market monitoring report 2014 Spring Edition. According to the report data, the global luxury market in 2013 was 217 billion euros, up 2.2% over the same period last year. The double digit growth era has become the past, and the explosive growth driven by the Chinese market is no longer there. In the forecast of the global luxury market in 2014, the growth rate of 2%~4% in China's mainland market is far lower than that in the Japanese market, which is caused by the depreciation of the Japanese yen, which has led to the growth of 9%~11% in the Japanese market, even less than the growth of 3%~5% in Hongkong and Southeast Asia. < /p >
P, however, the Chinese are still the world's largest luxury consumer groups. According to Bain's 2013 China luxury market research survey, in 2013, the Chinese contributed 29% of the world's luxury income, an increase of 4% over 2012. Then, what causes the mainland's mainland luxury consumption to slow down? Three factors are summed up after our research and analysis. < /p >
< p > < strong > 1. Anti-corruption policy hits a href= "http:// www.91se91.com/news/index_c.asp" > luxury > /a > consumption > /strong > /p >
"P" gift giving has always been an important part of China's luxury consumption. Since 2013, the anti-corruption work promoted by the state has had a huge impact. Data show that one of the important gifts category watches accounted for more than 1/5 of the total domestic luxury consumption, and its sales dropped by 11% in 2013. In recent years, there has been a slight decline in men's clothing category which has been showing growth trend in recent years. The anti-corruption policy has dealt a heavy blow to the confidence of big luxury brands in opening new stores in China. Large groups have said that they will carefully consider plans to open new stores in China, and expect that this anti-corruption pressure will continue to affect the domestic luxury market. < /p >
< p > strong > two, < a href= "http:// www.91se91.com/news/index_c.asp" > Hai Tao heat < /a > continues to heat up < /strong > /p >
< p > according to Bain's report, Chinese luxury consumers spend about 2/3 of their total overseas consumption. From the earliest Hongkong to later Europe, the Chinese "sea fever" has now spread to most of the world's luxury goods markets, including Europe, the United States, Japan and South Korea. The consumption of Chinese tourists has increasingly become an important source of income for more and more luxury goods markets in the country. In addition, in recent years, major brands have come to China to organize fashion shows and other activities. These activities help brands establish brand image and convey brand ideas, and more importantly, let more Chinese "potential tourists" know these brands, so that they can find and recognize these brands quickly after coming to foreign countries, and then consume in their overseas stores. < /p >
< p > < strong > three, < a href= "http:// www.91se91.com/news/index_c.asp" > first tier cities < /a > luxury market tends to be "saturated" < /strong > /p >
< p > in recent years, luxury brands have shifted their focus in the Chinese market from the first tier cities to the two or three tier cities. The most important reason is that the luxury goods market in the first tier cities in China has gradually become "saturated" in recent years. It is difficult for them to get bigger growth in these cities, while opening up new stores in the two or three line cities where the shopping channel is relatively closed is able to achieve certain revenue growth for the brand. Compared with the opening of new stores, the major brands are now upgrading the store image in the first tier cities by upgrading their stores and relocation, so as to promote the growth of same store sales and consolidate the existing consumer groups. < /p >