Strong Momentum Of Light Luxury Brands

Despite the high-profile 2015 spring and summer clothing series released in Milan fashion week, Italy luxury goods company Prada had to face the reality of slow growth in the first half of this year and a sharp drop in profits by 20.6%.

Data show that Prada group opened 75 new outlets in the past year.

In the first half of this year, the volume of sales in the Middle East increased by 20%, while the Asia Pacific and Europe declined to some extent.

Data show that in the first half of the year, the Asian Pacific market recorded a net sales of 619 million 200 thousand euros, down 1.3% from the same period last year.

The net sales in the European market were 361 million 500 thousand euros, down 3.4% from the same period last year.

The slump in the Asian market has not only cast the shadow of profit reduction on Prada, but also pressed the sales of its luxury brand giant, the group of luxury brands.

In the first five months of this fiscal year (April to August), the total sales volume of the peak group increased by 4% on the basis of the fixed exchange rate, but the dollar and yen depreciated, but this figure increased only 1% after the euro was converted into euros.

Management points out that the slow growth in sales is mainly due to the sluggish Asian market.

The global luxury market is expected to grow only 4% to 6% this year, flat in 2013, Bain, a consultancy, said in a research report.

Among them, China's market growth is expected to be 2% to 4%, much lower than the two digit growth achieved in 2010 and 2011.

As the main battlefield of Asian market, the Chinese market is luxury.

In the first half of the year, Xue Shengwen, a senior researcher of CIC, told reporters in the "China made news" that there are two reasons for the downturn in the luxury industry in the first half of 2014. First, the domestic situation of high pressure anti-corruption is unquestionable. Because of the reduction of official demand, most high-end consumer goods in China have been hit hard, high-grade tobacco and alcoholic drinks, high-grade tea and so on. Luxury goods, as one of the objects of gift giving or official consumption, will also be adversely affected. Secondly, the domestic economic situation is not good. This factor will certainly not affect the purchase plan or intention of the high-end consumers, but it will have an impact on the younger part of the weaker economic sectors. In addition, luxury goods have repeatedly exposed the fake products and further shaken the hearts of such consumer groups. Share plays an important role, and what is the Chinese market?

However, when luxury brands are under heavy operating pressure,

The brand is gaining a double-digit strong growth momentum.

Two years ago, the US luxury light brand MICHAEL KORS, which was issued at the price of 20 US dollars, has exceeded 80 US dollars and its market value is more than 16 billion US dollars.

MICHAEL KORS recently released the first quarter results of the 2014/2015 financial year, showing that sales revenue increased by 9.192 billion, up 43.4% from a year earlier, of which retail business was $480 million 200 thousand, an increase of 47.5% over the same period last year.

In addition to achieving 30% sales growth in the US base market, MICHAEL KORS also grew by 127.7% in Europe and 45% in the same store, while sales in other regions, including China, also increased by 64%.

According to the 2013 luxury research report released by Euromonitor, an international market research firm, one of the driving forces of the global luxury market in 2013 is the development of "light luxury" brand.

The spring of China's light luxury market has also led to the accelerated layout of all kinds of capital.

In 2013, FURLA, KATE SPADE and other brands were looking for local partners to expand their business in China.

As for the growing "light extravagant consumption", Xue Shengwen also pointed out: "the rise of light luxury market is mainly due to the demand of the mainstream consumer groups, whether in design or price.

The positioning of light luxury is between luxury and fast fashion. It has both good quality and original design, and low price. The urban white-collar community is also acceptable.

The rapid development of fast fashion brands has passed. Consumers are more focused on quality and design. Therefore, the luxury goods with high performance price ratio has reached the peak of development.

Zhou Ting, Dean of the Institute of wealth and quality, once told the media: "consumers have become inert in traditional old luxury goods, and they need new brands to meet the diversity of their needs.

With the decline of the growth of international brands, light luxury brands have taken the lead in the consumption of luxury goods.

But Zhou Ting also expressed concern about the future of "light luxury". In her view, compared with luxury luxury goods, consumers of light luxury goods have lower stickiness.

"I am not optimistic about the endurance of light luxury.

There will be high speed growth in two to three years, three to five years or no big problems, but in the long run, the profit is not ideal. "

The "quick up and down" mode of making money does not guarantee that luxury goods will occupy a favorable position in the market for a long time.

For future luxury goods and luxury goods

What kind of development will there be? Xue Shengwen told China Daily News reporter: "in line with the needs of the mainstream consumer groups, with high performance price ratio, light luxury goods will usher in the development of spring.

But it should be noted that the development of light luxury goods has attracted the attention and entry of many brands. If the brand wants to get more market cake, it will certainly do well in quality and marketing.

As for luxury brands, domestic consumption will return to reason, and high-end consumer groups with economic strength are the mainstream.

For luxury goods or light extravagant products, it is the trump card for the future to truly enhance the quality and develop a customer base with a fixed viscosity dependence.