Luxury Products Have Produced Aesthetic Fatigue, Analysts Say Gucci Will Remain Unchanged.

At the end of last month, Kering SA (KER.PA) Kai Yun group released the three quarter earnings as of 30 in September 2014, and Gucci's Gucci business showed no signs of improvement. In the three quarter, sales fell 1.6%, from 864 million 800 thousand euros in the same period last year to 851 million euros, a decrease of 1.9% over the basis, far less than the 0.6% decline expected by analysts. According to No Agency, a research firm, sales of Gucci Gucci brand have dropped for 5 consecutive quarters, and the three quarter of this year has declined compared with sales.

Julius Baer Luxury Brands Fund, head of the Swiss luxury speculation fund, told Reuters in an interview that some brands had been saturated in the Asian market and produced an aesthetic fatigue. Julius Baer Luxury Brands Fund holds Gucci Gucci, Gucci brand competitor Louis Vuitton Louis Vuitton parent company LVMH Mo t t t Luxury Brands, MOET & CHANDON Hennessy LV group shares.

Since 2012, due to the slow recovery of the global economy, the slowdown in China's economy and the government's anti-corruption led to a sharp slowdown in the luxury market. Recently, the Ukraine, Middle East geopolitical crisis and Hongkong's "occupy the middle" movement have made the luxury market worse. Especially in the Asia Pacific market, some brands and clocks, famous wines and other products have been clouded and no improvement is expected.

Although the environment is the same, Gucci Gucci, Louis Vuitton Louis Weedon and Herm s s have different performances, among which Gucci Gucci is the worst performing Gucci, and sales are declining continuously. Louis Vuitton Louis Weedon is growing dynamically, showing an overall low single digit increase; Herm s s is the best performance, and the Asia Pacific region is still its leading market, contrary to the Asia Pacific decline of Gucci Gucci and Louis Weedon.

Analysts and investors have criticized Gucci Gucci for its lack of innovation capability, too many accessories, too much price and too fast price increases. Luca Solca, a leading industry analyst and Exane BNP Paribas, said Gucci Gucci should learn from Hedi Slimane to bring about changes and innovations in Saint Laurent.

At present, Saint Laurent is the flagship brand of Kering SA Open Cloud group and even the whole group's fastest growing brand. The controversial designer Hedi Slimane has joined the brand and has been leading double-digit growth. As of the 30 quarter of September 2014, the brand revenue increased by 27.6%, an increase of 27.5% over the basis, from 139 million 300 thousand euros a year earlier to 177 million 800 thousand euros. Bottega Veneta brand revenue increased by 10.4%, an increase of 10.8% over the basis, although there is still double-digit growth, but since joining the 1 billion euro club, the growth rate has also slowed sharply compared with the previous double digits.

As Asian sales slowed down or dropped, the two luxury goods Gucci Gucci, Louis Vuitton and Louis Weedon in 2013 announced high-profile strategies in a high-profile manner, calling products focused on higher prices while carrying out the "go Logo" campaign. However, for the so-called high-end strategy of the two brands, the industry is more regarded as "marketing strategy". Luxury industry analysts say that "Gucci, Louis Vuitton sales and profits basically rely on low price products, high priced products are brand and marketing strategies, luxury goods market can be selective too big now, high priced products attract only a small number of consumers, but more consumers are being driven away."

According to Reuters statistics, over the past 4-5 years, the price of Gucci Gucci has increased by more than 40%, which has also prevented many consumers from evade. Most luxury goods have been raised about 2 times a year, and the price range has increased by 5%-10%.

In addition, unlike Louis Vuitton Louis Weedon, Herm s Hermes, who constantly held exhibitions and moved the exhibition to China, Gucci Gucci rarely did the same. Marketing 。 Jimmy Choo co-founder Tamara Mellon said that Tom Ford left Gucci Gucci was missing some "special things". In 2004, Tom Ford Ford and Domenico de were left after the Gucci Gucci era ended. Gucci Gucci revived and made the brand one of the most famous and most profitable luxury goods.

Kering SA has been making changes in the past year in the luxury sector, including the Gucci Gucci brand, including the launch of cosmetics. Gucci Gucci cosmetics was first launched by Procter Gamble & amp; Gamble Co. (NYSE:PG), P & G P&G agency in September. However, the industry estimated that the first year sales will be about $15 million, which is a drop in the bucket for the sales of the Gucci Gucci brand with sales of up to 3 billion 500 million euros. Besides, the brand also announced that 2 years from the agent, the agent of the Gucci glasses was recovered from the agent of the Safilo Safilo (Gucci) group. In addition, Gucci Gucci has just appointed Gucci Gucci Merinda Yeung, general manager of Taiwan area, will serve as the president of Gucci Gucci Greater China, to fill the vacancy after January 2014 Carol Shen Shen Xiangmei left. Serving Est e e Lauder Cos. Inc. (NYSE:EL), Estee Lauder, for more than 20 years, has been the Carol Shen of the general manager of China, Shen Xiangmei joined Gucci Gucci Gucci in 2012. It only served the Gucci Gucci brand for 18 months and then left suddenly. However, Merinda Yeung is also a "rookie" of Gucci Gucci brand. She just joined the brand in January 2014. Since 1999, she has been working as Gucci Louis's biggest rival, Louis Vuitton Louis Weedon, from 1999. She has been a retail director from the store manager, and then joined Chanel Chanel. Merinda Yeung will be formally completed in January 2015 and report to the brand CEO Patrizio di Marco.