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    Many International Luxury Goods Greater China Performance "Bleak"

    2014/12/9 21:47:00 33

    HermesLuxuryLuxuryLVMH Group

    According to the Quarterly Bulletin published by several international luxury goods groups recently,

    Prada

    The declining trend of international performance such as (Prada), Gucci (Gucci) and Louis Weedon (Louis Vuitton) has not been effectively suppressed.

    What is worrying is that the Greater China region has become a major disaster area for many luxury brands.

    "A bad pcript."

    When Prada group announced its quarterly report in December 5th, it showed that the net income of the group decreased by 27.6% compared with the same period in 2013.

    industry

    Evaluate it.

    On Monday, December 8th, Prada's share price plummeted 9%.

    Prada group is one of the leading companies in the global luxury industry. Its brand includes

    Prada

    , Miu Miu, Churchs and Car Shoe.

    Its main business includes the design, production and distribution of valuable handbags, leather goods, footwear, clothing and accessories, and also operates glasses and perfume according to the licensing agreement.

    The quarterly earnings report shows that Prada Group sales have shrunk, and profit margins have also decreased significantly, and its performance has deteriorated.

    As of October 31, 2014, three months, Prada

    group

    Revenue fell by 5.6% over the same three months last year.

    Despite this decline, the group's Miu Miu and shoe brand Churchs achieved 4.8% and 4.2% sales growth respectively, but did not prevent the overall downturn.

    Sales of leather goods from the group's main source of income fell by 9.1%, or 3.9% in the first half.

    According to the financial report, the reason why the retail channel is p less than 4.3% is due to the slowdown in overall market demand in Hongkong and Macao, which is described by Prada group as "

    especially

    Serious. "

    The total retail sales in the Greater China region were 566 million 200 thousand euros, down 4.1%.

    In the only important wholesale market in the Asia Pacific region, South Korea has a two digit growth in its independent customer business, mainly from tax exempt businesses.

    "The international economic environment is grim, and the luxury market is also adjusting its magnitude and nature," I Naomiaro.

    Prada said in its earnings report.

    In recent years, the international well-known luxury group's life is generally not good.

    The leading brand of the international luxury group, Kai Yun group's Gucci, sold more than expected 1.6% in the third quarter. Burberry's profits in the first half of this year also fell 12.4%, while Salvatore Ferragamo's three quarter profits fell 4.6%; and the group with Cartire watches, watches and other brands fell 4% in the first half of the year.

    Among these international brands, the LVMH group's performance in the third quarter has seen a rare 5% growth, but its main leather and garment business has not been much improved, and has been supported by perfume, watches and jewelry.

    In many luxuries

    brand

    In the earnings report, bad news about the sales of "Greater China" appeared frequently.

    Prior to that, the group has struggled in China in a downward trend and has yet to make any profit.

    Tods group sells back 6% in China.

    The changes of China's economic environment and social changes in Hongkong area are regarded as the main culprits of the major international luxury companies in China.

    In the face of setbacks in many companies in Greater China, people in the industry turned their thinking to changes in consumer groups.

    Among many international luxury brands,

    Hermes

    Rare achievements have been made in the Chinese market.

    In the first half of the year, the company reported a 7.9% increase in revenue, a 12% rise in fixed exchange rates and a 8.1% year-on-year net profit.

    Driven by the Chinese market, the Asia Pacific region grew by 17.2% over the same period last year, while the US market grew by only 13% during the same period.


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