China'S Luxury Retail Report

British research and consultancy Mintel British Mint released the China Luxury Retail Report. The report said nearly 40% consumers would buy luxury goods from the official website of luxury brands, and another 26% would choose other online channels to buy luxury goods.

Mintel Matthew Crabbe, Asia Pacific Research Director at emmint, said that from the perspective of purchasing channels, "online retail outlets are more sought after by more than more than 20 year old young consumers. On the contrary, more than 40 year old female consumers are most likely to buy luxury goods through independent single brand stores and department stores."

According to the British Mint report, 41% of more than 20 year old men and nearly half (47%) of the same age female consumers had shoppers on the luxury official website. Similarly, 30% of the women in this age group and men were in other places.

Purchase luxury goods (such as Tmall, Jingdong, etc.).

As for the slowdown in China's luxury market, the agency said 2015 will be a turning point and optimistic about the future of China's market. The agency's report predicts that China's luxury market is expected to recover in the future, with a compound annual growth rate of about 4.5% over the past 2014-2019 years.

Consumers buy different products, occupying the top three of luxury goods, cosmetics and skincare products (63%), jewellery (63%), and ladies' handbags (56%).

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Hugo Boss plans to merge some factories and dissolve cooperation with an agent in the Middle East, which has led Hugo Boss to record a one-time expenditure of up to 1900 million on its books, which has a negative impact on profits.

The two digit growth of retail business is still the main driving force for the growth of group performance.

The Asia Pacific region and Europe are better than the group average.

However, the overall growth rate slowed down in Europe, but the UK and Spain maintained a two digit growth rate.

In the fourth quarter, the market environment deteriorated seriously, and the group did not perform well.

The fourth quarter sales volume was 684 million euros (about 854 million US dollars), which increased by 3% over the same period.

The profit before interest tax depreciation and amortization (EBITDA) was 167 million euros (US $209 million), an increase of 6% over the same period last year. However, in the fourth quarter of 2013, EBITDA grew by 17%.

Women's wear art director, the Chinese women's clothing series designed by Jason Wu, was better than the group average in the fourth quarter, to a certain extent, to make up for the negative impact of the decline in gross margin and the increase in operating expenses.

Hugo Boss said that as of January 1, 2016, the group would reclaim franchise from China, Korea and the Middle East in order to strengthen its control over major emerging markets.

The specific strategic measures are as follows:

In South Korea, Hugo Boss will take over 17 stores of franchised dealer TDCo before March 1st and jointly manage 7 duty-free shops with partners.

In China, Hugo Boss plans to take over 21 Chinese stores responsible for Wenzhou noble department store before April 1st, following the withdrawal of the agency from the Macao rainbow group, a franchise retailer.

After the completion of the acquisition, the total number of Hugo Boss outlets in China will reach 130.

In the Middle East, Hugo Boss has suspended cooperation with a distributor in the Lebanese capital of Beirut, taking full responsibility for the expansion of the retail network in the Middle East.

Hugo Boss plans to set up a distribution company in Dubai, which is responsible for sales in Arabia.

Hugo Boss expressed the hope that in 2015, the Chinese and Korean markets could contribute a percentage point of sales growth to the group, which would have a positive impact on operating profits.

Hugo Boss CEO Claus-Dietrich Lahrs said, "2015 is not easy for Hugo Boss, and the economic environment and political environment are full of uncertainty.

But we are confident that the group will continue to grow in sales. "

Analysts are optimistic about the long-term prospects of Hugo Boss.

They believe that by 2017, the profit margin before interest tax depreciation and amortization of Hugo Boss will reach 25%.

Although the group's share price fell by 3.5% after the performance briefing, Hugo Boss's stock has been the leader of the luxury sector in the past five years in the past six years.