Old Luxury Brands Are Struggling.

Old brand luxury brands, which are suffering from brand evaluation, are gradually struggling. The 2014 annual financial report released by the world famous luxury group Kai Yun group has added another example to this review. Kai Yun group's latest financial report shows that its brand Gucci fell by 0.5% in the fourth quarter of last year, and it fell for six consecutive quarters and 1.1% in the 2014 fiscal year.

It is reported that, thanks to the strong dollar, Gucci's fourth quarter revenue increased by 3%, from 941 million 200 thousand euros in the same period last year to 969 million 900 thousand euros, but it was 0.5% lower than that on the basis.

Under the influence of anti-corruption policy, Gucci's performance in the Chinese market continued to be weak. In addition, the outside world has an impact on the impression of overvaluation of counterfeit goods in China. The old brand design lacks the designer who can reinvigorate the brand influence, so that the old luxury goods giant Gucci has experienced the most difficult year in history.

In the 2014 fiscal year, the operating profit of Gucci brand from continuing business fell by 6.7%, from 1 billion 131 million 800 thousand euros in the same period last year to 1 billion 56 million euros. Affected by this, the luxury sector's operating profit also declined by 1.1% to 1 billion 665 million 600 thousand euros.

In the long run of China's industry, the cloud group has launched a major move in personnel appointment and removal. Last October, Kai Yun group announced that it would reappoint the president of Gucci brand Greater China, and fill the vacancy after the departure of Carol Shen Shen Xiangmei in January 2014 by Merinda Yeung, general manager of Taiwan Gucci. It is reported that Shen Xiangmei joined Gucci in September 2012 and announced his resignation only after 18 months of serving Gucci brand.

In addition, in order to reinvigorate its performance, Kai Yun group announced its own glasses business team in September last year, and recovered the agency of Gucci glasses two years ahead of schedule, and officially began its own operation since January 1, 2017. Kai Yun group's decision to act as a proxy for glasses business has shocked the luxury eyewear industry. Because of its smaller business segment, there is hardly any luxury group or brand that will take the spectacle business in its own right now.

In this regard, Luxury goods Industry experts say that the amount of ransom from 90 million euros is not a small sum. For the group of Kai Yun, which has a short-term profit decline, it can be worse. But for long-term interests, this initiative can be understood. After all, the spectacle industry has huge profits. Moreover, Kai Yun group can carry out Gucci glasses products on this basis. Industrial chain To control, to enhance brand image and future profit space are more advantages than disadvantages.

In addition to personnel adjustment and recovery of the right to operate glasses, Kai Yun group The luxury sector also made many major adjustments in 2014. Last May, Kai Yun group reorganized the luxury sector and set up two departments: luxury fashion and leather goods and luxury watches and jewelry to promote the growth of its brand.

Group chief executive Frankgois-Henri Pinault said that in the 2015 fiscal year, the group will focus mainly on existing brands, especially the Gucci brand that has continued to decline in the past two years. It is reported that in the adjustment of the luxury sector, the Gucci brand is independent of the above two departments, and its chief executive, Patrizio di Marco, joins the Executive Committee of the open cloud group and reports to Frankgois-Henri Pinault. This also shows that cloud group's determination to revitalize the brand Gucci. Meanwhile, Kai Yun group said there will be no new acquisitions in fiscal year 2015. Frankgois-Henri Pinault also denies rumors about the sale of Puma Puma.