Valentino Performance Leads The Luxury Industry To Lose The Chinese Market

According to the report, Valentino has achieved a far exceeding average growth rate: its profit has increased by 57% in a year, and the net profit growth has reached 36% as a result of the elimination of investment, taxation, devaluation and loans.

What kind of company is Valentino? Compared to the mainland's Gucci and Hermes, Valentino seems to exist more in China than in the world. The brand from Italy is always closely related to complex processes, representing the highest standard of global advanced customization and advanced garments. In 2012, Valentino was bought at the high price of 700 million euros by Mayhoola, an investment group supported by the king of Qatar, a big oil country.

Come back and say Valentino earnings. In fact, this is not a grand slam for losing profits. On the contrary, Valentino's high revenue growth has been going on for several years. In the 5 years since 2010, Valentino Sales volume It doubled all the time. In 2013, the profit grew by 25%, from $500 million to over $644 million.

In this regard, CEO Stefano Sassi did not intend to be modest at all. At the end of last year, he even said in an interview that he did not want to see that the growth rate in 2014 was less than 25%.

　　 Stefano Indeed, the royal family handed out a beautiful answer. The growth rate of 57% can be regarded as a miracle in the luxury industry that is still warm and cold. Where is the mystery behind the startling figures?

The frank CEO told us the answer: "well, it's nothing, but we didn't focus our business on China."

The truth is always cruel. The fact is that the luxury companies that have been living very badly these days are the ones that thrive on the Chinese market for the first two years. We have published a report from the Bank of Paris, which mentioned that in recent years, China's contribution to the luxury market has reached 30%. Any fluctuation in the Chinese market will cause a huge butterfly effect. Therefore, when domestic anti-corruption efforts are intensified, luxury goods market Like the ebb tide. Another big luxury market, the Hongkong market, was also hit hard by the "occupy China" incident, not to mention the large number of customers attracted by the devaluation of neighboring Japan and Russia.

Unlike Coach, Burberry and other luxury brands that are moving into the Chinese market, Valentino is doing something from beginning to end, that is, to make the existing markets the United States, Europe and Asia (Japan and Korea) better and deeper. In contrast, Valentino is very cautious about China's "unfamiliar territory".

In 2014, Valentino opened new stores in New York and Hongkong. This year, they will also open a bigger flagship store in Rome. It sounds like there is still nothing in mainland China. For this reason, we have taken a special look at the data of Valentino China official website.

At present, Valentino has 21 direct outlets in the mainland, removing men's wear and accessories, and selling women's doors with 13. In the United States, the number of stores has not yet exceeded 20.

The numbers seem almost the same, but Valentino is still very conservative in China compared with Gucci which has opened more than 50 Direct stores in China.