First Quarter Results Showed Negative Growth

Kai Yun's two largest brand, Bottega Veneta, seems to be immune to sales decline, and the growth rate has begun to slow down.

Because of the sharp decline of tourists in Hongkong and Macao, the growth rate of the brand in the first quarter was only 3.1%.

Duplaix said that the two cities in China contributed nearly 1/5 of revenue to Bottega Veneta.

For the most popular topic of price adjustment in the luxury industry recently, Duplaix said the company would not immediately respond: "this is a very complex problem. We can't produce a single solution for all brands in the short term."

He said the group is considering every brand, product and category, trying to find a solution.

In April 13th, LVMG, the world's largest luxury group, first announced the first quarter revenue in 2015. Burberry followed its semi annual report in April 15th. Next week, the first quarter sales will be France's luxurious old Hermes.

In January, Gucci, who had changed hands in a big way, did not seem to have welcomed the bottom rebound. In the first quarter of 2015, revenues dropped 7.9%, far beyond analysts' expectations of 3%-6%.

Its parent company, Kering, the third largest luxury group in the world, said in April 21st that it is the first task for 2015 to stop bleeding and innovate brand image for Gucci.

Kai Yun group, which owns Gucci, Bottega Veneta and Yves Saint Laurent, announced its first quarter earnings.

It depends on the recent decline in the euro and sales volume being pushed up. The group's total revenue reached 2 billion 650 million euros (about 17 billion 620 million yuan), an increase of 11.4% over the same period.

However, if the activities such as positive exchange rate impact, acquisition and sale are removed, the sales increase will be -0.6% in real terms.

Kai Yun chairman and chief executive officer Fran C ois-Henri Pinault believes that the results reflect the complex economic and monetary environment today, and Gucci management change sequelae are also reflected.

In 2014, Gucci, the first major brand of Kai Yun, appeared the first negative growth in recent years.

At the end of last year, in order to stop the downward trend of Gucci, Kai Yun group made great changes to the top brands. CEO and creative director were both dismissed.

Once led

Marco Bizzarri, which has made straight progress in its performance, was named Gucci's new chief executive, and interior accessories designer.

Promoted to creative director.

Nevertheless, "we can not say that Gucci has returned to the stage of fashion," said Jean-Marc Duplaix, chief financial officer of the group.

He reiterated his prediction in the first quarter earnings conference that Gucci sales rebounded only in the second half of this year, that is, after the new series of Michele designs.

In order to create a brand new image, Duplaix believes that the brand needs to be marked in the dual "G" logo and "brand".

A new balance is found in the products.

Kai Yun plans to cut Gucci product lines and increase entry products, such as small leather goods and luggage bags.

In addition, the group will continue to invest in Gucci's digital retail network.

At present, what we see is Gucci's 502 self retailing stores in the 3 months ending in March 31st, with a 4% decline in sales and 10% in the Asia Pacific region.

When it comes to brand new image, the CFO takes the Saint Laurent Paris, the three largest luxury brand in the company, for example. The new creative director, Hedi Slimane, has changed the brand since she took office in 2012, not only replacing Logo, but also changing her name from the original Yves Saint Laurent to the current Saint Saint.

In the first quarter of 2015, the brand recorded a comparable sales growth of 21%.

This is also the only highlight of the entire quarterly report.

The relocation of Gucci itself reflects a recent trend in the luxury industry.

After experiencing long-term prosperity, many brands found their performance stagnated in 2013 and began to consider changing their image.

In the past two years, LV has tried to get rid of the image of the past, the canvas flower bag, by hiring new designers and introducing high priced leather handbags.

Prada also said in March this year that it would slow down the progress of store expansion and win back customers' curiosity about brands.

Gucci is not the only group in the group that sells poorly.

Brands such as Balenciaga, Stella McCartney, wrist watch brands such as Girard-Perregaux and jewellery brand Boucheron, such as overall sales, fell by 4.5%.