Bags Are Still &#34 Of Luxury Brands; Cash Cows "

In the past two years, the company's handbag sales have declined.

This should be the most taboo sales performance of luxury brands. In the luxury industry, handbags are the most profitable accessories for brands, and their production costs are easy to control, and they are most popular among luxury customers because of their high reuse rate.

The US high-end designer Proenza Schouler, which has just sold part of its share to the private Holdings Company Castanea Partners, is facing a major product strategy adjustment.

You may be strange to Proenza Schouler, but you must have heard of PS1 bag.

It is the IT bag that has been on fire since it was launched in 2008.

"The first thing we need to do is to manage expenses more rationally."

Ron FraschFrasch, partner of Castanea Partners, a new shareholder, said in a conference call on the office. "We need to reclaim our handbag business. Handbag sales have slowed down in the past year and a half, but this is our biggest profit item and we have the greatest assurance to help improve our overall sales."

"There are so many brands that people will think of their family first when they mention their names," Frasch, for example.

The platinum bag and the MaxMara coat.

In addition to the characteristics of handbag items, Proenza Schouler's PS1 bag series does have the potential to become Proenza Schouler signboards.

After graduating from the Parsons School graduate Lazaro Hernandez and Jack McCoullough in 2002, the first series was launched.

In the company's Barney New York phase, a big order was made.

When PS1 was launched in 2008, it was even more helpful.

The designer of CFDA won the prize.

PS1 combines the postage package with its practicality and leisure, looks and looks, so in its hottest 2012, from Leithton Meester, Emma Roberts to Pace Wu, they are carrying their backs.

It is interesting that the original designer of the PS1 bag went to LV later, and Proenza Schouler now excavated a new accessory designer from LV.

Last year, the LVMH group said it had a stake in Proenza Schouler, but the latest New York Times reported that the two companies did not cooperate at all because the price had not been discussed.

As for the overall development of the brand, Frasch said that the most important thing to do is to raise awareness.

"Although New York and fashion know our brands, many other countries in the world do not understand it," Frasch said. "We must correct this."

It is understood that the brand now has an annual income of nearly $85 million, and there are 10 independent stores and more than 250 retail outlets in 20 countries and regions.

At the beginning of this month, Proenza Schouler also announced cooperation with L'OREAL group to develop a new perfume.