Where Do Luxuries Come From?

After the latest financial reports, they said they were getting better, you know.

Which one is stronger than MH and Kai Yun? Let's analyze and analyze them together.

Kai Yun (Kering) and LVMH reported good news in July 27th and 28, two days: the first half of 2015 witnessed a surge in revenue.

In contrast, the Franois-Henri Pinaul's Kai Yun group was slightly inferior, with a sales increase of 8% (revenue of 5 billion 510 million euros, or 37 billion 820 million yuan), and against the LVMH group of Bernard Arnault, with an increase of 9% (revenue of 16 billion 700 million euros, or 114 billion 620 million yuan).

Among them, exchange rate fluctuations, such as the strength of the US dollar and the decline of the euro, have benefited many European luxury companies.

According to the earnings report, two French luxury goods groups are gradually coming out of the sluggish sales period.

What is the more effective way to get rid of it? We try to make a comparison from the following angles.

LV has always been regarded as a cash cow of LVMH group. This time it has also failed to live up to shareholders' expectations.

Although LVMH has never disclosed its own performance according to the brand, the proportion of fashion and leather products with LV as the top card has accounted for more than 1/3 of the group's revenue, reaching 5 billion 900 million euros (40 billion 470 million yuan), an increase of 5% over the same period last year.

Among them, LV has made great achievements. The classic Monogram and new leather products have received high praise from the market, especially Chinese customers.

Jean-Jacques Guiony, chief financial officer of LVMH, said that the turnover of Chinese contributions to LV around the world surged by 10% in the first quarter.

As the main brand of Kai Yun group, the rebound trend of Gucci should not be underestimated.

After experiencing "aging" and management changes, Gucci finally got out of the negative revenue growth.

As of June 30th this year, Gucci's sales grew by 4.6% in the second quarter, exceeding analysts' expectations.

Leather goods as

Licensed cash cows, opening clouds also give this category enough attention.

On the 27 day, Kai Yun announced the appointment of Grita Loebsack, formerly the Unilever global skincare executive executive, as the 6 emerging brand CEO of the "luxury fashion and leather goods department" Alexander McQueen and the Paris family.

China's performance in the spotlight

The luxury brands that had created two digit growth in China have been blocked in recent two years, and the impact of anti-corruption and Hongkong occupy almost all the reasons for the poor performance of every luxury brand.

The British brand Burberry, which released its two quarter earnings in July 15th, is still bogged down.

According to LVMH's report, revenue growth in the first half of Europe and the United States was 10%, while Japan was 8%, while other parts of Asia were in negative growth, down 5%.

Compared with competitors, Kai Yun has succeeded in getting away from China.

In the first half of this year, Gucci's revenue in China increased by 4% over the same period last year.

Jean-Marc Duplaix, the brand's chief financial officer, explained in a conference call that the main reason for the increase was the price reduction strategy implemented in Asia, and that the discount strategy in China also worked well.

Gucci offers nearly 50% discount to Chinese consumers to help clean up inventory left during the previous creative director.

In order to cope with the decline in both the number of tourists to Hongkong and the demand for consumption, Gucci's plan is similar to that of Burberry, aiming to save costs from the rental of store rentals.

It is different from the price adjustment and discount of Gucci.

As Chinese tourists flock to luxury goods such as Europe, Japan and other countries with lower exchange rates, LVMH has increased the price of European handbags by 3% in the first quarter since the beginning of the first quarter, and increased 5% in the second quarter.

This is more to suppress the spread of huge spreads.

Business.

The chief financial officer, Jean-Jacques Guiony, once admitted, "although you see customers in the store, you can't know whether he buys them for himself or sells them to China."

But LVMH is still not prepared to make adjustments to its pricing structure.

Guiony said: "the price of new products may be adjusted, but we do not have any adjustment to global pricing."

In his view, for luxury brands, price adjustment is meaningless, and this will lead to brands unable to resist fluctuations in exchange rate.

Development of major categories

LVMH's fashion and leather goods department has a good form, and Fendi, Cline, Givenchy and Kenzo have increased to varying degrees. Marc Jacobs and Donna Karan have declined significantly because of the brand positioning adjustment. Revenue in the first half of the clock and jewelry sector rose 22.6% to 1 billion 552 million euros (10 billion 640 million yuan); the organic growth and actual growth of the perfume and cosmetics sector were 6% and 17.4%, respectively, from 1 billion 839 million euros in the same period last year to 2 billion 159 million euros; and the revenue of the retail sector composed of Sephore and duty-free Duty 21% increased 21%.

Although the wine and spirits sector, which is still in negative growth during the first quarter, rebounded in the two quarter, but the income growth in the first half of the year was only 2% in the Greater China market.

Kai Yun's Bottega Veneta and Saint Laurent revenue grew by two digits.

As always, Puma dragged the group back: its operating profit fell 42.5% in the first half of the year.

From the comparison of the above several points, do you think the two are very different?