Is Chanel Really Fantastic?

A few days ago, news of Chanel's (Chanel) profits rose 38% in 2014 was blown up in the luxury sector.

Before this, another luxury giant MOET & CHANDON Hennessy LV group LVMH Mo t Hennessy Louis Vuitton SA reported its profits in 2014 for the first time in 5 years, down 5%.

In this case, Chanel (Chanel) actually profits rose 38%, let people can not help but ask a question mark.

On the whole, in 2014, MOET & CHANDON Hennessy LV group (LVMH Mo t Hennessy Louis Vuitton SA) and Hermes International (Herm s International SCA) did not earn more than 10% in fiscal year 2014, while Hermes International (2014) increased by 6.7% in real terms, but MOET & CHANDON, Hennessy and LV group declined. Although the two luxury giant's earnings report does not represent the trend of all luxury brands in 2014, we can see that at least 2014 the overall trend of luxury industry is not rising.

Of course, in 2014, there was a 30% increase in revenue. Valentino (Valentino)'s 2014 financial report showed that last year the group achieved a 36% expected high revenue growth.

But because of the financial data of Valentino (Valentino), there is no way to pick it out.

But according to Bain Consulting's 2014 research on luxury goods market in early 2014, Chanel may not be so smart.

The report said that in 2014, Chanel (Chanel) had 11 stores in China, which was half of the Chanel (Chanel) store period.

2014 is also true.

The luxury market showed negative growth for the first time, down 1% from 2013.

With the overall market shrinking, Chanel is unlikely to be affected.

Besides

The European market as the main battleground also suffered heavy losses in 2014. As Europe faced the challenges of continuing economic challenges in the 2014, the social and political tensions in Eastern Europe and the plight of the tourism industry, all kinds of luxury goods maintained only about 2% growth, and the overall performance was weak. Bain consulting also said that luxury sales materials slowed down in 2014, and the market growth rate in 2014 was only 5%.

From the above analysis, Europe and China are the two largest markets in the luxury goods industry, and the two markets in 2014 have been hit by different degrees, plus the whole 2014.

The market is not very prosperous, so Chanel (Chanel) claims that its profits rose by 38% in the 2014 fiscal year, which is very hard to convince.

Unless Chanel (Chanel) can come up with further data to explain how the 38% growth has come out, I am afraid we will remain skeptical about the data.