GUCCI, Relying On The New Designer's Products To Restore The Decline, Has No Obvious Effect Or Will Embrace The Public.

After the two quarter's growth was due to a discount strategy, GUCCI New designer's autumn and winter series of new products have been placed high hopes. However, can a good design save a brand? Kering's three quarter results have not been reflected. brand The apparent recovery has seen a 17% drop in the Asia Pacific region. Analysts believe that more needs to be done to restore the decline.

　　 Asia Pacific revenue plunge in the three quarter

According to the results released by GUCCI group last week, as of the three quarter of September 30th, GUCCI revenue was 924 million euros, accounting for 31.9% of the group's total revenue, an increase of 8.6% over the same period last year. However, excluding currency interest rates and other factors, the growth rate was -0.4%. Among them, Asia Pacific revenue fell 17%.

The decline in GUCCI performance began in 2013. The latest performance growth came from discount activities. In the two quarter of this year, GUCCI carried out a two month low season discount in the two months before the new creative director took office. The large-scale sales promotion was reflected in the GUCCI's two quarter earnings, and GUCCI's two quarter revenue grew 19.9% over the same period. Kai Yun group also acknowledged the benefits of discount activities for performance growth.

Fifth Avenue luxury goods network COO sun Duffy believes that the performance decline of GUCCI in recent years, in addition to the aging of the style, not much innovation, the domestic market price difference has become a more important factor. "GUCCI at least there is a difference between 20%-30% at home and abroad. The domestic price is too high for many consumers to go abroad. At GUCCI outlets in New York, many Chinese are buying GUCCI products. The Chinese have a certain purchasing power, but they may turn overseas. "

The industry is not optimistic about the sustainability of this strategy due to discounted growth in performance, so the new designer's new season's work has attracted much attention. GUCCI Chinese company official also admits that the previous season discount is also a preparation for the listing of new design works.

　　 The new design is well received.

In the northern inte Thai department store and China World Trade Center mall store, there are few LOGO handbags in the north. Instead, they are replaced by a simpler and more stylish and concise style. In the SKP shop, the clothing of autumn and winter has changed the color and style of GUCCI, which is more mature and colorful.

These changes show the way GUCCI is getting younger. In the context of discounts and narrowing of domestic and foreign spreads, brand customers will also change, and design has become an indispensable element of a series of changes. Taking the younger route has become the common choice of luxury brands such as FENDI and GUCCI. This shift stems from changes in buyers. Sun Duffy said that the "post-80s", "post-90s" and "00 after" are the main force of luxury purchases. They have higher brand acceptance and brand sensitivity. So they are Designer The demand is even higher. The era of money before LOGO is over. Designers must seize what young people like nowadays, and whether you want to convey whether they are welcome by young people so that they can occupy the market.

GUCCI staff at intime department store said, "new sales are good." GUCCI Beijing SKP store staff said that although the style of the former design director has been selling well, the new designer has sold better. GUCCI China World Trade Center Shangcheng store staff said that the sale of new products in the new season is comparable to that of the previous designers, because many new products need to be booked, so it can not be seen very clearly in this season alone. All the new orders will not arrive until the end of next January.

　　 Designers are not all drugs.

Without discount sales, can GUCCI rely on designers to restore the declining trend? In the past, there was a case where a good design succeeded in saving the fate of a brand, and even became a classic for decades. Today, however, it is even more difficult to copy such a story today.

Kai Yun group has much expectation for the work of the new creative director. Jean-Marc Duplaix, chief financial officer of Kai Yun group, said publicly that after the announcement of its three quarter earnings, the GUCCI brand is still in spanition, and the three series of new creative director Alessandro Michele have brought a good response. Although the autumn and winter series were listed only in mid September this year, the shops responded well. In addition, the 2016 early spring design of the new creative director has also won acclaim. T photos are constantly being reproduced in social media. It is undeniable that the Alessandro Michele, known as the Wizard Designer, has injected new vitality into the brand that once walked the mature route.

But the industry generally believes that although the product is still the core of luxury brands, designers alone are not enough to save a brand's performance.

Zhou Ting believes that although the designer's role in brand development is still very important in the fashion industry, the impact on brand sales is getting weaker and weaker. She said that the design of GUCCI's new designer did have a major breakthrough, and the market feedback was good, but it needs continuity. Consumers need to be able to accept and integrate them as soon as possible, which requires a large number of marketing tools. If we should increase the new media and digital marketing, speed up the construction of the promotion channel of e-commerce, we should try to break through the traditional stores, such as GUCCI opened a restaurant before. "This is the way to effectively reverse the line, and to expand more popular groups and new consumers."

Sun Duffy thinks that designers are very important. A good designer can help the company's performance. In addition, brand strategy, pricing, and whether the Chinese market is liberalized is also a key factor in performance growth.

For the future development of GUCCI, Zhou Ting said that if the product design and product quality have a major breakthrough, the appropriate marketing methods and e-commerce channels to integrate online and offline, and further adjust the price system, GUCCI brand will still have room for growth. "But from the pressure of income of listed companies, GUCCI should embrace the masses. So at the same time of growth, GUCCI is not necessarily able to maintain the positioning of luxury goods, it may become a fashionable brand.

Zhou Ting said that although GUCCI's performance declined this year, there are still some major breakthroughs this year and still need to give GUCCI a little time.