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    Several High-End Luxury Brands Are Also Happy To Have A Few Worries.

    2015/11/17 22:10:00 29

    LuxuryBrand StrategyPerformance

    Luxury groups have released their first half financial results, mixed with mixed feelings.

    According to an article entitled "powerful man" Ma and "fake terrorists": how Alibaba should deal with greedy brothers and angry thieves, Ma said he would never reconcile with Kai Yun group. "I would rather lose this lawsuit than lose money, but we will win dignity and respect."

    It is absurd to sell Gucci so expensive, "we must reflect on our business model".

      

    Burberry

    Third quarter sales improvement

    British luxury brand Burberry said Thursday that its sales in the third quarter have improved compared with the second quarter.

    The company's second quarter sales were affected by the slowing market in China and Hongkong.

    Burberry is famous for its windbreaker and cashmere scarf.

    The company also recorded a 3% profit in the first half of this year, higher than expected, thanks to cost reduction.

    Burberry's sales growth in the first half of last month was lower than expected. The company warned that the luxury industry is facing growing challenges, especially in the Chinese and Hongkong markets, which has led to its stock price falling to its lowest level in three years.

    In the first six months ending September 30th, the company recorded a pre tax adjustment profit of 153 million pounds (1 billion 480 million yuan) and operating income of 1 billion 110 million pounds (10 billion 735 million yuan).

    The final profit is 147 million higher than the market expected.

    Christopher Bailey, chief creative officer and chief executive officer, said: "this strong performance reflects the role of decisive measures, because the external environment becomes more challenging in key markets".

    He said the company is "confident in its unprecedented strong holiday sales plan and highlighting productivity and efficiency".

    Due to exchange rate fluctuations, the company now forecasts that the 2015-16 retail / wholesale profits will not be substantially profitable in the whole year, and the company's previous forecast is 10 million pounds and profits.

    Burberry's share price fell 1/4 in the past half year, and it was 1 335 pence in the closing times on Wednesday, and the company's market value reached 5 billion 900 million pounds.

      

    Kenzo

    Marching into the US market

    LVMH group's brand Kenzo opened its first electricity service in the United States for the first time, covering the whole United States, and Kenzo has already opened its e-commerce service in Europe.

    Kenzo's creative director, Carol Lim and Humberto Leon, said: "since we joined Kenzo, the company has attached great importance to the development of e-commerce. It is considered that the electricity supplier is a very important part of brand development.

    Consumers in Europe have responded very well to our electricity supplier service. They developed very fast and established a strong and loyal consumer group. The electricity supplier gave us Kenzo a good development platform.

    In view of the good development mode of the European market, we believe that Kenzo can enter a brand new US market.

    Carol Lim and Humberto Leon are the founder and owner of the fashion brand Opening Ceremony, which is headquartered in New York.

    In 2002, Carol Lim and Humberto Leon founded the first Opening Ceremony store in downtown New York. At first, it was a very ordinary buyer shop, selling products from all over the world. Their outstanding taste quickly attracted all kinds of celebrities. After 13 years, Opening Ceremony has already owned four stores in the world. There are two stores in New York, one in Losangeles and one in Tokyo.

    Their own brand Opening Ceremony has also developed very successfully. Although it has not been running for a long time, many classic single products have been launched.

    Industry analysis and comment, Kenzo did not set up stores in the United States. If Kenzo wants to share a slice of the US market, the electricity supplier is the best development opportunity for Kenzo.

    The company said that Kenzo.com has adjusted the content of the web page to better integrate the brand connotation, the website product will be updated two times a month, and there will be tailored customized experience service.

    Carol Lim and Humberto Leon say the company wants to expand the e-commerce market and will create a powerful online experience service platform and make it more convenient for consumers to buy our products.

    In mid October, another luxury brand, Gucci, said that e-commerce services were first launched in the United States, because the US market is the biggest contributor to the company. According to the data, the attention of electric providers is the highest in the US.

      

    Summit group

    It will be difficult.

    The group's performance in the second half of this year is worrying.

    According to the latest report from London, the profit growth of the first half of the group has increased by 22%, but it will be difficult in the second half of the year.

    In October, the turnover declined by 1% in the Asia Pacific region and the low growth rate in Europe and Japan.

    The fall in turnover in October, based on the real exchange rate, fell by 1%, which was 6% on a constant exchange rate basis, which caused panic among investors.

    The group's share price fell 8.2% to 79.50 Swiss francs per share.

    In the first half of this year, the peak turnover increased by 14.7%, mainly benefiting from the surging growth of the group's self owned stores and jewelry category.

    Among them, jewelry category currently occupies 1/3 of the group's turnover.

    The company is facing a decline in demand in the wholesale sector, mainly due to the decline in watch sales in the Asia Pacific region.

    A data message worth noting is that Swiss watch exports fell by 7.9% in September. Due to the continued weakness of Asian economies, the Swiss watch industry is undoubtedly a major blow. Asia is the most important market for Swiss watches, with exports accounting for more than 50% of the total export volume.

    According to the Swiss Watch Industry Federation, the Swiss watch exports totaled 1 billion 800 million Swiss francs, or about $1 billion 850 million.

    At present, there is no sign of improvement in sales in Hongkong, with a drop of 18.2%, while in mainland China, 13% and 17.6% in the US, and sales in Singapore, UAE, Korea and Taiwan have also dropped sharply.

    The Federation said that in September this year was the most serious monthly decline in five years. This negative impact has spread to markets outside Asia and is expected to be unoptimistic at the end of 2015.

    During the reporting period, the company's profit was 1 billion 100 million euros ($1 billion 220 million), of which 22% gained from better currency exchange rate trends, as well as cost control and price adjustment.


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