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    Luxury Products Continued To Decline In 2015

    2015/12/11 9:02:00 58

    Luxury GoodsLuxury BrandsInternetE-CommercePformation

    In 2015, the continued growth of luxury goods has slowed down or even declined. The Asia Pacific region dominated by mainland China, Hongkong and Macao is a headache, and a wave of closing stores has broken out.

    It has always claimed that it will not touch the net and maintain its appreciation.

    Luxury brand

    They began to try to lay down their body and embrace the Internet.

    Status quo

    Asia Pacific performance decline

    Performance dragged behind

    76% of Chinese luxury goods are purchased overseas.

    Sideline establishment

    This year, most luxury brands are not optimistic in their performance, especially in the Asia Pacific region.

    The devaluation of the euro, the restriction of "three public" consumption and the popularity of overseas travel have made the performance of luxury brands quite weak in the Asia Pacific region, especially in China's Hongkong and Macao regions.

    The proportion of Chinese consumers consuming luxury goods overseas is further expanding.

    Luxury brands are also starting to look for growth in China.

    In the first three quarters of this year's earnings report, Gucci achieved a positive growth in the two quarter, and only from the strength of China's depreciated sales and the depreciation of the euro. In the first quarter, Prada's sales in the Greater China region dropped 19% compared with the previous year after excluding currency factors.

    In the first half of 2015, Prada group net profit decreased by 23% compared to the same period last year.

    In the first half of September 30th, boboley declined in the same store sales in the Asia Pacific region, and net income decreased by 2.1% compared to the same period last year.

    The decline in performance is partly due to the rise in the proportion of luxury goods consumed by luxury goods consumers outside China.

    The "2015 China luxury report" released by the Institute of wealth quality shows that in 2015, the external consumption of Chinese consumers grew by more than 12% over the same period, while 78% of Chinese consumers' luxury consumption occurred overseas, and the situation of consumption outflow increased further.

    In the case of a sharp downturn in the main business, luxury brands have tried to do sideline business this year.

    This year, LVMH group and Gucci have opened restaurants in China. Prada has acquired 80% of PasticceriaMarchesi in the pastry shop.

    Frequent change of executives

    Cold sale

    Designers save brands

    Industry management is more difficult.

    The luxury brands of flourishing Taiping are facing the turmoil of executives when they are declining.

    This year alone Gucci experienced a number of personnel changes, Gucci CEO PatriziodiMarco and creative director FridaGiannini both outgoing; Dior women's creative director RafSimons announced resignation; AlexanderWang, the creative director of Paris family, left office.

    Whether the executives' turbulence or the change of creative director will undoubtedly make the future development of the brand unknown.

    Following the resignation of chief executive BrunoGuillon last March, the old leather

    Brand

    After a year of embarrassment without CEO.

    {page_break}

    BrunoGuillon once worked in Hermes, and the intention of BrunoGuillon is also hoping that he can reshape Michael marey into another high-end small Hermes.

    However, contrary to expectations, Mai Rui, who was originally extravagant, raised the price of the product to 1000 pounds, resulting in a sharp drop in sales and an early warning of profitability.

    EmmaHill, the creative director of product design, resigned on 2013 because of his disagreement with Guillon, which made the company's operation worse than ever, leading to the collapse of share price and a total decline of 68%.

    However, some industry analysts believe that although the designer's role in brand development is still important in the fashion industry, the impact on brand sales is getting weaker and weaker.

    People in the industry believe that apart from good design, brands need to be able to let consumers accept and integrate as soon as possible, which requires a large number of marketing tools to cooperate.

    Luxury business pformation

    Frequent financing

    Rarely authorized

    Reduced to "grocery store"

    In the first half of this year, the luxury goods, which experienced a long period of cold winter, have announced a large amount of financing.

    Xiu Xiu net completes the C round of financing; the treasure net obtains the A round of financing; the temple library network obtains the E round financing; charm charm obtains Alibaba's investment.

    Although capital is good, the source of goods is still plaguing luxury electric providers.

    For a long time, luxury brands have been developing slowly in e-commerce because of maintaining brand image, protecting the interests of agents and domestic cooperation.

    On the one hand, they do not want to develop the electricity supplier, on the other hand, they are unwilling to authorize the electronic business platform.

    For luxury electric providers, the lack of authorization means that it is difficult to obtain high-quality goods, and the supply of goods is also more confusing, and fake goods are unavoidable.

    This also makes the luxury electric business once questioned.

    In terms of profits and prices, in order to attract tourists, luxury electric providers often can not set too high prices, and also need expensive advertising costs, which are difficult to secure profits, and they are also less advantageous in price than overseas businesses.

    However, this series of situations in the future will be changed.

    The Ministry of Commerce has recently indicated that the Ministry of Commerce will publicized the credit archives of the luxury websites in the future.

    Luxury brands embrace

    Internet

    The move also brings benefits to empowerment.

    Trend sheet

    Narrowing the difference between home and abroad

    Depreciate in China and raise prices overseas

    Profit reduction

    Buying and selling businesses decline

    Luxury brands, which only raise prices and do not cut prices, have adjusted their strategy in China this year.

    Chanel, the first-line brand, has cut the price of China in an unprecedented way, and has cut the price of its three major bag products by 20%.

    In addition, it also raised the price of the European line, the highest increase of 38%.

    After Chanel's price cut, the luxury brand collectively reduced its price in China.

    Dior, Patek Philippe, tiger Heuer and other luxury brands and top watch luxury brands have followed suit to join the price cuts. The highest price cut has reached 40%.

    It is still a trend for luxury brands to reduce domestic and foreign price differentials through price cuts.

    {page_break}

    Besides, luxury brands are also preparing for opening up network channels and affecting the pattern of luxury network channels.

    Luxury industry insiders believe that consumers who earn the difference between home and abroad will be affected by the purchasing agent and C2C mode.

    The price adjustment of luxury goods stores will squeeze profit margins from the price difference of the outlets.

    Before Chanel's massive price cut in China, luxury brands had put their future strategy on the outlets.

    And now the counters are cutting prices, which undoubtedly has a "crash" with the functions of outlets.

    Industry analysis shows that Oteri J is already a sunset channel rather than a sunrise channel in the luxury goods industry. Luxury brands can not be sold at low price in the long term.

    Embrace e-commerce channels

    Open network channels

    Authorized under the electricity line delivery

    Online and offline integration

    The power of luxury brands to the electronic business platform is particularly evident this year. Once, it said that the brand that did not set up the electricity supplier had opened shop online.

    Chanel officially launched the online sales of eyewear products in the United States, entered the electricity supplier, Cartire online online boutique, and returned to Tmall this year.

    The sale of luxury brands to e-commerce channels is actually related to the previous luxury brands' collective price cuts in China.

    The premise of the online platform for luxury brands is online and offline prices, but the price of luxury brands before sale is not a dominant factor in online sales.

    Luxury brands have chosen to cut prices in China this year, narrowing the difference between luxury goods at home and abroad.

    This means that purchasing overseas and buying overseas luxury goods solely for overseas travel are no longer attractive.

    In the context of the future luxury brands' further narrowing the price gap at home and abroad, more and more luxury brands have launched the online sales platform.

    In addition, luxury brand O2O attempts will also become a trend.

    Fifth Avenue luxury network has said that it will achieve the order of the network and the mode of picking up the brand stores.

    This also provides more imagination for the future integration of luxury brands and the Internet.

    In the future, more luxury brands will be sold synchronously online and offline, and online services will be enjoyed under the purchase line.

    Consumers can enjoy the online and offline integration of O2O experience.

    Initiating resource integration

    Closing benefits are not good.

    Closing secondary line

    Inter brand acquisition

    This year, luxury brands also started to shut down inefficient outlets in addition to slow down.

    Louis Weedon, the top luxury brand, has closed 3 stores in China, which has been completely evacuated in Urumqi; Tigo has closed its store in Tongluowan; coco closed its flagship store in central.

    People in the industry expect that international luxury brands will be further closed in the future.

    The era of widespread expansion is over. In the future, the number of stores will be reduced. At the same time, big stores and flagship stores will become the mainstream of luxury stores, and the functions of stores will be more diversified.

    Luxury goods brands have been shutting down and adjusting their sub line brands because of the slowdown in global luxury products and the unexpected performance.

    Boboli has renamed its subordinate line brand to Boboli; KateSpade has shut down a total of 31 stores of its subordinate line brands.

    In the future, the complex sub card has lost its meaning, and there will be more luxurious brands to adjust the secondary line.

    In addition, Hermes and Chanel began to buy supply chain companies this year; LVMH Group continued to buy other brands to enrich their own product lines.

    Brand sales will become the trend of the future, and more luxury brands will share or acquire other brands.


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