Light Luxury Industries Are Unable To Make Ends Meet, And Many Brands Sell Down.

The roller coaster is rapidly diving down.

In 2014, investment bankers in Wall Street were also very optimistic about the luxury industry. Only a year later, the bubble was easily destroyed.

The overall performance of light luxury industry is sluggish, and a number of iconic brand sales data have fallen off the cliff. Investors are looking at or reducing the ratings of light luxury brands.

This change is too fast.

"Light extravagance is a false concept. Its characteristic is" go up and down quickly. "

Zhou Ting, the president of the Institute of wealth and quality, told reporters that the traditional luxury goods represented by LV, Gucci and Cartire are accelerating pformation, or developing to high-end high-end products, or turning to high-end lifestyle. Instead of the "follow" path of light luxury, the market space has been squeezed, and the concept of light luxury is gradually disappearing.

The big three roller coaster

In fashion circles, the definition of light luxury is relatively vague. Those big brands of sub line brands, or brand names that are more popular than those of LVMH, Kai Yun, and Li Feng Group, are defined as light luxury brands.

However, fashion experts agree that Coach, Michael Kors and Kate Spade are the three biggest luxury brands because they were in the previous round.

The growth of these three brands is quite bright when they grow.

In the first quarter of 2016 fiscal year ended September 26th this year, the company's net sales in Coach quarter were $1 billion 30 million, down 1% from the same period last year, which is higher than the 2015 US $fourth in the 1 billion quarter, mainly due to the rebound in sales in China.

In the first two years of rapid growth, Coach also experienced rapid growth.

For example, the two quarter of 2013, Coach revenue growth of 4%, the three quarter growth of 7%, but then, Coach's performance continued to slack.

Michael Kors as of September 26th this year, the 2015 quarter of fiscal year two quarter earnings showed that the group's revenue in the quarter was $193 million 100 thousand, down 6.7% from 207 million in the same period last year.

The change in Michael Kors seems to be the fastest. As of December 27, 2014, the 2014 third quarter financial report also showed that revenue increased by 32.2% to 303 million 600 thousand US dollars over the same period of 229 million 600 thousand US dollars in the same period in 2013.

The most brilliant achievement in the history of Kate Spade is that sales in 2014 increased by 42% compared with 2013. But it also experienced a similar situation with Coach and Michael Kors. At present, the situation of Kate Spade is better than the other two light luxury brands, because its 2015 third quarter financial report shows that sales rose 10.7% to 277 million 300 thousand US dollars compared with the same period last year.

Liu Yuan, an investor in cultural and creative industries, argues that, unlike the core consumers of luxury goods in the old world, the Coach, Michael Kors and Kate Spade represent less luxury. The target consumer group is younger and has limited wealth accumulation. Compared with consumers, they are "price sensitive" consumers. They are more likely to tighten their budgets and reduce such non rigid consumption in the overall global economic downturn. This is one of the reasons for their declining performance.

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Accelerating bubble burst

The collapse of light extravagant bubbles is not only caused by its own factors, but also by the environment of the industry.

Zhou Ting said.

Fashion designer Amy often travels to the world's four fashion week, to which designer and designer of every latest design clothing and leather goods are all familiar. She told reporters that compared with the big designers of Marc Jocobs and Karl Lagerfeld, the luxury designer style is always "swaying".

If Logo is covered with a package, the most likely mistake recognition probability is these lightweight luxury brands, "because each bag is more or less" copied "big design.

Amy said.

Another reason is that there are more discount and more intensity in light luxury.

The wealth and quality research institute "2015 China luxury report" shows that this year the Chinese traditional luxury goods

Continue to suffer heavy losses, and Oteri J and online shopping become the biggest growth point.

Unlike LV, Cartire and other traditional luxury goods management strategies, Coach, Kate Spade, Michael Kors these light luxury goods, once a favorite of outlets, almost all the outlets have these brands.

Consumers who are originally extravagant consumers are very sensitive to prices, which has led to more young consumers going to outlets only to buy discounted luxury products. "This will give them more pleasure and sense of achievement in shopping, because they spend less money on products that are desirable."

Liu Yuan said that the traditional Luxury Retailing industry has been depressed for two years, and the strength of these brands in the outlets and the increase of brand discount have further accelerated the maturity of the purchasing behavior of luxury consumers.

In recent years, consumers have become more and more clear about the essence of "dream pricing" of luxury goods. They will not pay for the higher brand premium, forming a kind of inertia thinking, that is, wait until the brand discount is bought, because that is the rational price of commodities, which makes the growth of light and extravagant revenue and profits hindered.

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And in the industry environment, the traditional luxury goods industry is constantly exploring, and fast fashion brands are also snatching light luxury consumers, making light luxury become a "sandwich layer", and the days are even more sad.

Most consumers believe that the real luxury goods are customized products. The Institute of wealth quality predicts that the customization will be implemented in all directions in the next 3 years. The traditional luxury brands are increasing the intensity of customized products, while the bulk products will gradually pform to lifestyle products, and the original location of vague luxury will lose their positioning.

"Next, the light bubble may burst faster."

Liu Yuan said.

Industrial pformation and self rescue

Operators of light luxury brands, perhaps earlier than Wall Street's investment bank analysts, have come to realize that the "light and extravagant crisis" is coming, and have begun to pform to deal with such a crisis.

High inventory, let the light extravagant choose the way through discounts and the outlets of the outlets, consumers get the benefits, but it is precisely because of this, the brand value has been seriously diluted.

Fifth Avenue luxury goods network CEO Sun Yafei told reporters that Coach has strict control over the global channels. Apart from the direct channel, the only channel is otalis, but Coach's announcement shows that the number of stores in North America outlets has been reduced from 207 in fiscal year 2015 to 204. In the past, the number of outlets outlets of the brand has been growing at an annual rate of more than ten.

"The design of Coach looks much better than before. There are several new packages this season. I like it very much."

A reporter's friend said she used to miss Coach's design very much.

The road is younger, but the design is very old.

The reason for this is that Coach hired the new creative director Stuart Vevers, a designer from Loewe.

At least the design changes have attracted many consumers to re value Coach.

Kate Spade also said that the discount will be reduced in the future. At the same time, swimsuits, children's wear and other new product lines will be developed.

These accelerated changes may ease the urgent need of the brand, but insiders believe that such a pformation still fails to solve the embarrassing situation of the "sandwich class".

With the original brand effect and sensitivity to fashion, the pformation to high-end consumer goods will be the only way out.

"This is a kind of product that is more popular than light extravagant, more repetitive and more cost effective," Liu Yuanru said.