Chengdu Luxury Stores Are Just The Tip Of The Iceberg.

In just a few months, luxury brands such as Dior, Gucci, Fendi, Hermes, Cartire, Bvlgari and other international brands have been withdrawn from shops, or evacuated from Chengdu, or another new home in Chengdu.

What is interesting is that the shops that these luxury brands have removed are located in the core of Chengdu's Chun Xi business district, where Dior closed its store in Chengdu's renhang land Plaza late last year.

Chengdu Renhe Spring Department store has removed all the goods.

In fact, luxury goods have been hit hard in the Chinese market in recent years. Now, blindly expanding luxury brand stores now also choose to reduce stores or slow shop plans.

Behind this, the sharp decline in purchasing power has led to a sharp decline in performance.

According to public information, Kering, a luxury luxury group in France, pointed out in its third quarter earnings report of 2015 that the total revenue of the group rose by 12%, but the Gucci brand income that accounted for 1/3 of total revenue of Kai Yun group dropped 0.4%.

Among them, Asia Pacific revenue fell 17%.

China

Sales are still weak, and sales in Hongkong and Macao are deteriorating.

Italy luxury group Prada declined net profit in the 9 months ended October 31, 2015, with net profit of 235 million euros (US $258 million 100 thousand), down 26.4% from the same period last year, and operating profit of 373 million 900 thousand euros (US $410 million), down nearly 25% from the same period last year.

From 2015

In the market performance, it is easy to see that only a small number of luxury brands achieve profits, most of the brand performance is showing a downward trend.

The most direct impact of the decline in performance is that the group will reduce the number of stores and postpone expansion to reduce losses.

The Burberry group's retail sales in the first half of 2015 increased by only 3.5%, which was seen as the most negative year-on-year turnover since the third quarter of 2009, which is the worst performance in 6 years.

German Hugo boss Hugo Boss group's third quarter net profit fell 23%, Hugo Boss in the third quarter revenue grew 4% to 744 million 100 thousand euros, fell serious areas including the Americas and the Chinese market.