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    Luxury Brand Asia Pacific Market Performance Is Poor

    2016/2/27 11:35:00 30

    Luxury BrandsAsia Pacific MarketPerformance

    Hermes recently released 2015 fiscal year results show that the group's year-on-year revenue grew 8.1% to 4 billion 841 million euros, compared with the 2014 quarter of fiscal year 11.1% slowed down.

    Among them, Asia Pacific revenue growth from 13% in fiscal year 2014 to 5%, the growth rate slowed down significantly.

    Despite slowing growth, Hermes has maintained growth, but Prada is not so lucky.

    According to data from Paris bank, from China

    Consumer

    Revenue accounted for 35% of Prada's revenue, and its dependence on the Chinese market, which was selected from Hongkong in 2011, is evident. Therefore, the performance of the Asia Pacific market has greatly affected its industry performance.

    Prada's initial sales in the 2015 fiscal year ended January 31, 2016 showed that its revenue dropped by 0.2% to 3 billion 545 million euros from the Asia Pacific market, which has declined for two consecutive years.

    Although Prada stressed that the Chinese market had improved in the four quarter, the Asia Pacific market (excluding Japan), which dominated the Greater China region, fell by 16% compared with the same period last year, or more than 2014 in the 2014 fiscal year.

    According to Bain consulting, in 2015, Prada opened only 3 stores in China, less than half of its 2014 sales plan.

    Last year, faced with the overall downturn in the Greater China market, a number of luxury brands including Chanel and Gucci took the strategy of lowering the market price of the Greater China region and coordinated global pricing. At that time, Hermes was one of the few brands that openly opposed the strategy, and indicated that it would continue to implement the previous annual price increase strategy.

    The performance data released from this time show that this strategy and the effect of further enlargement of the exchange rate fluctuation have adverse effects on it.

    The industry expects the impact will continue, and Hermes has adjusted its revenue growth from the top 10% to 8% this year.

    And when luxury brands are in

    Asia Pacific Region

    When the performance fell into a slump, the luxury brand moved forward all the way.

    The annual report released by Italy light luxury brand, as of December 31, 2015, shows that group revenue grew by 30% to 339 million euros, a 23% increase over revenue, and a 126% increase in revenue in the past five years.

    One of the most important driving forces is the growth of sales in the Asia Pacific region (excluding Japan), which is 53% year-on-year, which now accounts for 19% of the overall sales of FRA, especially in the Chinese market. The growth rate of the sales in the Chinese market is as high as 78%. Not only this, but also 41% growth in the same period.

    Industry analysts pointed out that this benefit from the early morning of Fu LA's attention to the Chinese market and maintain expansion.

    As early as 2013, flah set up a joint venture with the Hongkong Feng's group, opened the road to expansion in China, and planned to open 100 boutiques in the Greater China area, which is expected to make China the largest market in five years.

    Furla

    Eraldo Poletto, chief executive, said that the rise of the middle class in Asia, the weakness of luxury goods and the increasingly mature shopping mentality of consumers have promoted the development of Fu La and even the whole luxury industry.

    The performance of light luxury industry has also made the luxury magnates feel "hot". They have begun to adjust their strategies, and some of their brands and product lines have been positioned.

    A few days ago, Mark Jakob, the brand of LVMH group, announced that it would mainly focus on less than $500 from this year, focusing on leather accessories.

    Previously, the group's watch brand Tigo Hoya has tried to brand positioning, positioning the production of 1500-5000 Swiss francs products, last year, the brand also lowered the price of some of the world's products.

    Zhou Ting, a luxury goods industry expert, believes that the core of luxury price is brand premium. In the increasingly sophisticated consumer behavior market, the luxury industry has gradually developed into a mature market with sufficient information. This means that the industry will enter the recession directly from the growth period of profiteering.

    People in the industry expect that in the coming years, more and more luxury goods will be pformed into the concept of luxury, or the brand of secondary lines will be created. Some big brands will face a wave of price cuts. The parallel space of light luxury brands will face more intense competition.


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