Hugo Boss Releases Earnings Warning: Men'S Purchasing Power Is Not As Good As Women'S.

Men's purchasing power is not as good as that of women.

Germany's Hugo Boss AG (BOSSn.DE) Hugo Bos group recently issued a profit warning, saying that China and the US market, which began to deteriorate in the three quarter of the year, are still deteriorating so it is estimated that the 2016 fiscal year.

There will be a drop of more than 10%.

Hugo Boss has not yet announced its profit in the 2015 fiscal year. However, the fourth quarter results released in mid January showed that the situation in China and the United States remained severe in the middle of this season, maintaining double-digit sales decline, resulting in a decline of 7% and 1% in Asia and the Americas respectively (RMB and US dollar), but thanks to the strong performance of Europe, especially in the UK and southern Europe, the group continued to grow at 5% fixed exchange rate, but only 0.5% of its operating profit was far higher than that of 3%-5%.

The company said in its earnings warning this week that the group's retail business in China and the United States has been worse than expected so far in 2016.

There is no separate data showing the sales situation of the company in China, but reporters learned from the relevant agencies that the number of Hugo Boss stores in 2015 reached 11, and this is also the largest number of luxury brands in China.

"China has now become the" worst hit area "of many luxury brands, and now these brands are in a quagmire of slow growth and even retrogression.

A luxury industry practitioner pointed out, "of course, this may be attributable to their rapid growth in China."

In order to cope with the downturn,

The group gives several adjustments.

According to the channel, the company now has three retail, wholesale and online.

It is reported that the company will continue to restrict the distribution of BOSS core brands in the US wholesale channel to avoid the negative impact of the local high discount market environment.

In terms of pricing, the price of Asian market will be lowered to a level close to that of Europe and America.

The price adjustment strategy is more than Hugo Boss.

In fact, in order to overcome the impact of economic downturn and stimulate consumers' enthusiasm for buying, many luxury brands began to seek change.

"Growing forces also force the luxury industry to solve the global problem.

The problem. "

Bruno lano said.

According to Bain's research, if the difference is less than 20%, half of the consumers can accept it, but once more than 30%, people tend to look for other ways to buy it.

As a result, the global price adjustment has become a key measure to deal with purchasing and purchasing offshore.

Although in order to maintain the brand image, luxury goods often do not like the word "discount" in stores.

But in 2015, Chanel took the lead in implementing this strategy.

The veteran luxury goods company has announced a 20% reduction in classic products. After that, GUCCI began to promote sales in the national stores, and more than 2/3 of its products fell by more than 50%.

Such marketing behavior is too intense for some "conservative" luxury goods industry.

But the result of the price reduction of these two brands is remarkable results: there is a long queue at the front door of the shop, and customers rush to buy their favorite products in the store.

This is a rarely seen scene in the luxury stores all day long: Sales of goods on shelves are empty.

Since then, after the performance of Prada in the third quarter of 2015 (up to October 31, 2015) is still declining, the "pain relief" has released a strategy to save its performance. In addition to reviewing its development and further reducing its costs, it will also introduce global coordinated pricing and increase the price of the European region.

The company gave the specific goal of narrowing the gap between 35% of the current European and China prices to 10%-15%, thereby keeping Chinese customers in local consumption.

Besides, in order to stimulate sales growth, various brands in the industry are also making adjustments in brand repositioning, store setup, e-commerce and digitalization.

In the face of the rapidly changing luxury market, brands have never taken the initiative to please consumers.

Luxury goods are expected to have no major fluctuations in the macro environment in the future, and the rising middle class will become more sophisticated and better aware of luxury goods.

Undoubtedly, leading brands have led the global price adjustment has become a major trend in this industry.

In the 2015 annual China Luxury Market Research Report released by Bain, in 2015, the luxury market in the mainland of China was 113 billion yuan, down 2% from the same period last year.

This is China's luxury market overall decline for the second consecutive year.

Reporters noted that in this report, women's clothing, jewelry, cosmetics, perfume and other products showed an increase of 10%, 7% and 5%, but men's clothing and watches were the worst hit areas, down 12% and 10% respectively.

Bain Bruno, a global partner of the company's report, explains that "this is because the follow-up effect of combating corruption and advocacy is not over yet, as well as the huge impact of slowing economic growth and the stock market crash in the two or three quarter."

This also proves that women are the loyal fans of luxury goods, while male consumers are more likely to abandon them.