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    The Slow Growth Of Luxury Goods Industry Is Deteriorating Again.

    2016/4/18 12:41:00 38

    FashionBrandLuxury

    LVMH group CEO Bernard Arnault said on Tuesday.

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    The total turnover of Christian Dior is likely to exceed 5 billion euros ($5 billion 630 million) this year.

    However, the Dior fashion department, which has always been strong in its performance, is showing signs of losing momentum.

    Bernard Arnault said at the annual shareholders' meeting in Paris: "the overall turnover of Dior has become quite important, and it may exceed 5 billion euros in 2016."

    Last year, the Dior fashion department grew into the club with annual sales of 2 billion dollars.

    Earlier reports

    Luxury goods

    The slow growth of the industry has deteriorated again. LVMH group said its fashion leather products including LV, Dior, Givenchy and Celine were stagnant in the first quarter.

    However, in terms of perfume and cosmetics, the organic growth of revenue in the first quarter of 2016 was 9%.

    Christian Dior benefited from the success of Sauvage and logo perfume J'adore and Miss Dior, and gained strong growth results.

    The Dior fashion department, which belongs to the LVMH group, released its financial report on Tuesday. The company's turnover fell by 1% in the first three months to March 31st, and it recorded 429 million euros, which was mainly affected by the weakness of several Asian markets.

    In the same period last year, the turnover of Christian Dior fashion department rose 20%.

    In the three months ending last December 31st, the turnover of the company increased by 12.1% to 490 million euros, and organic growth maintained a 4% growth point.

    Obviously, the Dior fashion department recorded a negative growth in the latest quarter, indicating that its performance has begun to fall into a downturn.

    In recent years, the strong performance of Dior's fashion department has been in sharp contrast to that of Burberry and its parent group LVMH's LV.

    Most of these luxury brands come from Chinese and Chinese consumers, but revenues are falling.

    However, Dior began to slow down in the first quarter of 2015. Some industry analysts said that it was mainly affected by China's economic slowdown, stock market turmoil and the persistent anti-corruption policies of the Chinese government, plus the shock of the design department brought about by the departure of former director of art Raf Simons. At least now, the Dior fashion department has not found any countermeasures to maintain growth targets.

    Christian Dior CEO Sidney Toledano has repeatedly suggested that modern women's passion for women's garments designed by former art director Raf Simons is an important contributor to brand performance.

    Christian Dior, who is secretly searching for the next creative director, is now relying on the entire internal team to design its women's clothing series, mainly led by studio leaders Serge Ruffieux and Lucie Meier.

    In terms of top management team, in order to strengthen the group's men's clothing business, Christian Dior has appointed the No. 2 Serge Brunschwig of the company as the president of Dior Homme.

    Sidney Toledano said in a media interview last year that Dior will pay more and more attention to the Chinese market, but acknowledges that China's luxury consumption is slowing down.

    South Korea, China and Japan become the iron triangle matrix of Dior Asian market. Dior Asia's largest flagship store opened in Seoul last June, and Dior's new flagship store opened in Beijing at the end of last year.

    The industry has analyzed the Dior's counter trend to prove that China is still one of its most important markets, but now it looks very difficult. The next art director of Dior is still unknown. So the performance of Dior in the next year may be unknown.

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