Gucci Enters Tai Koo Hui Luxury Market To Pick Up

Not long ago, Tai Koo Hui's largest store in Southern China, MontBlanc, was closed, while Italy's luxury brand Gucci took over.

In recent years, luxury goods have picked up in the Chinese market.

In the original MontBlanc Guangzhou Tai Koo Hui flagship store site can be seen, the wall has been comprehensive.

The latest advertising of Gucci is marked by Coming Soon, which is the largest store in South market in China, with an area of 557 square meters, which is divided into two floors.

After taking over, Gucci will become the four largest luxury brand store with LV, Hermes and Prada.

Gucci head of a market in China confirmed the news, but no specific opening date has yet been revealed.

According to Kai Yun group's first quarter earnings report, Gucci revenue grew 3.1% year-on-year, direct store sales grew 3%, retail and wholesale business grew.

Revenue growth has slowed compared with 4.8% in the fourth quarter of fiscal year 2015, but this is the first time that Gucci has achieved comparable growth for two consecutive quarters in three years.

Compared with the first quarter results of competitor LVMH group leather fashion business zero growth, Dior group zero growth, Burberry group fell 5%, Gucci rebound momentum is obvious.

As for MontBlanc, it will move temporarily.

About more than 30 square meters of temporary counters in Dongmen, the size of the shops has been greatly reduced. In fact, MontBlanc, a market giving priority to gifts, watches and other gifts, has been experiencing a sustained slowdown in the domestic macro-economic slowdown and the government's efforts to combat corruption. However, the brand does not seem to have made timely changes to adapt to the market.

Although MontBlanc's performance has improved in recent years, it has been difficult in Southern China.

In September 20, 2011, MontBlanc special store opened in Tai Koo Hui. Its opening guests were international superstars Nicholas and Tang Wei. At that time, there was no two in the limelight. At that time, no one would have thought that less than 6 years later, the staff of this store would be reduced from 30 to 8.

In May 2015, media reports reported that MontBlanc might withdraw from Guangzhou's Tai Koo Hui, which is the first time that luxury brands have withdrawn from Tai Koo Hui.

Earlier, Tai Koo Hui made adjustments to the two tier and one tier brand. According to the analysis of the industry, MontBlanc's withdrawal from the flagship store means that Taigu Hui is reexamining the performance of luxury brands in the domestic market, especially in the Southern China market. Under the current market environment where luxury consumption is not good, people who are unable to bring flow or poor performance may be eliminated.

In addition,

The famous brand of the brand parent company is facing the upheaval problem caused by the excessive undervaluation of the market environment, especially when China's regional challenges and the booming Hongkong watch market are in trouble.

At present, MontBlanc accounts for 6% of the total sales of the group.