Opening The Cloud Will Not Rise In China.

Recently, the two largest French company.

The giant announced the performance report for the first six months of 2015.

The two scores are pretty close.

Kai Yun (Kering) and LVMH reported good news in July 27th and 28, two days: the first half of 2015 witnessed a surge in revenue.

In contrast, the Franois-Henri Pinaul's Kai Yun group was slightly inferior, with a sales increase of 8% (revenue of 5 billion 510 million euros, or 37 billion 820 million yuan), and against the LVMH group of Bernard Arnault, with an increase of 9% (revenue of 16 billion 700 million euros, or 114 billion 620 million yuan).

Among them, exchange rate fluctuations, such as the strength of the US dollar and the decline of the euro, have benefited many European luxury companies.

According to the earnings report, two French luxury goods groups are gradually coming out of the sluggish sales period.

What is the more effective way to get rid of it? We try to make a comparison from the following angles.

Its first card competition: LV and Gucci

LV has always been regarded as a cash cow of LVMH group. This time it has also failed to live up to shareholders' expectations.

Although LVMH has never disclosed its own performance according to the brand, LV has been the top card.

And leather goods accounted for more than 1/3 of the group's revenue, reaching 5 billion 900 million euros (40 billion 470 million yuan), an increase of 5% over the same period last year.

Among them, LV has made great achievements. The classic Monogram and new leather products have received high praise from the market, especially Chinese customers.

Jean-Jacques Guiony, chief financial officer of LVMH, said that the turnover of Chinese contributions to LV around the world surged by 10% in the first quarter.

As the main force of Kai Yun group

The rebound trend of Gucci should not be underestimated.

After experiencing "aging" and management changes, Gucci finally got out of the negative revenue growth.

As of June 30th this year, Gucci's sales grew by 4.6% in the second quarter, exceeding analysts' expectations.

As a cash cow for luxury brands, leather has also given enough attention to this category.

On the 27 day, Kai Yun announced the appointment of Grita Loebsack, formerly the Unilever global skincare executive executive, as the 6 emerging brand CEO of the "luxury fashion and leather goods department" Alexander McQueen and the Paris family.

China's performance in the spotlight

The luxury brands that had created two digit growth in China have been blocked in recent two years, and the impact of anti-corruption and Hongkong occupy almost all the reasons for the poor performance of every luxury brand.

The British brand Burberry, which released its two quarter earnings in July 15th, is still bogged down.

According to LVMH's report, revenue growth in the first half of Europe and the United States was 10%, while Japan was 8%, while other parts of Asia were in negative growth, down 5%.

Compared with competitors, Kai Yun has succeeded in getting away from China.

In the first half of this year, Gucci's revenue in China increased by 4% over the same period last year.

Jean-Marc Duplaix, the brand's chief financial officer, explained in a conference call that the main reason for the increase was the price reduction strategy implemented in Asia, and that the discount strategy in China also worked well.

Gucci offers nearly 50% discount to Chinese consumers to help clean up inventory left during the previous creative director.

In response to a double decline in the number of tourists and consumer demand in Hong Kong, the Gucci plan is similar to that of Burberry, and intends to save costs from Hongkong's shop rent.

Sensitive topic: price adjustment

It is different from the price adjustment and discount of Gucci.

As Chinese tourists flock to luxury goods such as Europe, Japan and other countries with lower exchange rates, LVMH has increased the price of European handbags by 3% in the first quarter since the beginning of the first quarter, and increased 5% in the second quarter.

This practice is mainly aimed at suppressing the "purchasing" business derived from the huge spread.

The chief financial officer, Jean-Jacques Guiony, once admitted, "although you see customers in the store, you can't know whether he buys them for himself or sells them to China."

But LVMH is still not prepared to make adjustments to its pricing structure.

Guiony said: "the price of new products may be adjusted, but we do not have any adjustment to global pricing."

In his view, for luxury brands, price adjustment is meaningless, and this will lead to brands unable to resist fluctuations in exchange rate.

Development of major categories

LVMH's fashion and leather goods department has a good form, and Fendi, C, line, Givenchy and Kenzo have increased to varying degrees. Marc Jacobs and Donna Karan have declined significantly because of brand positioning adjustment. The revenue of watches and jewellery departments rose 22.6% to 1 billion 552 million euros (10 billion 640 million yuan) in the first half of the year; the organic growth and actual growth of the perfume and cosmetics sector were 6% and 17.4%, respectively, from 1 billion 839 million euros in the same period last year to 2 billion 159 million euros;

Although the wine and spirits sector, which is still in negative growth during the first quarter, rebounded in the two quarter, but the income growth in the first half of the year was only 2% in the Greater China market.

The revenue of Bottega Veneta and Saint Laurent of Kai Yun has increased by two digits, while sports brand Puma has been dragging its hind legs as before: its operating profit dropped by 42.5% in the first half of the year.