Will MK And Prada Be Reluctant To Push The New Market?

Handbag manufacturers are now busy dealing with the decline in demand for stores and the wave of discount discounts. Their original attention on "creativity" may be dispersed, and creativity is precisely the factor that guarantees their long-term success.

Edited company's data show that Michael Kors Michael (Kors Holdings Ltd.),

Prada SpA, Louis Vuitton under the LVMH, and Burberry Group Plc all reduced the number of push styles in the previous quarter.

New York

Consultant Milton Pedraza said that although manufacturers and retailers are worried about too much merchandise, lack of innovation will make it harder for shoppers to get excited.

"This industry is filled with disappointment, and everything is defending, but not advancing." Pedraza, who runs Luxury Institute, said, "you can only see a lot of copying, less and less innovation and creativity, and what you most need in this period is to go forward boldly."

Last year, the market was high-end for the US.

Demand for products was hit by a stronger US dollar and a slowdown in the global economy.

Fear of terrorism also inhibits the demand for tourism, which is one of the important sources of luxury consumption.

The market share of high-end brands has been affected.

Michael Kors, Coach Inc. and most other market competitors did poorly on the S & P 500 index.

Unsalable stock

During this holiday shopping season, many shops choose fewer handbags from several high-end brands.

In the last three months of 2016, the number of new products launched by Michael Kors fell by 24% over the previous quarter.

Customers including Ralph Lauren group and Edited company of luxury Net-A-Porter Net-A-Porter show that the new Prada and Louis Vuitton also reduce by 35% and Burberry by 8%.

Michael Kors did not comment on the new reduction. Lu Wei Hun Xuan and Prada declined to comment.

Burberry also declined to comment, although the brand said in November that it would "streamline" products and innovate customization for "local market demand".

But it is not easy to launch a suitable number of new styles.

Katie Smith, a senior fashion analyst at Branded, said brands need to balance their prudent choices between creating market oversupply and overstock (so-called "unmarketable stocks"), while ensuring that there are enough fashionable and fresh products to attract consumers.

"Too few new products will definitely threaten sales," she said.

Edited found that a large number of new brands such as Kate Spade & Co. and Ralph Lauren were launched in the fourth quarter of last year.

But many competitors try to survive the holiday shopping season and leave out innovation.

Fleeting tide

The fashion industry is an unpredictable industry, but handbag manufacturers rely on innovative traits to thrive, such as ultra mini packets, to attract shoppers' attention.

The less design you have in store shelves, the harder it is to hit the hot trend.

Over the past year, we have witnessed dramatic changes in high-level personnel in the luxury goods industry, or also affecting the launch of new products.

PVH group's brand Calvin Klein and Yves Saint Laurent all change their creative director.

Ralph Lauren CEO Stefan Larsson also reorganized management last year, including hiring former Coach chief financial officer Jane Nielsen to join the group in the same position.

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Handbag makers are also facing other challenges.

Young consumers hope to get the latest fashion trends, and consumers prefer shoes and jewellery products to handbags.

Messi's Macy (s) Inc. released a dismal holiday shopping season's financial results last week, partly due to poor handbag sales.

The largest department store in the United States also said it would cut 6200 jobs and plan to close 100 poor stores.

In terms of buying the best selling handbags in the market, Messi always did a lot.

Edited said that the most popular handbags accounted for only 8.7% of Messi's stock, while Barneys (Barneys New York Inc.) accounted for 33% and Nordstrom (Nordstrom) accounted for 20%.

"They didn't get the key products that could drive full - price sales," Smith said.

Discount frenzy

This allows chain stores and other retailers to rely on discount business to speed up inventory flow.

Instinet LLC analyst Simeon Siegel said consumers are now very used to and looking forward to buying discount products.

Edited's data also showed that Messi's department store discounted nearly 2500 handbags in the last quarter, while Neiman (Neiman Marcus) and Barnes Barney (s New York) also sold at least 900 products in New York.

"They need to find a way to work in this new normal [discount]," Siegel said.

According to the world clothing and shoe net, sales growth in handbags is expected to drop from 16% in 2012 to 3.1% before 2020.

The slowdown has prompted companies to diversify: Michael Kors is expanding into men's clothing, and Kate Spade is also expanding in other categories such as household goods.

This is not to say that handbag manufacturers have already raised white flags.

Coach is expanding the store experience through process services. Customers can design their own handbags at their Fifth Avenue store in New York, and also sign famous young actress and singer Selina Gomez (Selena Gomez) as the brand advertising spokesperson to attract the "millennial generation" consumers, and open the adjacent shops for Fifth Avenue shoe brands of Stuart Weitzman in 2015.

Luxury Institute's Pedraza said that the industry's grief has led businesses to take action.

"For the first time in so many years, there is a real sense of threat," he said.

The emphasis of every enterprise should be on "survival and breaking the old structure".

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