Luxury Enterprises Are Exploring New Ways Of "Survival And Reorganization".

According to the world clothing shoes and hats net, the United States is light and luxurious.

Michael Kors, Italy

Brand Prada SpA, and French luxury magnate.

The group's flagship brand Louis Vuitton (Louis Weedon) and Burberry (Burberry) all reduced the style introduced last quarter.

In November, Burberry also said it would streamline its commodity mix and focus on local consumers.

In the past, luxury stores such as Nordstrom, Bloomingdale 's and BarneysNewYork have cut down the style of handbags that they sell in response to Christmas and New Year holidays, avoiding large discounts for sale.

Subsequently, luxury retailers began to reduce the launch of the novice bag series, instead of focusing on enhancing the identification of handbag brands to avoid giving consumers too many choices.

This ensures that the quantity of streamlined goods can be sold more at a positive price.

These retailers have found that innovation is the first element in order to achieve long-term success.

At the same time, these retailers are also faced with how to solve inventory problems, grasp current trends and discount promotions.

"Although many manufacturers and retailers still worry about the backlog of brand merchandise, innovative products are more attractive to shoppers," said the luxury goods industry.

At present, the industry is in a bad state, and the competition between brand and brand is fierce.

The goods that the consumer sees, most do not have their own personality, mass imitation, no creativity is the current disease of luxury brands.

Last year, the sale of high-end luxury goods in the US was seriously affected by the strong US dollar and the global economic crisis.

Tourism, as a major factor driving the consumption of luxury goods, has been severely defeated by terrorist activities.

As a result, the market share of many luxury brands has been affected, such as the US luxury brand Michael Kors, Coach and its competitors, who performed worse than the standard & Poor's 500 index (Standard&Poor 's 500 Index) in 2016.

Italy luxury brand Prada is an exception. Prada's sales in Hongkong last year rose by 9% over the same period last year, surpassing the growth of Hongkong's Hang Seng Index (Hang Seng Index) 0.4%.

Since its peak in 2013, Prada's share price has fallen by more than half.

In August last year, Carlo Mazzi, chairman of Prada SpA, predicted that the brand would grow again in 2017, so that the brand share price began to rebound.

On Wednesday, Prada shares rose 9.6% to HK $30.70 per share, the highest level since last March.

Inventory

During holidays and holidays, the number and style of many high-end luxury brands that are stationed in department stores are relatively reduced.

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

According to Edited data, the number of new Prada and Louis Vuitton decreased by 35% compared with the same period last year, and the number of new Burberry decreased by 8% compared with the same period last year.

Michael Kors, LVMH, Prada and Burberry declined to comment.

Katie Smith, a senior fashion analyst at Branded, said: "how to control the quantity and style of products is not easy for brand retailers.

Brands need to strike a balance between excess inventory and enough fashion to attract consumers.

But a reduction in the number of new products is bound to threaten brand sales. "

Last year, the US luxury brands Kate Spade&Co and Ralph Lauren launched new products in the fourth quarter, but in fact, most other brands chose to spend their holidays safely without new ones.

Elusive trend

As an unpredictable industry, handbag manufacturers only rely on continuous innovation to keep pace with trends.

For example, according to the prevailing fashion, the Mini Handbag should be launched to win the attention of consumers.

The reduction in the number of new shelves means missing the opportunity to follow the trend.

Over the past year, the personnel changes at the top of the luxury goods industry have also affected the launch of brand new products.

PVH Clavin Klein and luxury brand Yves Saint Laurent of the US fashion retail group have changed the creative director.

RalphLauren's chief executive, Stefan Larsson, also had personnel changes in the group last year, including the chief financial officer, Jane Nielsen, of Coach in September last year.

Handbag manufacturers are also facing other new challenges.

Compared with handbags, some young consumers are more likely to buy shoes, accessories and so on.

(pictured above: the luxury goods category of the millennial generation is only seventh. The categories are clothing, shoes, jewelry, watches, glasses, perfume / cosmetics, handbags, champagne, cars, Cognac brandy.

Last week, the US Department store operator Macy 's (Messi general store) released frustrating holiday sales results, partly attributable to bad handbag sales.

At the same time, the company said it would cut 6200 jobs and plan to close 100 poorly performing department stores.

Edited data show that the handbags that conform to the current fashion trend account for only 8.7% of the total volume of Macy 's handbags.

In contrast, these popular trends in New York department store Barney 's amount to 33%, in Nordstrom department store 20%, Macy' s missed the opportunity to sell hot products at full price.

Discount Carnival

"Discount" is the best opportunity for these chain stores and brand retailers to clear up the stock of goods.

Simeon Siegel, an analyst at Instinet, said that today's consumers are keen to pay attention to holiday brands' discount activities.

At the end of the season, nearly 2500 handbags were discounted at Macy 's.

The high-end department stores Neiman Marcus and Barney cleaned up at least 900 items of inventory.

Market research firm Euromonitor predicts that by 2020, handbag sales will grow to 3.1% from 16% in 2012.

Because of the current economic slowdown policy to promote the diversification of enterprises, Michael Kors is expanding the men's wear series, Kate Spade has launched household products, and Coach is attracting the "millennial generation" by expanding the handmade customization service experience of the store (letting customers design their own handbags in the store).

In the face of the depressed industry background, all luxury enterprises are exploring new ways of "survival and reorganization".

More interesting reports, please pay attention to the world clothing shoes and hats net.