The Uncertain American Market Is The Pain Of American Brand.

In the American fashion retail market, luxury luxury brands, which are between high-end luxury brands and popular brands, are known as the Savior of the weak market, such as Michael Kors, Tory Burch and Furla. Luca Solca, an authoritative luxury industry analyst, pointed out that the retail market environment is more suitable for the development of light luxury brands with moderate price and high cost performance. However, LVMH group's transformation of DKNY into light luxury brand is not successful.

In the first half of last year, LV's US market remained strong, rising 7% in the first half year, offset the weakness of its most important luxury brand LV in some other parts of the world, which proves that LVMH group has been successful. U.S.A Consumers are selling French style but they are helpless to the American fashion brand.

LVMH group's high growth in the United States has offset the weakness of its two fashion brands. Now the group's only fashion brand Marc Jacobs is worrying. Reporter Marc Bain revealed in social media Twitter, Bernard Arnault even directly expressed in the 2016 annual investor call conference, "compared to Trump, I am more worried about Marc Jacobs." Bernard Arnault increased the shareholding of Marc Jacobs International LLC to 80% in 2013.

Bernard Arnualt stressed that although LVMH group performed well in fiscal year 2016, it does not mean that it will continue this favorable trend in 2017. The profitability of its brands will be the focus of the group's future attention, which means that every brand must bear responsibility for the quality and image of its products, so as to ensure long-term and stable growth of its performance, which in fact implies. Marc Jacobs The current dilemma.

According to public information, LVMH group's investment in the acquisition of the American fashion brand Marc Jacobs and DKNY performance continued to shrink, as of the first half of last year is still a loss. LVMH group finally admitted its failure. Last July, it agreed to sell DKNY parent company DKI to G-III group at a price of 650 million US dollars.

Luxury market analysts predict that the annual sales of DKNY will be about $450 million, and that of G-III group is about 1.4 times that of brand annual sales, while that of LVMH group in 2001 is 1.9 times that of brand annual sales. Obviously, this is a failure case of LVMH group.

LVMH group does not sell its brand frequently, the group sold its flag last time. Fashion brand Christian Lacroix is 2005, and the group's sale of DKNY also reflects the current downturn in the luxury retail market. The market environment is difficult, and giving up the loss business is second only to the best choice to reverse the business.

The US media pointed out that the LVMH group failed to fully understand the operation of the American fashion brand, and Jean-Jacques Guiony, chief financial officer of LVMH group, acknowledged that Marc Jacobs was operating very hard in response to the news of the deadlock of Marc Jacobs in July last year.

In 2013, designer Marc Jacobs left Louis Weedon to devote herself to her brand. At that time, she had heard of the brand plan for IPO, but now there is little chance. According to earlier WWD related news, Marc Jacobs business development has been in a low ebb. Earlier, the company decided to close the modern style Marc by Marc Jacobs to the main brand Marc Jacobs, but its performance has not been improved since then.

According to earlier reports, Marc Jacobs is facing more complicated problems than DKNY. Up till now, the legendary luxury goods group of LVMH has not helped Marc Jacobs find a way out, and whether it should abandon the American fashion brand. This is also the most heady choice for Bernard Arnualt this year.

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