Xia Fei Nuo Performance Decline, Glasses Proxy Is Recovered

Italy glasses enterprises Xia Fei Nuo Safilo Group SpA recently announced its 2016 earnings report. The company's annual net sales reached 1 billion 252 million 800 thousand euros, representing a slight decline of 2% in 2015 compared with 1 billion 279 million euros in 2015.

As a long-term international Luxury goods The brand is the foundry sales company, and the brand of the company is nearly 80% of the total business. The company explained that the decline could be attributed to the group's suspension of service. brand And the negative effects.

According to the world clothing shoes and hat net, for a long time, the international luxury Brand Company hardly ever does the eyeglasses business in person. In all the business sectors of luxury goods, the glasses business is very small. These big Brand Company do not specializes in glasses business. Their design, production and distribution are agents of professional glasses companies.

But the above situation is being gradually broken.

At the beginning of this year, China's female actress Ni Ni endorsed the spectacles of luxury brand Gucci (Gucci), and the advertisements spread all over the world. Before that, the marketing of the company was not so high.

The reason for this is that in January 1st of this year, Gucci terminated its dealership with its glasses dealers and reclaimed the right of agency.

According to the world clothing shoes and hats net, the date of dissolution of the cooperation is two years ahead of the original contract. To this end, Gucci's parent company, the world's second generation luxury group, has paid a 90 million euro penalty to Xia Fei Nuo. This price is not too small, at that time, Gucci's performance is still in a doldrums.

"Premeditation" has a long history. In 2014, Kai Yun group set up the glasses Department inside, and excavated the former CEO of Xia Fei Nuo group. According to the plan of Kai Yun group, its brand new business model of glasses has changed from the traditional way of agency to the new business mode of glasses production and sales. The group will control the whole industry chain from design, production, brand building, marketing and sales.

Such practices are rare among many luxury goods companies. For example, LVMH group (including the former Kai Yun group) has been "used" to hand over the glasses business to professional companies such as Lu Xunti GroupSpA and Luxottica. For luxury goods companies, a pair of glasses of 1000 or 2000 yuan and those expensive bags and ready-made clothes are simply small, so outsourcing is a great help.

In an industry report recently released by Mediobanca, the investment bank of Italy estimated the annual sales of several big brands of spectacle products: Gucci exceeded 100 million dollars, Dior 200 million euros, Armani also exceeded 100 million dollars.

Generally speaking, brand and spectacle manufacturer have 7.5% "profit agreement". Of course, this agreement is not applicable to all brands. If the company's brand is strong, then it may get more profits.

As a group, there are many luxury brands under Kai Yun banner. If the glasses business is resumed by itself, there is no doubt that the "money" will be considerable. As RobertoVedovotto, head of glasses business of Kai Yun group, said, "glasses are a strategic category. We hope to bring the glasses business into our own business, fully control the third party manufacturing, and strengthen the sales of self owned shops, so as to help the 11 brands in the field of glasses business to achieve constant growth."

According to the world clothing and shoe net, the contract between the company and LVMH C line will expire in December 31, 2017, and will terminate the design, production and sale of the latter sunglasses and optical frames.

In the industry, it is estimated that the case of brand operators' recovery of spectacle business will increase in the future. Of course, this is based on the success of Gucci. According to Mediobanca statistics, the five major brands of LVMH group, which are most closely related to the company, contribute about 350 million euros a year to the group. And if we really calculate according to the 7.5% agreement, LVMH can only get 26 million euros.

Under the turbulence and changes of the industry, Xia Fei Nuo also realized the "crisis". In an interview with reporters, Thomas Moericke, senior business director of Asia Pacific and greater China, said that enterprises have made adjustments to the entire group brand portfolio in the past two years. The future plan is to reduce the proportion of agent brands in the group business and enhance the sales of self owned brands. "We hope that the future private brand will account for about 40%."

China's market now accounts for less than 10% of its global business. Thomas Moericke told reporters that compared with Europe and America, Asian markets sell more optical glasses. Reports show that the number of myopia in China will reach 700 million in 2020, which is almost two times the total population of the United States.

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