How To Pform Gucci?

As the saying goes, do not try to retain a person who has no love for himself. Besides, he prefers to walk out of the house.

Right now, the world's second largest optical traders.

(Safilo) just 20 years after a similar story, Gucci officially terminated its cooperation with Xia Fei in January this year, because it was 2 years ahead of the contract.

If you lose 90 million euros, you must take away the power of sunglasses.

According to the world clothing shoes and hats net, this "break up" also took up two years.

In September 2014, Gucci's parent company, Kai Yun group, founded the independent eyeglasses Department of the company, and announced that it would tighten its flag.

Control of sports and lifestyle brands.

This locking strategy begins with the recovery of the authority of the agent, and many years' partners have become the target.

Previously, the Italy Sunglasses agent is responsible for the one-stop service of Gucci Sunglasses business from design, production to sales.

Xia Fei Nuo is the second largest eyeglass in the world. As early as 2004, it occupied 40% of the market of high-end eyeglasses. Only Luxottica SpA, the largest eyeglass company in the world, was able to compete with it.

Their business models are more similar, and a large part of their income comes from Sunglasses agency business of major luxury groups. Names of Alexander McQueen, Dior, Giorgio Armani, Gucci and so on have been on the list of Xia Fei Nuo.

Because of the opening of the cloud, Xia Fei Nuo has suffered heavy losses.

In 2016, its annual net sales fell by 2% over the same period last year.

Affected by the decline in performance, the group's stock price decreased by 7.5% on that day and its market value narrowed to 400 million euros.

Meanwhile, LVMH has just announced that it has acquired a 10% stake in Marcolin group, a Italy eyewear manufacturer, which has made it worse.

The news of being discarded by luxury goods has led to the embarrassment of Xia Fei Nuo. The accessories market in recent years has great potential, and Xia Fei Nuo has lost an excellent opportunity to make money.

According to the data provided by Business of Fashion, the global market for spectacles reached US $90 billion 300 million in 2013, and this figure will increase to US $140 billion in 2020.

The main driving force for growth is the growth of the middle class. They are willing to pay more for luxury products at the entry level.

This is also the main reason for the luxury group to decide whether to invest or operate Sunglasses business. It is obvious that the situation is not clear.

Besides, luxury goods are not sold as good as they used to be. Of course, we need to save some other methods.

For example, last year, Burberry also withdrew the agency of perfume and cosmetics business.

The right to recover outsourcing is also gradual.

It is worth noting that Kai Yun did not take any time to cooperate with sheyenno, and the senior executives of sheyennuo will also participate in the joint venture of the open cloud glasses Department.

When they announced the termination of the contract, they actually signed a new contract between 2014 and 2018.

In the past 4 years, the company will continue to be responsible for the production, manufacture and supply of some Gucci eyes.

Literally, the short-term cooperation of Xia Fei Nuo seems to provide technical support for the opening of the cloud. As for the design links, as well as later sales and marketing, Xia Fei Nuo can not get to the edge.

In recent years, Gucci, a highly successful pformation, has returned to the top of luxury brands. Because of its consistency in brand image promotion, it is more uniform and comprehensive for all kinds of products, especially sunglasses, which can easily enhance the overall styling of fashion accessories.

Gucci obviously wants to strike while the iron is hot, but unfortunately, agents are not always able to keep pace with them.

We can interpret one or two from the numbers.

According to the figures disclosed by US financial analyst Holmes Osborne on the website, the contribution of Europe to sales is 42.5%, 41.1% in North America, 9.1% in Asia and 6.8% in other markets.

Obviously, the Asian market has become the short board of Xia Fei Nuo and has a huge gap with Europe and the United States.

In the 11 quarter of 2016, the third quarter earnings report released by Xia Fei Nuo showed that its total net sales in the Asia Pacific region dropped by 20.2%.

Even so, Xia Fei Nuo still has no plans to fully enter the Asian market, and the movements are very slow.

Livemint website said that it was not until May 2016 that it brought the Dior sunglasses into India for the first time.

Before that, 17 brands entered the India market, but the total revenue was only about $1 billion 200 million.

What is even more subtle is that in March last year, the company removed India from the Asia Pacific region and merged into the Middle East and Africa blocks. Its CEO Luisa Delgado said: "this initiative will help us to provide better help and more investment for the India region."

This means that the Asian market has never been valued in the development of Xia Fei Nuo, or that Xia Fei Nuo lacks the resources and connections to expand Asia.

This is contrary to the strategy of the luxury group in recent years. As early as 2010, Gucci announced that it would invest the largest investment in Asia, accounting for 60% of the total investment of the group.

But in 2014, Asia's business declined sharply. Apart from Japan's contribution to 14% of its sales, China was experiencing a downturn in the performance of luxury goods, which was experiencing economic slowdown and anti-corruption.

The third quarter of 2013 was the worst performance of Gucci since 2009. In those days, Gucci even increased its discount in China, and there was also a marked slowdown in advertising.

Under such circumstances, Gucci intensified its reform efforts in 2014 to reduce the low-end products, and invited the new design director to try to save the decline of Gucci in the past 10 years.

The reform plan coincides with the Gucci's time to recover the agency, and it is impossible to reach a consensus with the old people.

{page_break}

On the contrary, the old rival of the company has gone the opposite way.

If we look at Lu Xun's recent performance, we will find that the biggest sunglasses in the world are actively developing the Asian market.

In 2009, it first developed optical glasses for Asian consumers. In 2015, Lu Xun Ti card introduced its own 3 brands, Ray-Ban (Ray-Ban), VOGUE and OAKLEY, into Jingdong by self mode. In 2016, it also invested $1 billion 600 million to accelerate expansion, and Xin Xing market became the main destination of expansion.

According to the Paris banking and securities department, there is a growing demand for glasses in Asia, Africa and Latin America. Apart from the agency, Lu Xun Ti card also believes that it is time to launch its own brand, according to 2 billion 300 million people in Latin America.

In January 2017, Lu Xun and Essilor International, the French lens manufacturer, completed the largest cross-border M & A in Europe, trying to "monopolize" the eyeglasses industry.

The rising period of Lu Xun ladder also attracted the partners of the company.

Last year, Giorgio Armani changed its Sunglasses agent to Lu Xun ladder group.

We can not be sure for what reason, but at least, the glasses industry is in the process of shuffling, and Xia Fei Nuo is obviously at a disadvantage.

This also forces the company to pform rapidly, and expand Asia and develop new high-end products.

In January 24th, the company announced that it had reached an exclusive distribution agreement with SEENONE for the optical glasses market in South Korea, which is regarded as an important step in the Asian market.

The company also said: "Korea is an important market for the group. The pformation is aimed at further exploring the market potential of many high-end brands in Korea."

In February 6th, it announced the establishment of a high fixed eyeglass studio with the advanced custom brand Elie Saab and eyewear brand OXYDO to fill the loss of luxury customers.

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