Global Luxury Market Is Recovering

According to the world clothing shoe and hat net, if you look at the recent analysis of the advisory body for

The judgement of market prospect is not difficult to understand luxury.

Advertisers spent a lot of time in advertising, whether they were Bain, a consultancy, or Moodie, a bond rating agency.

The growth rate will increase significantly over the previous two years.

In other words, in the eyes of these authorities, the global luxury market is indeed recovering.

Specifically, the data given by Bain consulting is relatively conservative.

In its joint report with the Italy luxury industry association, the global luxury market's total revenue in 2017 is expected to increase from 249 billion euros in 2016 to 259 billion euros, with an increase of 2% to 4%.

This figure is higher than its 1%-2% growth forecast in October 2016.

The figures given by Moodie are even more inspiring.

In its global luxury company research report, its median global product performance rose by 7% in 2017.

This figure was only 4% in 2016.

In fact, in the first quarter of 2017, the overall performance of the global luxury market has restored confidence to many people.

According to the data from Bain consulting, the global luxury industry achieved 4% growth in the first quarter under fixed exchange rates.

In view of specific companies, LVMH and Kai Yun group also achieved strong growth in the quarter, achieving 15% and 31.2% year-on-year revenue growth respectively.

But it has to be said that such a performance is not a universal phenomenon.

In Moodie's report, SMCP groups such as Ralph Lauren, Tiffany & Co., Sandro and Maje bought by Ruyi group of Shandong have also been named.

Although these groups are also expected to achieve revenue growth in 2017, the growth rate is not expected to be too large, at least not two digits.

"The whole luxury industry wants to return to double-digit growth in the past few years until at least 2020, because the growth of the Chinese market is slowing down, customers are pursuing price performance with high price sensitivity, and experience consumption such as tourism is also rising."

Moodie analyst Vincent Gusdorf said in an interview with the fashion news media "women's Wear Daily".

This aspect is related to the regional market environment.

Compared with the Chinese and European markets, which are gradually recovering from the joint effect of anti-corruption and terrorist attacks, the US market has greatly delayed the global luxury industry.

We have reported many times that the department stores in the United States declined significantly in the last one or two years, and that large department stores were constantly closed.

Many companies' Prudence in business strategy also reflects to some extent the fact that the environment of luxury goods market is still grim.

For example, Ralph Lauren has been shutting down shops in the past few months, many of which are flagship stores with core geographic location.

And LVMH CEO Bernard Arnault released the "bigger storm on the way" after the group's first quarter results were released.

At present, luxury companies hope to invest more money in mergers and acquisitions to better cope with the market environment which is not yet ideal.

In addition to the already settled Coach's acquisition of Kate Spade and LVMH's full share purchase of Christian Dior, Jimmy Choo and Bally have been placed on the list for sale by their parent company JAB, while Michael and Fosun Group are all buyers of high voice.

In addition, according to HSBC's prediction, Kai Yun group is likely to sell the sports brand Puma that has become a Rednet in the past two years to cash in and prepare funds for the subsequent acquisition. In addition, LVMH group and the Lifeng group seem to have a theoretical merger possibility.

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