Will Future Brunello Cucinelli Be As Strong As It Is Now?

The rejoice of the song of joy has not yet dissipated. The summer has come to a climax. It is sure that many young girls who have been immersed in the warmth of their bags will become more "warm". It is recalled that Andy, a well trained five Chinese American, is rather refreshing in the hot summer months.

Andy's popularity in "Ode to joy" is well received, with the largest number of costumes.

Top luxury items from Italy

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Brunello Cucinelli is the top luxury brand in Italy and even the whole world. It is known as the "king of cashmere" with low-key luxury. It is well known in the Chinese market because of the play of Andy.

The world famous cashmere dyeing technology, invented by Brunello Cucinelli, the founder of the group, has changed radically.

The main color of beige and gray is the situation.

Brunello Cucinelli has been showing rapid growth since its listing.

However, the development of the luxury industry has always been a combination of opportunities and challenges. Will the future Brunello Cucinelli be as strong as it is now?

Performance gains, mainly rely on "Andy" help?

Recently, Brunello Cucinelli released its earnings Bulletin: in the first half of the last day of June, its revenue grew 10.7% to 243 million euros, 9.7% at a constant exchange rate, and an increase in shopping malls in its locations.

Among them, Italy's domestic market revenue increased by 5.9% to 41 million 800 thousand euros per year, while the rest of Europe rose 9.9% to 75 million 200 thousand euros, and the North American region grew 9.4% to 83 million 600 thousand euros.

The largest increase was in the Greater China region, an increase of 34.6% over the previous year, reaching 18 million 400 thousand euros.

The growth in other regions is between 11.4% and 24 million 300 thousand euros.

In addition to the overall growth in the international market, Brunello Cucinelli also has gratifying results in retail business.

According to statistics, the same year sales of its retail business increased by 4%, and net income rose to 21.7% to 121 million 100 thousand euros, up from 45.3% in the same period last year to 49.8%.

Wholesale single brand channel revenues dropped by 20.8% to 17 million 600 thousand euros, reflecting the end of e-commerce and Yoox Net-a-porter Group Spa (YNAP.MI) cooperation, which was merged into four retail outlets in Moscow.

Wholesale single brand channels grew 6.7% to 104 million 600 thousand euros, accounting for 43% of group revenues, down 1.6 percentage points from the same period last year.

According to the world clothing and shoe net, Brunello Cucinelli has 91 direct retail outlets, while wholesale brand stores only have 32 outlets.

According to the analysis of this situation, Brunello Cucinelli seems to be intending to shrink the wholesale single brand channel and develop towards the retail business.

From the perspective of Brunello Cucinelli's whole international market, both domestic and overseas markets have achieved varying degrees of growth. Taking China as an example, the growth of its performance has made an indelible contribution to the spokesperson "Andy (Liu Tao)".

Whether it's "Ode to joy 1" or "Ode to joy 2", Andy is the most styling character in the play, while Andy's professional suits are almost all Italy's top cashmere luxury brand Brunello Cucinelli.

From the high ratings of "Ode to joy" and the search of Andy modeling, Brunello Cucinelli has become a popular luxury brand in China.

Although the growth of Brunello Cucinelli in China is the largest and its popularity has risen much more than before, the business of its group in China is only a small part.

Therefore, the main reason for the growth of Brunello Cucinelli is not Andy's help.

"No excessive distribution" strategy to curb the growth of China's market

Brunello Cucinelli has developed from a small Italy luxury product to the world's top luxury group without good sales performance.

However, if Brunello Cucinelli develops according to the original plan, no innovation will be faced with great challenges in the future development.

First of all, the Chinese market is almost recognized as the main luxury market, but the share of Brunello Cucinelli in the Chinese market is very small.

All luxuries will take the Chinese market as a potential stock, while Brunello Cucinelli accounts for only 7.5% of the group's business in China.

In contrast, the Italy market, despite its modest growth, still accounts for 20% of its total sales because of its larger market share.

Brunello Cucinelli believes that "no excessive distribution" is the key to the success of its brand, but a reasonable allocation of market share is also a wise choice.

Secondly, the audience of Brunello Cucinelli is not young enough.

What is interesting about consumers of Brunello Cucinelli is that Brunello Cucinelli attracts more successful people over 30 years old in the Chinese market, and attracts more young consumers in Italy.

In China, the main force of consumers is slowly becoming younger. In the era of young consumers pursuing individuality, Brunello Cucinelli seems to be very difficult to attract millennial consumers with its comfortable and concise design style.

The characteristics of Brunello Cucinelli consumer groups are not only in the Chinese market. For example, Zuckerberg, founder of Facebook, will wear a gray T-shirt no matter what occasion he attends. The "universal" grey T-shirt is the brand of Brunello Cucinelli. However, he once said he had more than 20 such gray T-shirts, so long as they were comfortable and comfortable, they did not need to spend their time in modeling.

It can be seen that although the growth of Brunello Cucinelli in China's market is killing other countries' markets, the market share is not enough, so it is difficult to become the main force for its future development.

In terms of consumer age, Brunello Cucinelli can be more conducive to future development if it is clearer.

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After three years of pain, can you escape the seven year itch?

People seem to prefer to use "7" as a cycle, a week is 7 days, the cell completes a whole metabolism is seven years, and even people's feelings are seven years to do a test, that is, we often mentioned the "seven year itch".

2017 is the fifth year of Brunello Cucinelli's listing in Milan. In another two years, Brunello Cucinelli will also be listed on a cycle.

Will Brunello Cucinelli stand the test of time and avoid the "seven year itch"?

In recent years, the development of luxury goods has been in the doldrums under the influence of the big environment, while Brunello Cucinelli is not affected by luxury winter.

However, since the beginning of the year, the luxury goods industry has been getting warmer and warmer.

The two growth of luxury goods also means that Brunello Cucinelli will face more intense competition.

LVMH, Hermes and other luxury goods industry, on the one hand, has made the Chinese market as the main selling market, and on the other hand, it has made efforts from the channel of e-commerce.

Brunello Cucinelli is still immersed in the joy of two digit growth every year, and firmly believes that the idea of "no excessive distribution" will make the group even more successful.

Perhaps the reason why China's luxury market has been sluggish in the past few years, Brunello Cucinelli has not invested too much in the Chinese market.

Nowadays, in the era of new retail development, more and more consumers have changed their traditional consumption habits. The luxury goods group has begun to adjust its structure and business mode in order to adapt to the new market environment.

If Brunello Cucinelli still develops according to the previous enterprise development plan and does not innovate, it will be difficult to avoid the "seven year itch" of group development.

To sum up, Brunello Cucinelli, as the world's top luxury group, needs not only to grasp market positioning but also to allocate market share rationally.

However, the price of a five digit number of clothes for Brunello Cucinelli is probably only "Andy".

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