The Group Has Increased Its Investment In Chlo'S Because Of Poor Watch Sales.

Switzerland

group

The sale of watches selling tens of thousands of dollars has been sluggish, but its French

The brand Chlo ye (COE Yi) sells thousands of dollars of Marcie bags and folding shirts to attract consumers to rush to buy.

According to the world clothing and shoe net, because of the long sales slump of the Swiss watch industry, Chlo's sales performance has become a rare highlight of the group.

The group is increasing its investment in Chlo, and the brand will add 8 stores this year.

Chlo CEO Geoffroy de la Bourdonnaye said in an interview: "in the past two years that other luxury brands are not growing, we have grown strongly and really won market share."

Although the sales of leather products such as Cartier (Cartire), Van Cleef & Arpels (Van Cleef & Arpels) and so on, accounted for only 1/10 of the group's sales, but Johann Rupert, the chairman of the board of directors of the group, spent many years building a portfolio of fashion and leather products, including the French designer Azzedine Alaia, the British luxury men's wear Dunhill and so on.

This month, the group sold Shanghai Tang, a Chinese luxury brand, to Italy entrepreneur Alessandro Bastagli at an unknown amount. This is the first time the group has stripped its luxury brand from Shanghai.

(see the previous report: Swiss peak group sells its Chinese style luxury brand Shanghai Tang Shanghai).

The rise of fashion leather goods sector

Chlo e found that compared to the price of more than $10000 Hermes Birkin package, or Chanel, Louis Vuitton, and other brand accessories, young women fans are looking for more economic, more low-key brand choice.

As of the 2016/2017 fiscal year ended March 31st, the sales volume of the fashion and leather goods department of the group reached an increase of 11% over the same period last year.

Johann Rupert stressed the performance of Chlo e at the conference call in May, indicating that the group's fashion leather Department started to work.

In the fiscal year 2016/2017, the sales of the group reached 4% year-on-year.

Since March, the watch industry has shown signs of recovery. In June, the Swiss watch industry's exports increased by 5.3% to 17.3 billion Swiss francs year-on-year for four consecutive months.

(see the previous report: growth has been achieved for four consecutive months, Swiss watches exports increased by 5.3% in June, and growth in mainland China and Hongkong has slowed down).

Luca Solca, director of luxury research at Exane BNP Paribas, Paris, France, predicts that sales in Chlo over the past three years have increased by two digits.

Although the peak group did not announce the sales of fashion leather goods department, Luca Solca predicted that the annual sales of the brand would be about 450 million euros, which is similar to the sales of Italy luxury brand Brunello Cucinelli SpA, which is half of Tod s SpA or Moncler SpA.

Chlo e was founded in 1952 by Gaby Aghion, born in Egypt.

(see details: Chlo E. co founder Gaby Aghion died at the age of 93).

Since the accession of De La Bourdonnaye to CEO, the brand has achieved sales growth for seven consecutive years.

Prior to that, the former creative director Phoebe Philo (now C e line creative director) left the brand in turmoil because of family reasons.

In 2011, Clare Waight Keller joined in to re infuse the brand with the spirit of freedom.

At the end of 1 this year, Chlo e confirmed the resignation of Clare Waight Keller and announced that the successor was Natacha Vuitton, the second in charge of design for Louis Vuitton. She will be the first show in the brand fashion week in Paris this September.

About Natacha Ramsay-Levi, CEO said: "she respects the brand, and has her own perspective, and she will try to achieve something."

The challenge for Natacha Ramsay-Levi is to expand the brand on the basis of not affecting the image of Chlo e "leisurely".

Olivier Abtan, director of global luxury market at Boston Consulting Group, said that even in the world's third largest luxury market, China, consumer preferences have shifted from the obvious big logo to the more sophisticated niche brand. "Olivier"

"The United States took 30 years to complete this pformation, while China took only 3 years.

This opens up a new avenue for fashion brands, including Chlo, "

Retail store

To maintain logo's low profile and enhance its popularity, Chlo e chose to strengthen investment in retail channels.

This year's new stores will be located in London, Tokyo and Singapore.

Compared to department stores or e-commerce channels, independent boutiques are more expensive, but can lead to higher value pactions.

In 2016, brand 167 retail stores contributed less than half of the total sales.

De La Bourdonnaye said: "we have fewer stores than other luxury brands, and we want to catch up."

As the fastest growing category of luxury brands, Lifeng group is repurchasing the license for production of Chlo shoes.

In addition, the brand is refurbishing a high-rise five story building in downtown Paris, which is converted into a brand showroom and can also hold art exhibitions and other activities.

Patrik Schwendimann, an analyst at Zuercher Kantonalbank, said that she hoped that Johann Rupert Kantonalbank could thoroughly organize the bags and clothing brands of the group in the next 2~5 years, and sell more successful brands such as Chlo.

"Overall, Johann Rupert is cautious about having a more solid foothold and expertise in leather and fashion sectors."

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