Kai Yun Group Embracing Electricity Providers In Front Of Consumers

According to the world clothing shoes and hats net, August 3rd, France

Group Open Cloud (Kering) and China's e-commerce giant

The confrontation ended.

The two sides have reached an agreement on joint efforts to protect intellectual property rights, claiming that they will join hands online and offline to crack down on intellectual property infringement.

At the same time, Kai Yun agreed to withdraw the lawsuit initiated by the New York district court to Alibaba group and Alipay.

This breakthrough agreement shows that

The group is changing its attitude in embracing the electricity supplier.

According to McKinsey's July 2015 report, by 2025, the proportion of revenue generated by e-commerce channels will account for 18% of the total income of luxury goods.

The performance of Kai Yun in the first half of 2017 continued the strong trend of last year. Its revenue grew 26.5% to 72.962 euros, and net profit increased by 77.6% to 825 million 800 thousand euros, which exceeded analysts' expectations.

Among them, luxury business revenue rose 28.3%, sports and lifestyle plates also increased by 14.3%.

Among them, Gucci is the most well-known brand and the best performing brand recently.

In the first half of 2017, Gucci revenue grew by 45.4%, accounting for more than half of the open luxury sector.

Since 2017, the share price of Kai Yun has increased by more than 40%.

The French MOET & CHANDON Hennessy LV group (LVMH) performed similarly well in the first half of the year. Revenue grew 15% to 19 billion 700 million euros, and net profit increased 24% to 212 million euros, the highest growth rate in 2011.

Geographically, the results of Open Cloud and LVMH are all over the world, and mature markets and emerging markets are very strong.

In recent years, LVMH, once very opposed to electricity providers and refused to cooperate with Amazon, has actively changed its attitude in recent years, complying with the development of the new era and trend.

In China, they have carried out deep cooperation with Tmall. So far, many brands of LVMH's five major business divisions have been logged onto Tmall.

Under the new consumption trend, Kai Yun group is also working hard to adapt to the change.

In fact, its recent strong performance can be attributed to the following three aspects, including digital marketing and embracing the electricity supplier.

First, the new designer rebuilds the brand image.

Gucci current president and chief executive officer Marco Bizzarri

Kai Yun interior attributed the first half of its performance to "regular innovation". Brand leaders have greater decision-making power to schedule and configure brand resources. Gucci's personnel changes two years ago are the best examples.

In 2015, Marco Bizzarri, chief executive of Kai Yun group's senior fashion and leather goods department, took over Gucci, and appointed Alessandro Michele as director of design for 11 years in the Gucci leather design department. After two people took office, she reversed Gucci's five quarter downtrend.

Generally speaking, the flagship luxury brand will appoint multiple creative directors to take charge of different lines of business, while Gucci will empower Alessandro Michele to give him the right to control the aesthetic language, visual presentation and even store display of various brands.

Alessandro Michele has overturned the mature and sexy image of Gucci in one fell swoop.

He used a lot of remote retro elements and complex animals and plants. He also mixed two lines of men and women in fashion week.

The brand new image makes Gucci famous.

French research firm Exane BNP Paribas used brand to magazine advertising input and exposure ratio to count a brand fever list. Data show that in the year after the new design took office, Gucci's heat increased by 15%, becoming the hottest high-end and luxury brand.

This design change also implies mystery at the commercial level.

Pink and tender colors, bees and lions are very appetites to young people. President Marco Bizzarri said in an interview with reporters that the principle is "to listen to the voice of consumers, but not to listen to everything". Alessandro Michele understands this yardstick.

More importantly, complex design elements are more unique and striking than brand LOGO, and the process is difficult to duplicate, which makes fortress and counterfeiting difficult.

Not only that, the launch of new products has enabled Gucci to push up the average price of products, supplemented by the reduction of discount activities and margins, and the retail price of Gucci products has improved compared with the previous ones.

Two, make good use of social networking for interactive marketing.

Kai Yun Group Chairman Francois - Henry Pino

Francois Henry, Pino, head of Kai Yun group, once told an exclusive interview with NBC financial channel that young people under 35 contributed more than 50% to Gucci.

In order to attract consumers who love the Internet more than their fathers, Gucci has increased the proportion of digital marketing budgets, reaching 35% in 2017.

The whole Kai Yun group's earnings report also announced that the digital marketing budget will be raised to 40%.

This is backed by solid research findings. A joint survey conducted by Thorpe and Google Corporation in 2016 showed that 76% of consumers used to do homework online before buying luxury goods.

In social applications Instagram and Snapchat, Gucci frequently introduces interactive content.

For example, in July 2016, Gucci launched an interactive marketing campaign for its sneakers Ace on Snapchat. 24HourAce, a leader from more than a dozen countries, took turns to operate the official account of the brand in a day in a relay way, releasing its own video content created according to the Ace shoes, and interacting with fans.

Among the opinion leaders are graffiti artists, skateboarding artists and animation designers. This kind of choice close to youth culture is no doubt trying to please young people.

Young artists are free to promote the promotion of ACE sneakers on Snapchat.

For example, in March, in order to publicize the LeMarch des Merveilles series watch, Gucci even dropped her figure, put a batch of pictures taken from the watch on Instagram for the famous facial expression bag, creating free play and even spoof, making the virus spread.

Invite artists to "KUSO" Gucci new products on Instagram

Meanwhile, Gucci has set up a blog website TheAgenda at Gucci in North America, which is dedicated to updating the graphic content related to the design concept of Alessandro Michele.

{page_break}

Three, embrace the electricity supplier, run in front of consumers.

"Because of the development of the electricity supplier channel, some brands that you don't see in the eyes have become your competitors."

Marco Bizzarri told reporters.

NathalieRemy, McKinsey partner, said that the smaller brands tended to rely on e-commerce providers because of the higher taxes on offline outlets.

This is also the reason why Marco Bizzarri regarded the players who had once been a blind eye as a threat.

Bizzarri said Gucci "has always attached great importance to the electricity supplier, the goal is to walk in front of consumers".

Gucci's earliest official mall began operating in Europe in 2002.

However, in Pino's view, for the open cloud, the first priority of the Internet is to become a new communication tool, followed by sales and services.

In 2016, the electricity supplier contributed 22% of the sales of its brand products, of which Gucci's business revenue increased by 20% and Yves Saint Laurent up to 75%.

The important reason behind this is that the young people who support the brand are born in the Internet age, and the way of brand sales must expand or pfer rapidly along with their habits.

The attitude of opening up to the electricity supplier has changed rapidly.

Marco Bizzarri said it hoped the electricity business could increase to three times in the future.

China and the United States are the two most important markets for Gucci in terms of e-commerce. In 2015, Gucci launched its own business in the US. In July 2017, the self catering business for Chinese consumers was officially opened, and supported Alipay, WeChat payment and cash on delivery services.

In order to create a unified online and offline consumption experience, Gucci redesigned the website's vision and content under the renovation and upgrading line, so that the new products of the season will be presented according to the effect of T show.

Not only is Gucci, but the luxury industry's exploration of e-commerce is deepening.

In May of this year, Cartire completed the first episode of Panth re re on the Net-a-porter of Yoox Net-a-porter, a luxury electric provider.

This is undoubtedly very inspiring for Yoox Net-a-porter, the CEO of Federico Marchetti, calling it "a milestone in long-term strategy".

Expensive watches and jewellery are the jewels of luxury crowns, and a Panth re sells for about 1 million 700 thousand yuan.

Although Cartire set up its own official mall in 2015, high jewellery and jewellery watches were not sold.

Therefore, the new watch first started online and then entered the next store, which is Cartire's boldest move so far.

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