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    How Did These International Luxury Brands Suddenly Get Better?

    2017/8/9 12:36:00 68

    GucciLuxuryBrand

    Pan Jie, 28 years old, finally bought the long ribbon Gucci satin bag when he took a trip to Japan on May day's long vacation.

    3 years ago, she still thought this brand was a bag that mothers would use.

    She also remembered that her mother had bought a cheap Gucci package at a Ott Leslie during a trip abroad.

    In the eyes of a girl who was just twenty in the past, the bag challenged her aesthetics. "It's a canvas shopping bag full of logo," Pan Jie said heartily.

    But now,

    Gucci

    The battle to win the battle turned out to be one of the hottest brands.

    The latest figures show that in the first half of this year, the brand's revenue increased from 1 billion 947 million 500 thousand euros in the same period last year to 2 billion 832 million 500 thousand euros (22 billion 400 million yuan), an increase of more than 40%.

    According to the world clothing shoes and hats net, in the first half of this year's earnings report, several big

    Luxury goods

    The group mentioned the promotion of Chinese consumers' sales performance.

    As for China's local consumption, Zhou Ting, President of the Institute of wealth quality, believes that in addition to the strong purchasing power of the new generation of consumers, it is also related to the steady decline in real estate pactions and the downturn in the stock market.

    "(money) has no better investment destination, to a certain extent, promoted high-end consumption."

    Luxury group performance rises all the way

    Thanks to Gucci's impressive growth, its parent company Kering, a French luxury giant, has also made impressive achievements in the first half of fiscal year 2017: the company's revenue reached 7 billion 300 million euros (57 billion 700 million yuan), an increase of 28.2% over the same period last year, a 330 basis point increase in operating profit margin (1 base point =0.01%) to 17.5%, and net income growth of nearly 78%.

    Of course, it's not just Gucci.

    Such as Yves Saint Laurent, Bottega Veneta, and so on, are all under the banner of open cloud.

    brand

    The performance of the former is quite good, and the revenue in the first half of this year has increased by 28.5%.

    Reporters found that in addition to Kai Yun group, another giant LVMH group also announced its performance in the first half of this year on Thursday.

    Although not so bright, sales increased by 15% over the same period last year.

    The group owns many famous brands such as Louis Weedon (Louis Vuitton), Dior (Dior), Bvlgari (Bvlgari) and so on.

     After the closing of stores and sales, the performance of international luxury brands suddenly recovered?

    The Hermes, the top known brand, has not been released until September, although the specific financial data in the first half of the year are not bad, but it is also good in the early two quarter, with sales reaching 1 billion 360 million euros, up 8.9% over the same period last year.

    "Indeed, at present, the whole luxury industry is in a rising trend."

    As a senior luxury observer, Zhou Ting told reporters that the desire to buy high-end consumers has come back.

    The recovery is likely to continue for some time.

    Bain consulting and Italy luxury industry association jointly released a report that luxury goods including watches, jewelry, clothing, shoes and leather products will increase to 254 billion ~2590 billion in 2017.

    Zhou Ting said that the growth of the luxury goods industry began to emerge from the second half of last year.

    This allows the cloud's performance in 2016 to be the best in 5 years.

    In China, the growth rate of luxury consumption in China in 2016 was 4%, the first time that China's luxury consumption has picked up in the past 3 years.

    "In the first quarter of 2017, the plight of the luxury sector eased.

    The continued return of consumption in China, as well as the consumption prospects of locals and tourists in Europe, will help to drive the growth of the market in the rest of the year.

    Dapice O, partner of Bain consulting, said Claudia D'Arpizio.

    What did the big players do?

    How did the performance of these international luxury brands suddenly become warmer after several years of shrinking stores and sales?

    Take Gucci as an example, the brand "turn over" was introduced from the beginning of 2015 in the early days of the new creative director, Michel Michele (Alessandro).

    After Michel took office, he made a series of modifications to the design aesthetics of his products, and even redesigned the classic Gucci double G logo.

    He boldly introduced brand labels and whimsical prints and sequins of animal elements, and tried many times to cross the border.

    After abandoning the previously cold and low-key style, the new designer tried to highlight young people's personality with liveliness and grotesque.

    The success of this unprecedented change is supported by earnings data.

    The new Gucci does attract a large number of young customers, such as Pan Jie in the above.

    She told reporters that she has become a fan of Gucci.

    That's true.

    Her newly bought ribbon pack is the fourth Gucci bag she has had in the past two years. She had a Dionysian bag and two different styles of GG Marmont bags.

    In addition, there are two pairs of GUCCI shoes on her shoe cabinet: Xiao Bai shoes and Lok Fu shoes are all brands sold in the past two years.

    "I am a fan of his family."

    She said.

    Francois Pino, chief executive of Kai Yun group (Francois-Henri Pinault), said in a media interview in France that 50% of Gucci's sales now come from young consumers under 35 years old, and another brand of Saint Laurent even has 65% sales from that age section.

    In his view, this attraction can continue.

    Young people are becoming the object of competition for luxury brands.

    Louis Weedon, who has always been regarded as "old and angry", has also been reluctant to step down and has joined the cross-border movement.

    In May of this year, LV launched a joint series with the Japanese street Godfather Fragment Design launched by Hiroshi Fujiwara, which is officially launched around the world. By July, the brand was also collaborate with the current red to purple New York Chao Mei Supreme, the latter's trademark Hiroshi appeared in LV blankets, shoulder bags and handbags.

    In the two joint press conference, various fashionable people came to line up at the front door of the brand store. It was said that there were many new customers for the LV network. They were all rushing to tide cards.

    "What we see is that today's luxury brand is more intense in product innovation than ever before, and the speed of updating iteration is faster."

    Zhou Ting thought, "plus the original brand advantage," (growth) momentum is very fierce.

    {page_break}

    Chinese consumers and digital sales

    Of course, there is no doubt that Chinese consumers push the sales performance of luxury brands.

    But unlike Chinese tourists who bought overseas sales to boost local sales, sales of luxury goods in mainland China also rebounded steadily.

    Take LVMH group as an example. In the second quarter of this year, sales in mainland China increased by 17% over the same period last year, higher than the 11% growth rates in Japan and Europe.

    Gioni (Jean-Jacques Guiony), the group's chief financial officer, said in the earnings report that he enjoyed the good growth of Chinese consumers, which implied that the trend of domestic consumption or tourism consumption had returned to Chinese consumers.

    Although Kai Yun group did not list the sales situation in mainland China, its sales in the first half of the year showed that sales in the Asia Pacific region were 2 billion 25 million euros, except for Japan, up 37.2% over the same period last year.

    Zhou Ting believes that in addition to the strong purchasing power of the new generation of consumers, it is also related to the real estate and securities market in the mainland.

    Warner, head of retail property research in China, believes that the recent surge in consumer sales is mainly due to the fact that the RMB exchange rate has gone down, and the major luxury brands have also narrowed the price gap between domestic and overseas commodities by discount, and have attracted some consumers to return to China.

    Another reason is that in 2013~2015, the trend of luxury consumption in China has weakened or even reversed.

    The structure of Chinese luxury consumption has undergone great changes, and its main driving force has changed from "gift purchase" to "self demand".

    "There should be a further increase in the second half, but the growth rate may not be as fierce as in the first half."

    In Zhou Ting's view, the whole market capacity is still expanding.

    As far as China is concerned, nowadays big brands are no longer as aggressive as they did in the earlier years when they expand their stores, but on the contrary, they are "conservative" or even shrink.

    "We see the trend of the entire luxury industry this year - all in" Crazy "to enter e-commerce.

    In May, Hermes's "up and down" brand made an astounding decision to open its official website to Tmall in the absence of a few 5 stores.

    "Online shopping is a trend, especially in China."

    Jiang Qionger, the founder of the brand, said in an interview with reporters in April, "many of the old customers I have contacted told me that I hope there are shops on the Internet so that they can place orders directly."

    Online shopping platforms such as Tmall are taking the opportunity to try to persuade international brands to enter.

    In August 1st, Tmall luxury platform Luxury Pavilion online, the reporter learned that the first batch of Tmall's luxury brands include Burberry, Hugo boss, La Mer, Martha Lahti and so on.

    In addition, LVMH group also has many brands to enter, the category covers all its business segments.

    Perhaps this is the right way to face the reality.

    The younger generation is accustomed to spending money on the electronic business platform. Even if it is high and cold, it must actively cater for the trend, so that we can continue to survive in this business world.

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

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