The Last Annual Report Of The Traditional Luxury Industry Has Also Been Released.

According to the world clothing and shoe net, the last annual report of the traditional luxury goods industry has also been released. The French Le Monde World Journal and the Swiss magazine "Bilan" have obtained the 91 annual report of the Chanel International BV of the French Brand Company Chanel SA Chanel group, Holland holding company, which is made by Deloitte DDT.

As a rare private monopoly company in top brands, Chanel

The earnings report has always been particularly interesting, and is usually more than half a half a year later than other competitors Gucci Gucci parent Kering SA KER.PA (KER.PA) Kai Yun group and Louis Vuitton Louis Vuitton parent company LVMH SE (MC.PA) road.

Core data of Chanel holding company in 2016:

The income was $5 billion 670 million, down 9% from the same period last year.

Net profit fell from $1 billion 340 million to $874 million, or 34.8%.

Net profit margin also dropped by 610 basis points, from 21.5% to 15.4%.

Operating profits plummeted 20% to 1 billion 280 million dollars.

The operating profit rate plummeted by 320 basis points to 22.5%.

The dividends of Jewish Jewish Alain Wertheimer and G e rard Wertheimer brothers jumped by 108%, from $1 billion 640 million to $3 billion 410 million.

Income analysis:

The decline of revenue mainly includes three aspects, two of which are changes brought about by investment portfolio and organizational structure. On the other hand, it is due to macro economy, industry environment and regional political factors: 1) brand companies in Britain are stripped and sold to another entity; 2) beauty business Bourjois sold to Coty Inc. (NYSE:COTY) in Paris in 2016, resulting in a decrease in income in 2016; 3) the terrorist attacks and consequent changes in European tourism consumption pattern brought negative effects to the company in the first half of the year, but sales increased by 11% in the second half of the year.

In the 2016, Chanel International BV's revenue remained basically stable if the 1 and 2 parts were omitted.

Compared with the 17% plunge in revenue in 2015, the performance of Chanel Chanel was undoubtedly improved in 2016, but if compared with the main competitors LV, Gucci, Hermes and even Burberry, 2016, from the point of view of revenue, Chanel Chanel is still disappointing. Last January, CEO Maureen Chiquet quit from Chanel SA Chanel, which is basically a set tone, and 2016 is still an adjustment period of the group.

Profit analysis:

Compared with income analysis, profits usually reflect the operation of a brand. However, for a private holding company like Chanel, Chanel, because of possible tax avoidance problems, profits often fail to reflect the actual operation. However, it can be concluded that the profit increase of the luxury goods industry is almost impossible under the condition of stable income.

From the perspective of 22.5% of operating profit, this level is very low among top brands. The operating profit margin of several top luxury goods is around 30%. Therefore, it can be seen that in 2016, the brand has not been improved in terms of cost control, and in addition, sales promotion efforts can also be increased. In fact, this shows that Chanel Chanel has impaired its reputation in the past two years.

The sharp decline in operating profit has also happened before Gucci, which is also caused by sales decline and discount. Meanwhile, brand restructuring and reform have led to an increase in costs related to artificial, marketing and shop renewal. If sales can not progress after restructuring, profits and profit margins will shrink.

In the case of a slowdown in the overall income growth of the luxury goods industry and even a possible recession, Chanel Chanel's "smooth" is in fact losing its market share, because other brands such as Gucci are growing by grabbing the purchasing power of competing brands such as Chanel.

If Chanel wants to be restored to a normal position, the future will not only be "stable", but on the contrary, it is necessary to regain the lost share through better growth of peers, just like the performance of Gucci.

Chanel's problem analysis:

Judging from the performance in 2015 and 2016,

At present, there must be some problems. In the absence of real full-time CEO, how to adjust the brand under the leadership of the big boss, and also the successor of the designer Karl Lagerfeld, which has a considerable impact on the future direction of the brand.

1) Goodwill problem

Of course, Chanel still firmly occupies the seat of top luxury goods, but in the past two years, Chanel performance can not be passed in terms of performance, events, products and designers.

Of course, the biggest impact on Chanel goodwill is to return to the "global coordinated pricing" strategy in 2015.

This big price reduction strategy may promote sales in a short time, but the stimulating target customers are not real Chanel loyal customers. On the contrary, they may lose some loyal customers, or at least loyal customers' purchasing power.

No fashion Chinese network has analyzed this "global coordinated pricing" strategy repeatedly. The brand that responded does not really improve. On the contrary, LV and Gucci Gucci's two publicly opposed brands have maintained excellent growth, especially Gucci, which has won new customers and has gained more young consumers.

The spread of luxury goods industry has existed in the past 30 years. This price difference has become the regulator of the luxury industry, including the balanced development of various markets, the adjustment of profit and profit margins, and more importantly, the luxury industry has maintained the exclusiveness of the industry by raising the price. Or, the price difference has become one of the important characteristics of the luxury industry.

Price cuts will not only save the luxury industry, but on the contrary, it will probably destroy the luxury goods industry, but brand Chanel has chosen this path.

2) management issues

Chanel's management is currently in a semi vacuum state, without CEO, and has a designer over 80 years old with various titles and positions.

Compared with a CEO, Karl Lagerfeld's position may be more important for Chanel.

From Maureen Chiquet to Karl Lagerfeld, it is shown that the management strategy of the Wertheimer brothers is conservative.

Instead of changing Karl Lagerfeld adventure, it is better to continue to use, after all, there are so few well-known and qualified designers in the market. Before Hedi Slimane had rumors with Chanel, but maybe only Hedi Slimane, so sales and marketing personnel may have sex with Chanel.

3) innovation

"Karl Who" may be "self mocking" 7 or 8 years ago, but today it may be a real problem.

From the past few seasons show, Chanel is a big game of formalism. After a while, the casino will be a little more than the airport, and then the feminist brand will be the birthplace of the brand. Instead of innovation, it will feel like a Chinese show 10 years ago.

This formalism is actually weary of consumers, including Chanel's "cafe" in Shanghai, not only being less Tucao seats but also difficult to drink by Tucao coffee, which is more than form.

There is certainly no problem in the form of content in the marketing of luxury goods, but there is also a balance that can not be reused in a model.

Before, even Chanel had released the work of an unknown designer, Mati Ventrillon, directly to the show, which all reflected the lack of innovation in Chanel.

Innovation also includes the pformation of online channels. Chanel has always been one of the more conservative brands. This is equally understandable, because Chanel has always been the most stringent and prudent in terms of channel and shop opening. However, the online function is not limited to the sale, but the luxury industry is more concerned about marketing and experience. In this respect, there is no Chanel classic case, especially in the case of Gucci, Burberry and Dior.

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