Who Will Be The Next "Master" Of Salvatore Ferragamo?

Behind the bad performance of luxury shoe brands is over reliance on classic styles and a single product structure, which makes consumers lose their sense of freshness.

Since opening cloud group last week

After the distribution of shares, the group's next move has always attracted much attention.

After announcing the decision, Fran ois-Henri Pinault, chairman and chief executive of Kai Yun group, said that the distribution of Puma shares to shareholders is an important milestone in the group's history. This means that the group will devote itself to the luxury industry in the future and continue to win more through bold and continuous innovation.

Share.

According to the world clothing and shoe net, Kai Yun group has allocated 70% of Puma shares to shareholders, of which Art MIS will become a long-term strategic shareholder holding Puma 29% shares.

Art e MIS holds 40.9% of Kai Yun group, while Kai Yun group will continue to hold Puma 16% equity, and about 55% of the shares are in the capital market.

After divestiture of Puma, some analysts believe that the plan to focus on the luxury sector of the group will have a big move, it is very likely to start the acquisition.

The picture shows the brand of Kai Yun group.

EQuita Group, a global business consultancy, recently boldly predicted that the next goal of Kai Yun group or Italy luxury brand Salvatore Ferragamo (BIT:SFER) is in a report.

Giuseppe Marsella and Luca Solca, a bank analyst in Paris, France, also believed that the gradual pition strategy of the brand was too slow. If the new management could not make effective decisions, they would be forced to sell.

In fact, the performance of Salvatore Ferragamo has not improved for the first time, and it is not the first time that it has been sold.

Global tourism retail downturn, and

Salvatore Ferragamo slowed down in early 2016, and sales slowed sharply in the 2016 fiscal year to just 1% to 1 billion 440 million euros.

In the first 9 months of September 30th as of fiscal year 2017, Salvatore Ferragamo fell 0.9% to 1 billion 5 million euros, while net profit dropped 28.3% to 7 million 900 thousand US dollars.

Core shoe department sales, which account for 43.2% of total revenue, fell 1.2% to 432 million euros.

The picture shows Salvatore Ferragamo's share price changes over the past year.

Now, the pformation of Salvatore Ferragamo, which has 90 years of history, is attracting close attention from the industry.

Founded in 1927, it was one of the world's leading conglomerates in the field of luxury goods, mainly footwear, leather products, ready-made garments, silk fabrics, accessories and men's and women's fragrances.

The products also include glasses and watches produced by licensed manufacturers.

Salvatore Ferragamo was listed in June 29, 2011, and its large number of hundreds of family members held shares in the listed group.

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The picture is Salvatore Ferragmao classic shallow shoe.

After the departure of the original creative director MassimilianoGiornetti, Salvatore Ferragamo respectively appointed Paul Andrew as the first director of women's shoes design in November 2016. Fulvio Rigoni is the design director of women's wear garments. Guillaume Meilland is the design director for men's wear garments, aiming to achieve balanced growth of all kinds of departments.

However, the performance of the three creative directors does not seem to have a positive impact on the growth of brand performance.

Since the design of FulvioRigoni, the creative director of the women's wear, has not been able to respond positively to most consumers, last October, Salvatore Ferragmao appointed the creative director of women's shoes Paul Andrew to take over the design of women's clothing series. Its first series will be the Salvatore Ferragamo 2018 autumn winter clothing series.

Guillaume Meilland continues to dominate the men's wear series.

The picture shows the 2018 spring summer series designed by FulvioRigoni.

The group CEO EraldoPoletto said that consumers need a consistent brand image and aesthetic system, and brands need to move from shoes to natural evolution.

The picture shows group CEO EraldoPoletto.

Eraldo Poletto joined Salvatore Ferragamo as CEO in August 2016, and had previously held the same post in Furla.

It is reported that Eraldo Poletto has successfully helped Furla achieve the goal of doubling sales in the 5 years of Furla, and is known as the soul of reviving Furla.

Now, Salvatore Ferragamo has obviously pressed all the chips on Eraldo Poletto.

Some analysts have pointed out that behind the bad performance of luxury shoe brands is over reliance on classic styles and single product structure, while industry trends are changing rapidly, and product updates are too slow for consumers to lose their freshness.

At present, the pure accessories brand is generally facing the plight of whether the product line is diversified. In addition, more and more smart consumers may feel that handbags are more worthy of investment than shoes.

For sale rumors, although group chairman FerruccioFerragamo has denied earlier, but some analysts said that with the fashion industry ushered in the "M & a fever", Salvatore Ferragamo in the mire of performance has become the target of luxury goods competition, and Kai Yun group has the most potential.

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In the three months ended September 30, 2017, the total sales of Kai Yun group rose 23.2% to 3 billion 920 million euros, thanks to the strong performance of Gucci.

The Group recorded growth in all regions of the world, and its luxury sector revenue grew by 32.3% over the same period. Its core luxury brand Gucci beat all competitors, and sales surged 49.4% to 1 billion 550 million euros, again exceeding Hermes.

The picture shows the third quarter of Kai Yun group.

Although the tax evasion case of Gucci13 billion in December last year involved executives of the parent company, the inspection agency said it was suspected of illegal business practices, but this has not affected the company's share price and performance.

However, some analysts believe that the possibility of acquiring Salvatore Ferragamo by opening the cloud is very low, because earlier group CEO said after the earnings report of Fran ois-Henri Pinault, the global geopolitical and economic politics is still unstable, especially the frequent terrorist attacks in Europe or the European tourist industry will once again cool down, so it will maintain a cautious attitude.

When it comes to whether plans to take the takeover action to further stimulate the growth of group performance, Fran ois-Henri Pinault a year ago believed that the group's brand portfolio was just good at the moment, and sales were steadily rising, and there was no acquisition plan for the time being.

But the fashion industry is changing at any moment. Will Fran C ois-Henri Pinault change her mind? After all, the strong rise of Gucci has pushed the opening of cloud group to the peak of its performance. The stock price has increased by 80% in the past year, and its market value has exceeded record breaking by 50 billion yuan.

In the past 1 years, the share price of Salvatore Ferragamo has almost no growth, and its market value is about 3 billion 750 million euros.

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