The Resurgence Of Luxury Industry Has Increased The Layout Of Overseas Investment By Major Companies.

The continuous recovery of the industry has provided strong support for major companies to increase their overseas investment layout.

Shandong Ruyi group (16.420, -0.38, -2.26%) announced the completion of Switzerland on the 9 th of this month.

Although the acquisition of Bally of accessories company has not disclosed the details of the paction, Bally's original parent company JAB group and the current CEO confirmation will remain.

A small number of shares, Bally's management team, as minority shareholders, will also reinvest Bally.

According to the world clothing and shoe net, Shandong Ruyi group, formerly known as the Jining wool textile mill in 1972, was restructured into Limited by Share Ltd in 1993 and listed on the Shenzhen stock exchange in 2007. Now Ruyi group has grown into one of the largest textile manufacturers in China.

Over the past 10 years, Ruyi group has shifted its focus to global resource allocation.

According to the official website of Ruyi group, SMCP and Japan RENOWN ranked 51 and 58 respectively in the list of the 2017 top 100 luxury companies in the authoritative report.

Among them, French SMCP includes Sandro, Maje and Claudie Perlot as "Ruyi".

In 2017, Ruyi group held 2 billion 200 million Hong Kong dollars holding high-end men's wear group, Li Bang holdings, and bought YGM Aquascutum, the British clothing brand (Jagle Dan) from the Yangtze Garment Group.

After three years of deceleration, the growth of luxury goods in China was amazing in 2017.

According to the 2017 China luxury market research released by Bain consulting, in 2017, the mainland's luxury market grew faster than the foreign market, with a growth rate of 20%, the fastest growth since 2011, and the total sales volume of the market reached 142 billion yuan.

The main source of market growth power is new consumers, especially the Millennials.

The total sales volume of the global luxury goods market reached 262 billion euros (about 2 trillion yuan), of which 32% came from mainland consumers, accounting for the highest proportion.

The continuous recovery of the luxury goods industry has also become a support for major companies to invest more.

According to Reuters, Fosun Group beat the Mayhoola consortium of Warren's road parent company to inject French luxury brand Lanvin at a price of more than 100 million euros.

Fosun also owns many brands such as the American women's clothing brand St. John, Greece accessories brand Folli Follie and so on.

Seven wolves (8.470, -0.09, -1.05%) from Fujian invested in the famous brand Karl Lagerfeld operating entity in China at a price of 320 million yuan earlier, and obtained the trademark right to use KLSH in Greater China.

Shenzhen's 19.810 (-0.12, -0.60%) dress Limited by Share Ltd has also acquired the German women's clothing brand Laur L, the American light luxury brand Ed Hardy, the French designer leisure brand IRO and the Chinese American designer brand VIVIENNE TAM mainland China's operation right.

Although offline channels are still the main channel for luxury sales in China, online sales are also worth mentioning.

Luxury online consumption accounted for 9% of the total luxury consumption, of which cosmetics accounted for 15% to 20%.

Gucci, the parent company of luxury brand, broke 15 billion euros in its fiscal year 2017, and its net profit increased by 120% to 1 billion 780 million euros.

Among them, Gucci's annual sales volume is 6 billion 210 million euros, up 42% over the same period, accounting for 40% of the total revenue of Kai Yun group.

The growth of Gucci benefited from the opening of e-commerce services in China's official website in the second half of last year. The growth of e-commerce channels exceeded 80%.

According to the 2017 US fashion brand digital index report released by L2, Gucci defeated 89 other competitors in 2017.

In recent years, with the continuous improvement of the digital level of the luxury goods industry and the decline of the average age of consumers, luxury brands are generally aware of the importance of developing digital channels in China.

In the 2017 China luxury market research, Bain referred to the large scale investment in digital marketing of major brands, because digital media had a huge impact on the fashion consumption concept of young consumers.

Jingdong and Alibaba are also constantly distributing luxury goods. Alibaba Tmall Luxury Pavilion on 2017 is a B2C invitation platform for Tmall to sell luxury goods. To be a member, the minimum consumption amount is $15000 per year.

After cooperation with Jingdong luxury platform Farfetch, TOPLIFE, a luxury service platform developed by Jingdong in October last year, has begun to open App to users.

At present, TOPLIFE has already launched La Perla, Emporio Armani, Rimowa, B&O Play, Ports 1961 and Trussardi cooperation brands.

The revival of luxury goods is partly due to the continuous improvement of China's economy. On the other hand, it is because the government has introduced relevant policies and has taken the initiative to readjust its economic structure and further encourage domestic consumption.

I believe that with the strong push of millennial consumers and online consumption, luxury goods will remain strong in the Chinese market, and the scale of Chinese companies' acquisition of luxury brands overseas will continue to grow.

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