How Long Can Gucci And LV Survive?

Over the past 3 years, in order to grow in performance, the desire of luxury brands to create bursts has become more intense than ever.

The definition of explosive payment refers to the sale of goods in high demand.

Usually, we sell a lot of products with high popularity, and social media play a role in creating the chain of exploding money, because it is increasingly affecting consumer buying behavior.

The production of explosive money is more than ever.

Orientation.

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In the list of the hottest fashion brands released by LYST in 2017, the trend brands from the street occupied 1/3 of the list.

Young consumers are leading and influencing fashion trends.

Fashion search agency Lyst 2017 most popular single item

In fact, you will find that behind the extravagant brands with outstanding performance is continuous manufacturing.

Maria Grazia Chiuri, who served as Valentino joint creative director, relied on bursting Rockstud.

This Italy fashion house has swept the fashion circle, and has become the hero of doubling the turnover of Valentino.

In the background of a downturn in luxury goods, Valentino achieved a total sales of 1 billion US dollars in two years, while accessories accounted for half of the total turnover.

Some analysts pointed out that the Dior CEO Sidney Toledano may be precisely the Maria Grazia Chiuri's ability to explode money.

When it comes to attention, Maria Grazia Chiuri is also popular. Dior is trying to conquer millennial consumers by exploding money.

According to LVMH, in its earnings report, it bought Dior at $6 billion 500 million last year.

The Department has made a great contribution to the growth of sales volume.

According to statistics, Dior recorded an organic growth of 12% in the first three quarters of last year, and LVMH expects Dior fashion sales to expand to 3 billion euros in 2020.

In fact, the joint series of LV and Supreme is another form of explosive production.

The group's core brand LV launched its LV x Supreme joint series last year, which has gained positive market reaction.

LVMH has said that LV x KOONS and LV x Supreme series have received positive market reaction, which greatly enhanced the exposure and influence of the brand in social media, and made a great contribution to the growth of brand performance.

Some analysts say that LV has opened the door to the world of young people, and has won numerous attention and exposure, not only to sell explosive products, but also to activate young people's market.

Two

Balenciaga was popular in September last year, "Triple S".

Balenciaga daddy shoes

The value of the explosion is not only to sell you the explosive money, but also to sell it to other products of the brand, Gucci and Balenciaga are also the big winners.

According to the fashion headline data, in the first quarter of last year, the growth rate of Gucci was the first time to exceed that of Saint Laurent, another luxury brand of Kai Yun, an increase of 48.3% over the past 20 years. It was the most powerful growth in 20 years. Under the bold innovation and sustainable development of creative director Alessandro Michele and CEO Marco Bizzarri, it took more than 2 years to turn off Hermes, and led the luxury industry for 8 consecutive quarters.

Kai Yun group CEO Fran ois-Henri Pinault earlier revealed that Balenciaga sales increased by 40% last year, operating profit growth also reached two digits, and the best selling products were handbags and shoe accessories. The overall development of the brand was positive. According to his prediction, Balenciaga will enter the 10 club at the fastest rate this year.

"For a moderately developed luxury brand, it must change its own life at the right time, and exploding money is the most important way to rebuild itself."

In an interview with the first financial weekly, executive director of Accenture strategy Greater China said that luxury brands often need to re-establish brand value every 10 years and then follow the cycle.

In the absence of social media or underdevelopment, the popularity of the cycle is longer, the use of exquisite production technology and the continuous interpretation of the classic, luxury goods in a long time can be equated with the status of the status, this product to achieve the ultimate idea also attracts the Royal celebrities brought direct advertising effect.

However, when the main consumer began to shift to the more massive young middle class, freshness began to become a key factor in attracting interest, and luxury goods began to show greater diversity than functionality.

For example, TOD'S, the shoe brand of Italy, CO operated with Ferrari in 1986 for the first generation of flat shoes designed for Ferrari owners. 133 rubber particles were pinned to the soles and heels of the shoes. The main purpose was to make the drivers wear no skid after they wore them. However, they didn't expect to be popular after the launch. These "Doudou" made the people wearing TOD'S shoes feel very comfortable.

However, in recent years, due to the delay in the emergence of new products or explosions, TOD'S's performance is in trouble.

Its sales have recorded a decline for the 8 consecutive quarter. Brand sales decreased by 7.7% to 512 million euros in the 2017 fiscal year ending December 31st.

Affected by this, Tod's s sales volume fell 3.1% from last year to 963 million euros.

When competition is confined to the manufacture of explosive products, it is more difficult for the brand to retain consumers.

And perhaps more and more has nothing to do with classical two characters.

Dana Thomas wrote in its publication "Gods and Kings": "these changes have affected the role of creative director. Now their task is to turn creativity into high profit single product, and make the brand's influence as Nike, Apple and Coca Cola as identifiable."

In China

The pursuit of commercial interests by luxury brands is also reflected in the increasingly frequent hiring of KOL. These KOL can make use of their influence to create "explosions" and reduce the risk of their own creativity.

Luxury brands such as Burberry, Dior and Jaeger Le Coulter watch are competing to promote their products by engaging stars such as Wu Yifan, Lu Han, Angelababy and Papi sauce.

Michael Kors snatched the queen Yang Mi.

Some analysts say that consumers are scramble for a lot of red tide products. Luxury brands are also beginning to bow to traffic. Designers also clearly know how to make products from the perspective of consumers. However, with the increasingly important role of big data in fashion brands and e-commerce, consumers believe that today's burst prediction has fallen into a conservative cycle, and seemingly constantly updated products are actually repeating the past.

And Gucci is beginning to be on the alert. After all, the question of how long it can last has been accompanied by the fast turnover of luxury brands.

Gucci emphasized the concept of "counterbalance" earlier.

It is not only the integration of various inspirational references in fashion design to achieve the state of cultural competition and contending. From a more practical brand operation, Alessandro Michele is also contending with the instability of luxury industry, that is, the effective period of explosive payment is greatly reduced.

In order to strengthen and deepen the relationship between brands and consumers, Gucci has rarely implemented a new organizational structure since March 1st.

Gucci pointed out in a statement that the introduction of the new architecture aims at better application of emerging technologies to various channels based on personalization.

Marco Bizzarri stressed that in the past three years, the brand has been trying to break the traditional rules of the fashion industry. On the basis of defining the clear values, we have constantly strengthened the brand culture of people-oriented, creative and innovative. The new structure will help the brand better predict the market product development trend.

Some analysts point out that this may mean that Gucci is facing the challenge of creative exhaustion after its continuous creation of explosive products.

The rise of young consumers leaves luxury brands at a crossroads.

Nowadays, the idea of luxury goods seems to be equating with the explosive money, but the market and popularity will be even more difficult to predict. With the acceleration of fashion cycle, if the product's exclusiveness of luxury brands decreases, the symbolic value of products will disappear and fall into the conventional pattern.

Some analysts point out that luxury brands can create greater profits by using explosive thinking, but in the process, they will also inhibit the creativity of a brand.

Besides, popularity is a paradox.

When the explosion occurs, it also means mediocre, very popular, and is almost obsolete, especially in the Chinese market.