After Catching Up With Hermes, Gucci Opened For 9 Consecutive Quarters And Seemed To Be Unable To Stop.

According to the first quarter earnings report released by KER.EPA today, group income continued to be strongly driven by core brand Gucci performance in the three months ended March 31st, up 27.1% to 3 billion 107 million euros compared with the same period last year, representing a 36.5% increase in sales.

During the period, all distribution channels of Kai Yun Group recorded an increase, of which retail channel sales increased by 39.9%, and online sales doubled. The sales growth of the group in North America and the Asia Pacific region was the strongest, with a comparable growth rate of 54.3% and 42.2% respectively, mainly in the Greater China. market Push.

The picture shows Kai Yun group's main performance data for the first quarter.

It is noteworthy that, in the same period last year, Gucci, which has recorded the highest growth rate in 20 years, continues to lead, with sales surging 37.9% to 1 billion 866 million euros over the same period, a new high and a 48.7% increase in sales.

In the same period last year, the sales growth of Gucci was 51%, and such a high base has kept such a high growth. It proves that Gucci is continuing to conquer young consumers with fresh sense. 　　

Growth comparison of Gucci and LVMH's fashion leather sector in recent 2 years

Under the leadership of creative director Alessandro Michele and brand CEO Marco Bizzari, Gucci has been leading the luxury industry for 9 consecutive quarters. Last year it entered the 6 billion euro club for the first time and defeated Hermes for the first time in the annual revenue scale.

In the first quarter of this year, Gucci increased significantly in all regions of the world, especially in North America and Asia Pacific region, including China. Sales increased by 64.4% and 49.4% respectively. Japan also recorded double-digit growth in 43%, while sales in Western Europe increased 44%. 　　

The picture shows Gucci's main performance data for the first quarter.

Thanks to the selling of full price products, Gucci's retail channel sales rose 50% in the first quarter compared with the same period last year, of which the electricity business was significantly increased by the three digit service stimulated by the brand electric service launched in the US and China's official website last year. The sales volume of the wholesale channel of the brand increased by 43.6% over the same period last year.

Now, there is no need to repeat how Gucci is successful, but every action of the brand's business brain Marco Bizzarri is enough to arouse LVMH's vigilance. He has won the business leader award in the British Fashion Awards for 2 consecutive years.

Marco Bizzarri has joined the open cloud group for more than 12 years, and its influence is rising. As early as the CEO of Bottega Veneta and Stella McCartney, it has shown excellent business talents.

In just four years after Marco Gobetti took over Gucci, brand revenue increased from 3 billion 500 million euros at the end of 2014 to 6 billion 200 million euros at the end of 2017. After two years of decline, Gucci began to recover 4.8% growth in the fourth quarter of 2015. By the third quarter of 2016, the sales of Gucci began to enter double-digit growth. In the fourth quarter of 2016, sales growth was 21.4%, and the growth rate in 2017 was maintained at 40% to 50%.

From the point of view of revenue composition, the sales ratio of garments and footwear and jewellery products increased gradually in 2016 and 2017 in the key two years that made Gucci turn over. Gucci, which starts with leather products, is gradually realizing diversified and balanced development, which means that all kinds of brands have strong attraction.

Some analysts pointed out that both the creative marketing with frequency up to once a month, the awareness of advanced electricity providers or the courage to break through the traditional shackles are the key to the myth of Gucci turning over. 　　

The picture is Gucci CEO Marco Bizzarri and chairman and CEO Francois-Henri Pinault of Kai Yun group.

In terms of products, Alessandro Michele chose to continue to act independently according to his own ideas, and continuously exported its aesthetic ideas through commercialization.

According to industry analysis, Gucci breaks the popular theme of fashion, and displays distinct personality through products bearing unique aesthetic concepts. Obviously, Alessandro Michele is much smarter than other brands who blindly follow suit.

In fact, behind the high media exposure of Gucci, it is also inseparable from the professional marketing team built by Marco Bizzarri co marketing director Jacopo Venturini. The team has set up a millennium generation advisory group called the Independent Commission, which is under the age of 30, focusing on the marketing of products from the digital perspective.

According to the data, the move of Gucci and its betting on the electricity and youth market is gradually gaining momentum. At the same time, Gucci is trying to reform its structure to seek greater market potential. In March 1st this year, Gucci formally implemented a new organizational structure to further promote its global business expansion. Gucci pointed out in the statement that the introduction of the new framework aims to further strengthen and deepen the relationship between the brand and consumers, and to better apply new technologies to various channels on the basis of personalization. 　　

Gucci complied with the consumer psychology of young consumers seeking innovation and diversity.

Marco Bizzarri said 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, it continuously strengthens the culture of people-oriented, creative and innovative brand. Now it is the right time to evolve to a more flexible management structure. The new structure will help the brand better predict the market development trend and better meet the needs of consumers.

In addition, at the end of last year, after announcing the accession to the international zero fur alliance, Gucci will bid farewell to animal fur materials by the end of this year. "Today's world is changing so fast that sticking to rules is not an option at all," Marco Bizzarri said in his speech. "We are not perfect, but we are doing our best to improve what we are doing." 　　

The picture shows the main performance data of Saint Laurent in the first quarter.

During the reporting period, the performance of the group's other core brand, Saint Laurent, was also significantly improved, with sales rising by 12% to 408 million euros over the same period. In addition to the classic products, the new series, headed by creative director Anthony Vaccarello, is also widely praised by the market.

Among them, sales of Saint Laurent rose 27% in North America, 23.6% in the Asia Pacific region, 22.9% in the Japanese region, and 15.5% in sales and 32.3% in wholesale channel respectively.

Saint Laurent revised version of the new e-commerce website was launched last year, and in January this year, the exclusive entry into China's electricity supplier giant Jingdong's luxury electronic business platform Toplife. Saint Laurent female CEO first talked about business strategy, target sales sword means 3 billion euros.

Compared with the double-digit growth of Gucci and Saint Laurent for several consecutive quarters, the performance of Italy luxury brand Bottega Veneta is still bogged down, and sales fell by 6.8% to 261 million euros.

However, in the earnings report, Kai Yun group revealed that the brand new series of products were positively responded by consumers, and clothing categories performed well. In the future, we will continue to optimize the store network. At the same time, we will enhance the popularity of Bottega Veneta among young consumers through various digital strategies and mainstream social media platforms.

Sales of other luxury brands including Balenciaga, Boucheron and Brioni rose by 31% to 463 million euros compared to the same period last year. The income of all the major regions in the world increased, with the strongest growth in Western Europe and Japan, 63% and 89% respectively.

Thanks to Balenciaga's creative director Demna Gvasalia, a series of exploding series and sports shoes Triple S, chief executive Fran ois-Henri Pinault of Kai Yun group said earlier that the brand will become the next dark horse that will break the 1 billion euro turnover after Gucci, Bottega Veneta and Bottega.

According to Fran ois-Henri Pinault, Balenciaga sales increased by 40% last year and operating profit increased to two digits. The best selling products were handbags and shoe accessories, and the overall development of the brand was positive. According to his estimate, according to this growth rate, Balenciaga will enter the 1 billion euro club this year.

The fashion designer Stella McCartney, which belonged to Balenciaga and other luxury brands, reached an agreement with Kai Yun group last month. The founder of Stella McCartney will buy back 50% of the group's holdings. After the spanaction is completed, Stella McCartney will become an independent brand.

In addition to Stella McCartney, Kai Yun group has also stripped the German sports brand Puma and the outdoor sports brand Volcom in the past four months. During the quarter, the performance of the latter two was no longer included in the group earnings data.

As the global luxury fashion retail structure continues to shake, in recent years, glasses have also been seen as an exception. shoes Outside handbags, another luxury growth area. According to data agency statistics, global luxury glasses sales reached 20 billion 400 million US dollars in 2017, up 4% over the same period last year. 　　

The picture is Gucci glasses spokesman Ni Ni.

Keep walking industry The pioneer cloud group realized this trend as early as last year, set up a special glasses Department Kering Eyewear, and reclaimed the right to manufacture and distribute Gucci glasses from the Safilo of Italy glasses manufacturer.

According to the financial report data, the first quarter sales of Kai Yun group glasses Department increased by 16.8% to 108 million euros, mainly due to the sale of Gucci, Saint Laurent and Cartier glasses products. Before the release of the earnings report, Balenciaga officially announced that it had concluded its licensing contract with Marcolin, a LVMH eyeglasses manufacturer, and chose the eyeglasses eyeglasses department as its global distributor for sunglasses and glasses. At this point, Kai Yun group has collected all its brand eyewear products.

For the first quarter performance of Kai Yun group, Francois-Henri Pinault expressed its satisfaction in a statement and stressed that although the global retail environment is still full of uncertainties, the group has maintained a good momentum of growth, and all its brands will continue to surpass their competitors with the courage of innovation.

Over the past year, Kai Yun group's stock price has increased by more than 68%, and its current market value is about 55 billion 300 million euros, which has surpassed Cartire's parent company's peak and Hermes, becoming the second largest luxury group in the world.

There are people in the industry who believe that since the beginning of this year, various initiatives of Kai Yun group have further strengthened their determination to concentrate on the field of luxury goods, so as to better compete with their biggest competitor, LVMH. market Share.

Now, LVMH is fighting against Gucci through a comprehensive layout. The first step is to buy Dior fashion department with 6 billion 500 million euros to defend its fashion supremacy.

And this year, the movement of LVMH to deploy troops has been continuing. From Hedi Slimane to C e line and plan to launch men's wear, Kim Jones takes over Dior men's clothing, Off-White creative director Virgil Abloh takes over the design team of the Louis men's wear department, then goes to the takeover, and the designers who are famous for their street style are quick to take the lead brands. The intention behind this is obviously that they compete directly with young people. market 。

According to fashion headline data, LVMH (MC.EPA) sales increased by 10% to 10 billion 850 million euros in the first quarter of March 31st, and organic growth reached 13%, mainly due to its banner. fashion And the rapid growth of leather goods brand business. During the period, the sales volume of the leather goods department of the group's core rose 25% to 4 billion 270 million euros, and organic revenue grew by 16%. The growth rate was 15% in the same period last year, but there was no increase in the first quarter of 2016.

Although LVMH has never disclosed the sales of the core brand Louis Vuitton alone, but at this month's shareholders' meeting, Exane BNP Paribas global luxury director Luca Solca expects Louis Vuitton's revenue last year to be 9 billion 300 million euros, while RBC RBC analyst expects it to be 9 billion 100 million euro yuan, which means that the distance between the two companies is about 2 billion 500 million euros, which is equivalent to a distance from a fashion department.

Some analysts believe that the next open cloud group and LVMH will compete fiercely in the young consumer market. If LVMH can not effectively stop the pace of Gucci, according to the current Gucci quarter average growth rate of 20% over the LVMH fashion leather sector, the number of luxury brands will be located in Gucci or within five years.

After all, adventurous Gucci has greater ambitions, and 6 billion 200 million euros is only the starting point of Gucci.