Dior And Gucci Compete Fiercely Even Big Show Ahead Of Schedule!

Italy luxury brand Gucci announced in May this year that it will debut in Paris fashion week on September 24th night, and will "war" burn to Louis Vuitton's "doorstep".

With the rapid rise of Gucci, the competition between LVMH and open cloud is becoming more and more intense.

The French luxury brand Dior suddenly announced after the launch of the 2019 senior custom show. It will be held one day before the September Paris fashion week's spring and summer series to be held one afternoon in September 24th to ensure that it is still the first luxury brand in Paris fashion week, but it did not disclose the specific location.

What it means is that Italy luxury brand Gucci announced in May this year that it will debut in Paris fashion week on September 24th night, and will "fight" to Louis Vuitton's "doorway". In the four fashion week, Paris fashion week has been regarded as the most authoritative fashion publishing platform in the world.

Although Gucci explains that this is one of the trilogy of the creative director Alessandro Michele salute to France, but in view of the fact that Gucci joins Paris fashion week is a one-off act, some people in the industry believe that Gucci is a bold move to break the rules of the fashion industry, and Dior's adjustment day is like LVMH's response to Gucci's frequent provocation.

Obviously do not want to be the "outsider" grabbed the limelight.

Over the past 2 years, Gucci has become the most sought after luxury brand among the media and the Millennials.

In June 8th, Gucci CEO Marco Bizzarri claimed that the brand had set annual sales target of 10 billion euros, which meant that it would replace Louis Vuitton in the future to become the world's largest luxury brand.

LVMH never disclose the specific performance data of its brand, but according to Paris bank analyst Luca Solca, Louis Vuitton sales are estimated to be between 9 billion 100 million and 9 billion 300 million dollars.

Gucci broke its 6 billion euro mark for the first time last year, with sales surging 42% to 62.112 billion euros in the same period last year, winning 9 consecutive quarters.

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However, Gucci did not set a precise timetable for achieving this goal, but it is expected that sales will double at market growth rate in the coming years, and the operating profit margin will exceed 40%.

There is a view that it is different from Kai Yun group's brand Gucci and Balenciaga, which are desperate for the younger generation. LVMH, who holds Louis Vuitton and Dior two trump cards, is taking the strategy of "fight each other".

In the younger age, LVMH chose to take up a relatively small proportion of men's clothing business from the core brand Louis Vuitton. At the beginning of this year, "venture" invited Off-White founder Virgil Abloh, who was not a professional member, to be a director of men's wear, and tried to use the so-called "younger" killer to lose the spirit of Gucci.

After joining Supreme last year, Louis Vuitton seems to have carried out the street trend to the end, but at the same time it has raised concerns about whether Louis Vuitton is beginning to lose its uniqueness and scarcity.

LVMH chief financial officer Jean-Jacques Guiony responded in the first quarter earnings conference that she was not worried about overexposure. The real risk was not enough momentum to compete in the market.

Meanwhile, under the leadership of Maria Grazia Chiuri, the first female creative director in history, Dior has become the most rapidly developing luxury brand apart from Gucci.

In Louis Vuitton, Kim Jone, who is famous for its street leisure style, is trying to strip off the label of "street trend" after joining Dior menswear. He even revealed in the interview that he did not like the word "street dress" because it was difficult to define.

Facing the oppression of the common enemy Gucci, Kim Jones, of course, is implementing the strategy of group encouragement, which will not bring risks to the brand and the group.

Insiders say, Dior is the favorite brand in Bernard Arnault's heart, even more than Louis Vuitton. He will never allow Dior to lose.

Dior original CEO Sidney Toledano has been promoted to LVMH

Chief executive of leather goods department, Fendi original CEO Pietro Beccari joins Dior, Dior former president Serge Brunschwig joins Fendi.

Under the guidance of digital trend, can we maintain a high degree of brand identity while maintaining a high degree of exposure, that is, the brand can be seen and touched by the right people, thus establishing an emotional connection with consumers will be crucial.

Last month, LVMH appointed the 41 year old Bernard Arnault eldest son Antoine Arnault as the head of the group's publicity and image, overseeing the Propaganda Department of the luxury brands of the group and promoting an important global strategy.

Bernard Arnault stressed that with the success of LVMH in the first ranking group of French stock market, its luxury brands have attracted much attention from the media and the public, especially the social media. Therefore, the communication with the industry and consumers and the building of brand image will face more challenges.

Since this year, the stock price of LVMH (LVMH.PA) has risen 18%, its market value is about 143 billion 800 million euros, and the share price of KER (PA) has risen 23%, and its market value is about 59 billion 900 million dollars at present.