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    In The First Half Of This Year, The Performance Of Global Luxury Brands Is Bright.

    2019/8/1 12:39:00 0

    Luxury Goods

    Recently, the major luxury goods groups announced the performance report of the first half fiscal year and the two quarter of 2019. In general, the industry showed a growth trend, especially in the Chinese market. The industry pointed out that this has great relationship with the change of Chinese consumer groups.

    China's market performance in Asia Pacific region is bright.

    The major luxury groups have released performance reports, and the industry is generally improving. The Asia Pacific region, especially the Chinese market, is particularly outstanding.

    Recently, the French luxury group Herm (s) announced sales data for the second quarter of fiscal year 2019. Thanks to the excellent performance in the Asia Pacific region, especially in the Chinese market, and the rapid growth of garment and accessories business, Hermes's second quarter sales increased by 14.7% over the same period last year, reaching 1 billion 674 million euros, representing an increase of 12% over the same period.

    According to the region, the second quarter of French sales of Hermes increased by 6.2% compared to the same period last year, reaching 221 million euros; sales in Europe (excluding France) increased by 8.2% to 283 million euros; Japanese sales increased by 15.7% compared to the same period last year, reaching 196 million euros; Asia Pacific (excluding Japan) sales increased by 20.7%, reaching 643 million euros; sales in the Americas increased 15.4% to 299 million euros, while sales in other regions increased by 13.3% to 31 million euros.

    Axel Dumas, chief executive of Hermes, said: "in the first two quarters of this year, sales of all regions and all business lines in Hermes were excellent. Steady growth means that the strategy of regionalization of the group is effective. With innovative capability, professional knowledge and technological mode, Hermes will continue to explore the international market.

    A few days ago, Italy's luxury brand alliance (Moncler) announced its 2019 first half earnings report. The data show that the European Union's revenue in the first half of this year has increased by 16% compared to the same period, and increased by 13% over the same period. Among them, the league's performance in the second quarter was mainly due to the strong performance of the retail channel.

    Regionally, Italy's domestic revenue rose by 8% to 68 million 400 thousand euros, accounting for 12% of its total revenue, while Europe, the Middle East and Africa grew 15%, to 169 million euros, accounting for 29.6% of total revenue. Asia and the rest of the world grew by 18% year-on-year, to 249 million 300 thousand euros, accounting for 43.7% of total revenue. Revenue in the Americas grew by 15% over the same period last year, reaching 83 million 500 thousand euros, accounting for 14.7% of total revenue.

    "We can see that the development of the market is very balanced, and the growth of the Chinese market, including Chinese consumers shopping overseas, has become the world's leading brand," he said. Although the number of Chinese tourists to the United States has declined recently, it has promoted the rapid growth of the mainland market from side to side, and the consumption activities of Chinese tourists in Europe, especially in Italy and the United Kingdom, are also increasing.

    According to the 2019 half year and two quarter earnings released by LVMH group, the second quarter results of the whole group, especially Louis Weedon (Louis Vuitton) and Dior (Christian Dior), were expected to benefit from the accelerated growth of the fashion bag sector.

    Data show that in the second quarter, LVMH Group sales grew by 15% over the same period, reaching 12 billion 500 million euros, an increase of 12% over the same period, which is higher than the 10% growth rate of analysts. Sales of fashion and leather goods increased by 20%. Markets in the US, Asia and Europe have enjoyed good growth.

    Although the slowdown in economic growth has triggered concerns about the growth of China's luxury market, LVMH has further strengthened its marketing efforts in the Chinese market, which has accelerated the acceleration of the group's growth.

    Bernard Arnault, chairman of LVMH group's board of directors, points out that continuous brand innovation is the key to success. This year's luxury market is not only a continuation of growth momentum, but also ushering in the best year.

    Luxury goods cater to young people

    Strong demand in China's luxury market provides a basic support for the growth of leading brands. Young people have become the absolute core. Luxury brands are making every effort to please young consumers.

    According to McKinsey's "China luxury report 2019" released by the third party consultancy, China has contributed more than half of the global luxury market in 2012-2018 years, and this proportion will continue to rise to 65% by 2025. It is no exaggeration to say that the Chinese get the luxury goods.

    BCG (Boston consulting company) and Tencent released the "2019 China consumer goods market consumer behavior insight" report shows that through the analysis of China's luxury market environment and consumer groups, China currently occupies the global luxury goods market 1/3, the annual light trend continues, and people under the age of 30 have invested 42% of high-end luxury goods. In terms of luxury consumption, the rise of China's younger generation is faster than most people think.

    Bain global partners Bruno analysis, the global luxury market is entering healthy growth "new normal". In his view, the strong demand for luxury goods by Chinese consumers, the continuous rise of the electricity supplier channels, and the growing influence of the younger generation of consumer groups are the main factors contributing to this trend.

    The rise of luxury consumption among young people is comprehensive and thorough. In a recent industry report, Bain said that the global luxury market is expected to grow steadily this year. Under the new normal surface, the Chinese Z generation (who is born in the middle of 1990s to 2010) will become the new group that may change or even subvert the luxury industry in the future.

    Moncler, chairman and CEO Remo Ruffini of Italy luxury brand, once said that luxury circles attracted a lot of attention, many of them young people. RemoRuffini said that adaptability is crucial to the success of luxury brands in a rapidly changing fashion market environment. Therefore, luxury brands are investing more in product innovation.

    The China Commercial Daily reporter has learned that in the past two years, the league has been able to adopt the strategy of "younger", and has launched the Genius series, including the monthly series designed by different stylists, in order to cater for younger, more changeable customers. RemoRuffini said: "just like our slogan" genius is born crazy ", maybe Moncler is a bit crazy in people's eyes, from sleeping bags to making down jacket to make our iconic products, and then to the first launch of MonclerGenius. Although it looks crazy, we always have a clear plan for development and a rigorous implementation line.

    At the same time, with the rise of China's Alibaba, Jingdong and other e-commerce platforms. Today, the diversification needs of channels are most significant. Especially when the channel expansion of traditional luxury goods line is slowing down, the demand of luxury brands for online channels has increased rapidly. Bain predicts that the market share of luxury online channels will rise significantly and will rise to 25% by 2025.

    Zhang Peiying, an honorary consultant to China Luxury Association, told the China Commercial Daily reporter that under the influence of China's Internet, luxury brands must have a way of centralization when they choose brand positioning and brand marketing strategies in the Chinese market. We should dare to "shock" with the Internet platforms such as China's social networking providers, so as to collide with more sparks.

    Hermes has paid special attention to the Chinese market, and has achieved far exceeding expected sales and passenger volume through online and offline retail channels. In June this year, Axel Dumas, chief executive of Hermes, revisited the Chinese market when he talked about future plans. He said: "the sales strategy of Hermes has achieved excellent results in China. In the future, Hermes will open more stores in China and strive to open up a new city every year. In addition, Hermes is also considering the cooperation with local suppliers in China this autumn.

    In June this year, Louis Weedon's digital marketing in China took another exploratory step. Louis Weedon became the first luxury brand in mainland China to invite fashion bloggers to take over the official WeChat public number, and was also the first luxury brand to enter the Xiaohong Book brand.

    For the big cake in the Chinese market, the new young group has already occupied a certain market share in the luxury market. But Zhang Peiying told reporters that luxury goods in order to have a steady growth in the Chinese market, the ability to attract new customers is essential. At the same time, it is also necessary to have the ability to re purchase old customers and the brand premium. These three are indispensable.

    China's luxury market has won the world. Whether it is channel transformation or upgrading of design ideas, increasing product innovation and creativity to attract the millennial generation, all shows that luxury brands are trying to please Chinese consumers.

    Source: China business network: Chen Qing

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