Gucci, Prada Performance Is Expected To Decline Strongly, We Do Not Want To Buy So Much.

In the two quarter of 2019, the luxury goods giant LVMH and Herm s (Hermes) have broken the expected performance decline with their strength, and their bright results are inseparable from the strong support of the Chinese mainland market.

McKinsey points out that in the new normal of China's slowing economic growth, the luxury market is booming.

Between 2012 and 2018, more than half of the global luxury market growth came from China. Looking ahead, it is estimated that this proportion will reach 65% by 2025.

In the first half of this year, the luxury brands were a bit of joy, a few worries, and 28 divisions became more and more obvious.

As of June 30th, Prada group's sales grew by 2% to 1 billion 570 million euros, a slowdown from 3.3% in the same period last year, lower than the average growth rate of global luxury goods.

Among them, group brand Prada sales increased by only 1% to 1 billion 237 million euros; Miu Miu sales fell by 8% to 235 million euros. Church's sales increased by 3% to 32 million euros.

In the first half of this year, Gucci sales increased by 19.8% to 4 billion 617 million euros, an increase of 44% over the same period last year, while sales growth in the second quarter was 12.7%, which is also lower than that of 35% in the same period last year, the lowest growth rate in three years.

Gucci grew by 24.6% to 2 billion 326 million euros in the first quarter of March 31st, and its growth rate slowed sharply compared with 37.9% in the same period last year. It is understood that more and more consumers said that the difference between each quarter is not large, lack of freshness.