Can The Designers Be Able To Take The Place Of The Designer?

In September and October, with the basic disclosure of the annual and semi annual performance of enterprises, the trend of the development of major fashion brands has finally surfaced since 2019. The latest data and market trends show that the days of several big luxury clothing and jewellery giants seem to be a bit tough.

In 2017, "Kate Spade" was swallowed up, making the world's light luxury pattern from the "three pillars" into the "two giants" mode of Coach parent company, Tapestry, recently released its fourth quarter performance report. The report shows that its net sales in the fourth quarter rose 2% to $1 billion 510 million compared with the same period last year, and net income fell 29.7% to $149 million, down from market and analysts' expectations. Tapestry group's stock price fell more than 22% on the day of its earnings announcement, setting its biggest decline since 2001.

In September, Tapestry group promulgated a "personnel appointment". In September 4th, Tapestry group announced that the original CEO Victor Luis was officially leaving. The Group Chairman Jide Zeitlin will become the new CEO. Victor Luis is the planner and executor of Tapestry group's "multi brand strategy" in the past four or five years. When he was in office, Coach group, the predecessor of Tapestry group, acquired Stuart Weitzman in 2015, and acquired Kate Spade in 2017, and renamed the group "Tapestry".

Another group, which also took many brand lines and was formerly known as the Michael Kors group, released the latest 2019/2020 financial year first quarter data. During the period, the net sales volume of Capri group increased 11.9% to 1 billion 346 million US dollars over the same period, slightly below the average 1 billion 370 million yuan us dollars expected by analysts. Among them, the Capri Group acquired Versace in December 2018 as a "performance cow". During the period, the brand's comparable store sales increased double-digit. However, the performance of Michael Kors is not good, and net sales in the period dropped by 4.8% to 981 million US dollars over the same period. Capri group said in its earnings report that the main reason for the decline of Michael Kors sales lies in its excessive dependence on department stores. With the rapid development of online shopping, the development of department stores is in a predicament, which has a great impact on the sales of Michael Kors.

In the field of fashion, the luxury brands in the jewelry industry also encountered similar development difficulties in the first half of 2019. In addition to the Folli Follie, which was deeply in the rumour of bankruptcy due to "store data fraud", the performance of Danish jewellery brand operator Pandora Pandora in the second quarter of 2019 also made many people "surprise". During the period, the group's sales plunged 10% to 4 billion 690 million Danish kronor (about 4 billion 900 million yuan), net profit plunged 50% to 526 million dkrona (about 552 million yuan), group CEO said that the decline in the performance of this season was mainly affected by the decrease in the volume of physical store customers. In the future, consumers will be reawakled by a series of creative marketing activities such as repurchasing wholesale inventories, reducing discounts, and a series of creative marketing activities.

According to the Research Report of Everbright Securities Research Institute, "light luxury" is a luxury that can be affordable by a wider group. Its main product price is between 150 US dollars and US $-1500. Light extravagant products have the luxury gene and high quality. They focus on brand image in marketing, high price performance ratio, and more attractive price. The design accords with the needs of young people.

But in recent two years, light luxury products are not popular among young people. The latest China luxury electronics business report 2019 released by the customer research institute shows that nowadays, luxury goods purchased by young consumers in e-commerce channels are mainly "hard and luxurious" products. In online purchases, jewelry accounts for up to 31%, apparel accessories account for 19%, and watches account for 18%. Compared with light luxury brands, they are more willing to spend more money on tide cards or niche brands.

Compared to the light luxury brand, in the first half of 2019, except for the GAP group that was in the "spin off" situation, ZARA, H&M and fast fashion tycoons such as UNIQLO were able to perform well. Careful consumers can find that in recent quarters, these fast fashion tycoons have begun selling thousands of dollars of "customized" or "designer joint names" products in addition to their increasingly active "touches". Although it is too early to discuss whether fashion designers can replace light extravagance, it is believed that many people will have a certain degree of judgement after observing and analyzing two successful cases of "fast fashion designer".

Giambattista Valli * H&M series

In May 24th, with the opportunity of the Cannes dinner, H&M announced the Giambattista Valli, the designer of this year's joint name. Cannes activities, Kendall Jenner, Li Yuchun, Chiara Ferragni and so on are wearing a series of preheating new products, it can be said that "the product is not out, marketing first fire."

The joint name of Giambattista Valli and H&M is not the same as before. Giambattista Valli is a designer brand that only makes high dress. In addition to the main line garment series, the designer also launched a younger Giamba in 2014. With the "high fixed" label, this series of single products has a higher "style". Moreover, the price of the joint series will not be much higher than that of the high standard dress. The cheapest one is priced at 1490 yuan, and the most expensive single product is not more than 4000 yuan, which is highly stylist personal style.

KAWS * UNIQLO joint UT

UNIQLO will launch a series of T-shirts every summer, and this year is no exception. In June, UNIQLO and New York fashion artist KAWS jointly launched a series of T-shirts, which had been selling unusually hot. Even the offline stores even appeared the phenomenon of consumers drilling doors and dressing models, which became a hot topic.

However, many industry people pointed out that the "KAWS * UNIQLO" joint series triggered a panic buying incident, there are some occasional factors, with a certain degree of isolation. First of all, in the past one or two years, KAWS's "appreciation" has been quite impressive. His work, THE KAWS ALBUM, was shot at HK $5 million at the Sotheby's auction in Hongkong in April 2019, and finally traded at HK $100 million. His "XX" BFF (Best Friend Forever) doll, which he worked with in Dior in spring and summer of 2019, sells for $7500. In recent years, he co worked with other brands, most of which cost more than 1000 yuan.

But most experts agree that "art and crossover" is indeed a more advanced "product upgrading". Fast fashion in the joint with artists and designers, the product of "emotional" response becomes richer, and products with emotional echoes will easily become the "explosive products" that trigger "phenomenal" buying.