The Storm Is Nearly A Year. The Asia Pacific Region Is Changing D&G.

The storm has been on the way for nearly a year, and Italy luxury group Dolce& Gabbana (dujibana) is trying to revive its layout in China. In October 30th, the Beijing Commercial Daily reporter learned that D&G has recently appointed the chief executive of the Asia Pacific region and will take Shanghai and Hongkong as its main work strongholds. However, insiders remind that D&G needs to understand that changing the team is not the fundamental solution. If we want to continue to win the gold market in China, maybe we should lay down our role and be more active in dialogue with Chinese consumers.
The New Asia Pacific region CEO Carlo Gariglio has worked as a leading brand in Japan and South Korea in luxury brands such as Ferragamo, Zegna and Cartire. After joining the D&G, Carlo Gariglio will take Shanghai and China Hongkong as the main work strongholds. It is not hard to see that nearly a year after China's business stalemate, D&G hopes to use the New Asia Pacific CEO recovery market. D&G founder Stepano Gabbana and Domenico Dolce have mentioned in recent media interviews that "the Chinese market is recovering".
But the fact is that D&G is not optimistic in China at the moment. Beijing Business Daily reporter found in the public comment search, D&G has not been able to query any store information in Beijing. According to data from Gartner L2, the first quarter of 2019, the first quarter after the insult to China, D&G's participation in micro-blog's social media fell by 98% over the same period last year.
With the sudden drop in heat, there are also achievements in Waterloo. The results of the 2019 fiscal year show that as of March 31, 2019, the D&G group's EBITDA (profit before depreciation and amortization) fell 40% to 87 million 200 thousand euros, and its profit margin dropped to 12.2% from 12.2% last year. Among them, the proportion of total sales in Asia Pacific region decreased from 25% in the same period last year to 22%. In addition, D&G expects sales in Greater China to continue to decline.
Compared with D&G's weak performance, China's luxury market is booming. In the latest China luxury report 2019, McKinsey said, in 2018, the amount of luxury goods consumed by Chinese people reached 770 billion yuan, accounting for 1/3 of the world. By 2025, the total consumption of luxury goods is expected to increase to 1 trillion and 200 billion yuan. Over the past 2012-2018 years, more than half of the global luxury market growth came from China.
Almost all luxury brands have gained growth dividends from the Chinese market. The three quarter earnings report of Hermes group has shown that overall revenue has increased by 18.2% year-on-year.