GUCCI Side Line Products Do Not Give Enough Power To Slow Down In The Three Quarter.

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Big cards are tough days.

After BURBERRY and LVMH group lamented that the situation was not good, GUCCI also said that its operation in China was far worse than before.

During this period, the sub line products often support the luxury brands, but the secondary line of GUCCI (GUCCI) is not big enough.

"GUCCI started in bags in China, but there are watches, jewellery and other product lines, but Chinese people are not familiar with it."

Recently, GUCCI said that it became more and more difficult to operate in the Chinese market, and the competition became more and more intense.

Data show that the brand's revenue growth in the three quarter of this year was only 7%, showing a downward trend compared with the 12% increase in the first quarter and 10% growth in the two quarter.

The luxury brands that report declining performance are not just GUCCI, but the sales of fashion and leather products of LVMH group are not as good as expected. Sales growth in the third quarter is only 5%.

Under the dual pressure of global economic downturn and China's economic slowdown,

It is not surprising that China's performance is not satisfactory.

In addition, more and more consumers in China are beginning to tire of the LOGO offensive and the adverse effects of counterfeit counterfeit products. The problem is not just the economic situation.

It is worth noting that GUCCI has been doing more in China in recent years than other similar brands.

Pushing men's clothing on business, plans to add 10 stores in China this year and offer discount stores in Guangzhou and Tianjin.

GUCCI actively explored the Chinese market with a keen heart, but also failed to escape the influence of luxury cold current. Where is the reason?

Lack of strong support for secondary line products

Speaking of GUCCI, Miss Wang, who works in a media company, first thought of "bamboo bag". "When I go to GUCCI, I only look at bags."

Other products will not be too concerned, because I think GUCCI is the most famous package.

It seems that many consumers have such a logic that a product of a brand calls the loudest, so the brand is only looking at the product.

If this logic is established, many problems may not be difficult to explain.

Private luxury goods network CEO Le Yaohui believes that in recent two or three years, GUCCI products are becoming more and more dull, and the explosive power of design is weak, and the attraction to consumers is not as good as before.

Under such a premise, the poor economic situation has led to a decline in the purchasing power of the core consumer group of GUCCI, middle class white-collar workers. For these consumers, the most influential and influential star product of GUCCI is the bag.

The most famous products are not sold well, and the other side products of the brand have not been able to effectively compensate for this shortfall.

"The reason for this situation is that Chinese people do not know enough about the brand of GUCCI. GUCCI started in bags in China, but there are watches, jewelry and other product lines, but Chinese people are not familiar with it."

Duan Zhiqiang, director of fashion 100 network operation analysis, said: "the brand should improve the sales structure inside the brand, seek products with new growth points, and familiarise the customers."

Second tier market is hard to rescue

From GUCCI's decision, the brand seems to think that these problems exist only in relatively mature first tier cities, and if they put their eyes on less critical men's clothing business and a slightly astringent two or three line city, the situation may be better.

GUCCI is famous for its women's luggage and bags. If the brand is also gender, maybe in the Chinese mind, GUCCI is a beautiful woman.

Duan Zhiqiang said that men's clothing sales are no more than women's clothing. However, it has always been a lack of flexibility to express the brand meaning from a male perspective. Under the premise of brand women's image being deeply rooted in the hearts of the people, GUCCI is the key to whether the men's clothing business can gain tremendous influence and a large number of loyal customers.

In addition, China's two or three tier city market has been radiated by the first tier cities and overseas channels. The purchasing power of the crowd to buy luxury goods in the first tier cities is not very high, and some people are keen to buy luxury goods on behalf of buying and traveling abroad.

Brand to the two or three line city shop also need a certain time to wait for the consumer's verification and recognition, over two or three stores in the city, may also overdraw part of the loss of superiority of the first tier cities customers.

Duan Zhiqiang believes that "the most important thing for the brand is the sale of the first tier cities. The role of consumers in the first tier cities is equivalent to the" setters ", which is a model that affects the whole country.

If you open a shop in a two or three line city, it is best to choose a city with strong consumption and radiation capability.

Extended reading

Luxury line

Every luxury brand has its own most famous fist product or series, and there are many brands that have good performance on multiple product categories. Diversified category structure can effectively enhance brand reputation and customer stickiness.

Chanel (Chanel): many young girls have Chanel2.55 bags as a dream, whether it is entry-level classic or constantly promoted upgrade, the charm of 2.55 enduring.

However, Chanel's perfume and watches also made a huge contribution to the brand. Chanel NO5 perfume made 5 a magic number in the perfume industry, representing a beautiful legend.

Ferragamo (Salvatore Ferragamo): the shoes made by shoemaking are famous for their hand-made leather products with excellent design and exquisite workmanship.

At the same time, brand is

And jewellery also has a good performance.

In the first half of this year, Salvatore Ferragamo co operated with Bvlgari Ferragamo, the former owner of Bvlgari jewelry brand, to launch a new Valentine's Day special jewellery series, "Intreccio".

Cartire (Cartier): Cartier, known as "the jewellery merchant of the emperor", is also hard to distinguish its jewelry and watches.

Ballon Bleu de Cartier blue balloon watches become the best seller, and Cartier's personality jewelry is also an essential product for Chinese and foreign stars to take red carpet.