Luxury Brands Will Gradually Become Warmer As Well As Brand Luxury Products.

According to the world clothing shoes and hats net, we are in the doldrums.

Environment ups and downs for a long time.

Brand, gradually see the dawn of warmer.

with

The group represented a number of international luxury group recently released results show that the recent group performance has achieved double-digit growth.

Among them, LVMH Group sales grew 13.6% year-on-year; Kai Yun Group sales increased 23.2% year-on-year, while Hermes in the first half of fiscal year net profit increased by 11%.

In the face of the trend of upgrading consumer habits, luxury group began to try to touch new retail mode such as flash store, and replaced core designers to bet on young consumer groups.

However, some analysts believe that in the new shopping era centered on the product itself, the luxury camps with brand as the core will be squeezed from high-end niche brands or popular brand products.

Brand performance recovery

There are signs of recovery in the luxury goods industry, and the performance of many luxury goods groups has rebounded markedly.

LVMH, the international luxury group, released its three quarterly report. The group achieved sales of 10 billion 380 million euros in the reporting period, up 13.6% from the same period last year. Kai Yun group also said in the three quarterly report that the group's total sales rose 23.2% to 3 billion 920 million euros, of which the performance of Gucci and Yves Saint Laurent was eye-catching and sales volume increased 42.8% and 17.7% respectively.

Relative to LVMH group and Kai Yun group's strong performance, the performance of the group is still in the stage of gradual recovery.

According to the peak group, sales increased by 10% in the first half of September 30th, and operating profit is expected to grow by 45%.

In the first 5 months of fiscal year 2017-2018, the sales volume of the group increased by 10% compared to the same period last year, and its sales increased 12% in 4-8 months.

In addition, the French luxury giant Hermes in the first half of 2017 achieved operating income of 2 billion 710 million euros, net profit of 605 million euros, an increase of 11% compared to the same period, and the operating profit margin increased from 33.9% in the same period last year to 34.3%.

Betting young market

The revival of the luxury market is inextricably linked to the big brands' bets on the young market.

In recent years, many consumers, especially the millennial generation, have shifted their luxury shopping channels to online. In order to cater to consumers' consumption habits, luxury brands have begun to accelerate the layout of e-commerce channels.

Data show that most consumers are more accustomed to browsing and purchasing goods through mobile phone terminals. For the domestic market, luxury online sales account for 20% of the total domestic sales.

At the same time, the major luxury brands in order to seize the young market, timely launch a marketing strategy for young consumers.

For example, LVMH group's brand LV launched this year's LV x KOONS and LV Supreme joint series to cater to the needs of young consumers. At the same time, LVMH group also launched a luxury fashion business platform 24Sevres.com covering more than 150 brands, which was launched in China in July of this year.

Hermes group also launched this year's new perfume Twilly, with young consumers as the main audience.

In order to cater for the younger generation, Gucci also changed the brand designer again.

Insiders pointed out that the performance of Gucci is substantially warmer. In fact, it is mainly due to the replacement of designers. From the first performance show of Alessandro Michele, the newly appointed creative director, we can see that compared with the previous products, the trend of Gucci becoming younger and younger is becoming more and more evident.

There are still operational pressures.

With the continuous upsurge of luxury consumption upsurge, brands have begun to reenter the track of steady growth, but the brand competition of luxury goods industry is still fierce.

Zhou Ting, director of the co founders and President of the Institute of wealth and quality research, said that the reason why the luxury industry is getting warmer is mainly due to factors such as the innovation of luxury brand products, compensation consumption, narrowing of the global price gap, strict customs control, narrowing of investment channels and strict supervision of foreign exchange exports.

Although the market is beginning to pick up, the luxury industry still faces pressure from all sides.

Zhou Ting said that in terms of brand, consumers' desire to pay for brand premium has been reduced, and the cost performance of brands has been changed to product cost performance. The competition among brands has also changed from market competition and channel operation to product innovation and service quality competition. At the same time, homogenization products have been hard to attract consumers, and the pressure of innovation of all luxury brands has increased.

Secondly, luxury consumption has changed from brand personality to consumer personality, buying more because of brand personality and buying products and services that are different from other people because of the brand's suitability for their individuality, which has become the core demand of many luxury consumers, leading to the trend of multi polarity of brands, and the rapid rise of high-end niche designers and the impact on the relative position of traditional luxury brands.

In addition, the loss of the core consumer and the edge consumers are difficult to support the follow-up growth, the brand will face the risk of falling.

More interesting reports, please pay attention to the world clothing shoes and hats net.