The Negative Impact Of Over Popularity On Luxury Brands

< p > the latest performance of Kai Yun shows that the group's revenue declined by 1.5% to 2 billion 523 million euros in the third quarter ended September 30, 2013.

Among them, < a href= "//www.sjfzxm.com/news/index_c.asp" > luxury goods < /a > sector grew by only 1.5% to 1 billion 617 million euros, while Gucci's sales fell by 5.4%, the worst performance since the financial crisis.

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Less than P, the performance of Kai Yun group in 2012 has shown signs of decline in the past few years. In the first half of this year, the group claimed that it would stop Gucci's expansion in China.

According to foreign media reports, recently, Jean-Marc Duplaix, chief financial officer of Kai Yun group, admitted for the first time that Gucci's sales in China fell.

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< p > results show that in Asia Pacific markets other than Japan, Gucci's overall sales fell by 2%, which accounts for 36% of Gucci's global revenue.

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The same goes for P, another luxury LV.

The latest results released by MOET & CHANDON Hennessy LV (LVMH) show that excluding the impact of exchange rate fluctuations, the natural growth rate of the third quarter continued to slow down, only 2%, lower than the second quarter's 7% and the first quarter's 3%, and LV, and other luxury brands in the core fashion leather Department suffered 3.8% sales decline.

According to foreign analysts' estimate, LV has only achieved 1%~2% growth.

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Compared to the P, the two luxury brands achieved over 10% sales growth between 2010 and early 2012.

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< p > "Gucci's performance is due to the negative performance of the Chinese consumer environment. Meanwhile, the brand is also relocating to a more high-end market. This leads to a reduction in the sales of low price, entry level" a target= "_blank" href= "//www.sjfzxm.com/" leather "/a" products.

Duplaix said so at a conference call.

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Antonie, a luxury analyst at P > HBS, believes that their performance weakness is not attributable to the industry as a whole. Their downward trend in sales reflects more consumer preferences for luxury goods.

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< p > realizing the negative effects brought by over popularity, Gucci and LV are now trying to refocus on high-end products, producing more LOGO products that are not obvious and more expensive.

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"P > there is still some progress on brand repositioning, and the change has not been completed."

Duplaix told analysts at a conference call.

He also pointed out that no trademark leather bags now occupy 55% of the sales of the "a href=" //www.sjfzxm.com/news/index_s.asp "brand" /a "leather goods, compared to 35% last year, and the selling price of these products is about 10% higher.

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