Home > News > Content
Luxury Performance To Fall Across The LV Will Sell Children
Aug 17, 2016

Luxury has always been a leader, reach, and their product is a lot of people, in the eyes of all luxury goods has been very ill recently is a great crisis, fell because of the industry downturn performance almost LV sell "children", is this how it goes?

On July 27, the world's largest luxury goods group LVMH released its half year results, decline in revenues and operating profits double, and sold under the two brands. This is not the case, after over 3 years, luxury brands still failed to hold down the bottom line.

Thus, major brand substitution substitution, reduction in salary, but a better future. After all, as stories have a tradition of luxury brands, who want to make this situation last long.

Declining performance

An article entitled "2016 national casualty lists luxury brands" article had stirred the boutiques, the paper is mainly based on the closing number of luxury brands in China. According to the RET core commercial real estate research center, China, Italy and Germany, 2015 total LV, 11 luxury brands such as Gucci closed 34, only 14 new stores.

Unfortunately, this not only happens in China. According to BNP Paribas of France and United States analysis (RE Analytics) Agency data shows that 2016 global luxury brand to closing in the first quarter increased eight mainstream luxury brands the world within just 3 months amount to close stores close to 40.

Reasons for closing, essentially leases expire and policy adjustments. "For these reasons on the face of it sounding, but also to understand, but in the end because money well earned. "A person who once worked for Paula Butterfly Chinese Wang Haibo (not his real name) to observe new financial reporter says.

Indeed, the former luxury brand shop can make money day. However, starting from 2013, luxury industry began to slump, "but at least 10 years before that, luxury brands have accumulated in thick background, these annual increases, but to slow down. "Analysis of Wang Hai.

This year, luxury brands performance almost fell.

Dior Group zero growth in the first quarter, Burberry Group fell by 5%, Ferragamo (Salvatore Ferragamo SpA) decreased by 1.8%,Hugo Boss 3% drop in Group sales, net profit plunged by 49%. The worst the Prada, who 10 years ago because of the Devil Wears Prada and burst fire brand as early as last year, net profits were down 27% into the biggest crisis in nearly 5 years.

Largest luxury group LVMH leather fashion business income or just zero growth in the first quarter, semi-annual report released on July 27 show, income-0.8%, operating profit in this sector fell in the first half 1.9%. Want to know leather 35.5% of LVMH fashion-sector income and operating profit ratio is as high as 55%, so falling profits in the sector hit the group.