Who Will Be The Next "Gucci"?

The persistent downturn in the global economy has brought the global luxury market to the worst performance after the financial crisis.

According to the world clothing shoes and hats net, since 2015, individuals

The annual compound growth rate of the industry dropped to -1%, less than half (49%) of the brand still maintained growth momentum.

Previously, Bain consulting released a global luxury market research report, which predicts that the global luxury market will enter a stagnation period, or has reached the lowest level since the global recession.

Today, workplace social networking platform LinkedIn (leading British) and management consulting firm Bain jointly released the China business leadership insight report. The report shows that Internet, public relations and luxury goods are the three biggest job hopping industries.

Judging from this result, luxury goods last year were really tough.

Polarization is serious.

Bain consulting believes that the global personal luxury market has entered the "new normal" stage of low growth since 2015. The current "bonus period" of the industry has ended, and the quality of brand operation has been polarized.

In recent years, sales of luxury goods are not optimistic.

Most brands still have poor performance, and the performance of Prada, Prada and BottegaVeneta has continued to decline.

According to earlier

Released 2015 earnings, data show that last year, Chanel group's revenue reached 6 billion 240 million U.S. dollars, down 17% over the same period last year, profits 1 billion 600 million dollars, down 23% compared with the same period last year, the whole industry "bottom".

Although Chanel has the bottom, it does not mean that other luxury goods companies are better off.

In the first half of 2016, Dior profits fell 30.2%, Prada net profit fell 25%, Burberry turnover fell 3%, and LVMH group's leather goods revenue and profits decreased by 1% and 2% respectively.

No matter what others do,

Last year's performance was brilliant.

According to the latest data released by Luxury Daily, Gucci defeated luxury brands such as Chanel and Burberry in one fell swoop, becoming the most successful luxury brand of luxury marketing in 2016. The brand has been successfully pformed under the guidance of creative director Alessandro Michele and Gucci CEO Marco Bizzarri.

According to LuxuryDaily, the annual luxury marketing award is mainly based on the marketing strategy, creativity, strategy implementation and final effect of luxury brands.

According to the world clothing shoes and hats net, Gucci is pressing the luxury brands such as Prada and LV to become the most popular handbag brand in China.

RBC Capital last month surveyed 441 Chinese women earning more than 450 thousand yuan per year, and over the past 12 months willing to purchase more than 5000 yuan for Chinese handbags. It found that about 50% loved to buy Gucci handbags, another 49% loved Chanel, 46% loved Prada, fourth and five were LV and Hermes respectively.

At present, China's consumer market accounts for 30% of the global luxury market.

The road to change of luxury brands

1, luxury goods begin to "touch the net".

Luxury manufacturers began to lower the "noble head" and carefully "touch the net".

In order to reverse the trend of decline, luxury brands embracing the electricity supplier is an inevitable trend. At present, luxury brand test providers mainly have self built electronic business platform, such as Tmall electric giant, micro shop or luxury vertical business cooperation.

According to the survey of 3726 high net worth consumers, China's luxury core consumers who spend more than 10 million of their assets spend 1.7 times on mobile App than ordinary people, mainly for business and social networking, but shopping and lifestyle learning is gradually becoming a trend.

High net worth consumers have higher demand for Internet shopping or booking shopping services because of the high cost of time, because they do not have high net worth consumers who can trust and experience luxury shopping Internet applications.

The wealth and Quality Research Institute's 2016 China luxury report says that luxury brands will embrace the Internet in 2017. The third party Internet platform will become the main body of luxury Internet, and luxury official website will become a display because of traffic restrictions.

At the same time, luxury goods group will gradually strengthen the direct management of brands and global markets. Regional and national management centers will be pformed into business centers. Younger managers with digital thinking will enter the management level of luxury goods groups and directly promote the digitalization process of luxury brands.

2, add fresh elements

Thanks to product reform and successful marketing, 2016 was a bumper harvest year for Gucci, driving the third quarter results of the parent company's cloud group to a strong performance, with double-digit income growth of 10.5%.

In addition to creative director Alessandro Michele's innovative design of clothing and accessories, Gucci's re marketing of romantic feelings is also a key factor in the brand's support for many consumers.

According to the world clothing and shoe net, Gucci is no longer the brand of handbag that only relies on the shield badge. It now has a poetic romance, new literature, charming philosophy, and inspiration in history and theology. Alessandro Michele adds interest to its products, especially its various animal designs that have attracted a large number of young consumers.

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3, set up shop as a "breakthrough" opportunity

The luxury market is still in a predicament, and has repeatedly been trapped in the "closed shop".

In the first half of 2016, the statistics of the major luxury brands in mainland China were incomplete. In the first half of this year, nearly six major brands such as Gucci and Burberry (Bo Baili) were closed, and last year and this year, LV closed nearly 6 stores.

In contrast, luxury stores are still opening stores.

According to the analysis of the industry, when the luxury brand store closes a lot, it is the opportunity for the store to break through.

As the largest department store in the Greater China area, it combines the fashion, design, art and music perfectly with the innovative store environment, and promotes personalized service of customer experience. Under the condition of general luxury goods, the market situation is slightly better.

Insiders pointed out that the collection shop sent buyers to purchase luxury goods on their own, which could better consider the needs of the local market, control the rhythm of new products on their own, and some new goods might be earlier than the stores.

It can also provide customized services for guests and purchase according to the requirements of guests.

This is more popular than brand stores.

Who will be the next "Gucci"?

Following Gucci, Prada will be the next luxury brand of recovery.

Macquarie today published research reports that in the next three to five years, Prada group will have a great chance of restoring profitability, while group CEOPatrizio Bertelli is also carrying out in-depth reform of the brand to improve operational efficiency.

Prada group CEO Patrizio Bertelli last December received an exclusive interview with the US fashion media WWD, saying that there are signs of improvement in the Chinese market and other markets are also recovering.

In addition, Prada's products are mainly exported to Asia Pacific, Europe, America, Japan and the Middle East. The expected depreciation of the euro will help stimulate sales of products, and its competitor LVMH group's third quarter revenue increased by 6% over the same period.

Prada may be closer to China than any European luxury brand, and its Prada group, which owns MiuMiu, Church's and CarShoe, was listed in Hongkong in 2011. It has led to a sluggish performance of its brand Prada after over opening. Earlier analysts pointed out that the family management structure of the group was outdated and the management contradictions were more prominent. However, the group is now making bold changes.

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