The First Quarterly Report Of Luxury Goods: Industry Recovery And Polarization, Chinese Consumers Are Still The Main Drivers.

From the quarterly report of luxury goods, we can see that the recovery trend of the luxury goods industry is basically established, and the Chinese purchase is still the main driving engine, and the innovation force has become the mainstream company's performance watershed.

Recently, most annual reports or quarterly reports of luxury goods have been basically disclosed.

Whether from the macro level of the industry or the micro level of the company and product, the path of the global luxury market is recovering, not only in the performance data, but also in the industry innovation and change.

Most industry market participants believe that in the cold winter period from 2015 to 2016, the overall performance of the luxury goods industry in 2018 will gradually become warmer.

After analyzing the company and brand, we can see that although the overall performance of luxury goods is good, there are still a few unhappy families, and the fate of conservatives and innovatives is quite different.

The recovery trend of luxury industry is basically established.

In the first quarter of 2018, the overall performance of major luxury groups was positive.

The LVMH group is still the leader in terms of magnitude.

In the first quarter of 2018, group revenue reached 10 billion 900 million euros, an increase of 10% over the same period last year.

The group's analysis said that the growth in the first quarter was mainly driven by the rapid growth of its fashion and leather brand business.

During the period, the sales volume of the leather goods department of the group's core rose 25% to 4 billion 270 million euros, and organic revenue grew by 16%. In June last year, the Dior fashion department, which was purchased by 6 billion 500 million euros, made a great contribution to the growth of sales.

However, judging from the growth rate, Kai Yun group is "the latecomers". According to the first quarter financial results of Kai Yun group, group income continued to be strongly promoted by the core brand Gucci (thematic reading) in the three months ended March 31st, up 27.1% to 3 billion 107 million euros, up 36.5% from the sales growth.

Although the magnitude is still unattainable, the growth rate is higher than that of LVMH group.

In the three months ended March 31st, sales of Herm & amp; s group increased 11% to 1 billion 394 million euros compared with the same period last year. All businesses and all regions have recorded an increase, which is better than analysts' expectations.

Among them, sales of clothing and accessories Department of the brand increased by 17.1%, while jewelry and household business income increased by 23.1% compared to the same period last year, and the sales of perfume business rose 16.1%.

Due to the difference in the time of disclosure, Swiss luxury goods group has announced its annual growth as of March 31, 2018.

Data show that sales increased by 3.1% at real interest rates and 8% by fixed exchange rates.

Thanks to the rebound in sales of hard luxury goods such as jewellery, its sales grew by 10% in the first three quarters of last year.

Among them, retail channel sales rose by 13% to 5 billion 276 million euros compared with the same period last year, while wholesale channel sales increased by 6% to 3 billion 448 million euros.

Chinese buying is still the main driving engine.

Combined with the disclosure of major companies in 2017

Data, GF Securities development research center business retail group after calculating, and the global luxury market in accordance with consumer nationality and consumer area split, obtained specific country purchase data: according to nationality, the Chinese are the largest luxury consumer group, in 2017, bought 32% of the world's luxury goods.

By region, Europe and the Americas are still the largest consumption areas, accounting for 33% and 32% respectively in 2017. The consumption of luxury goods in the mainland of China accounts for only 8%.

Even so, China is still the main driver of the global luxury market. Many luxury groups reported in 2017 that China is the most robust region, and the growth rate has increased significantly over the past two years.

However, GF Securities also warned in the research report that the growth mode of luxury goods group is still relatively traditional, and is vulnerable to factors such as economic downturn and high housing prices, resulting in weak terminal demand.

In addition, in the past year, bottlenecks such as capital, technology and talent have hindered the integration of the whole industry and the whole channel, hindered the emergence of more innovation and cooperation, and also hindered the overall upward trend of industry pformation.

Coincidentally, UBS's wealth management also pointed out in the latest report that China's high-end luxury consumption will lead to an annual growth of around 10% in the next few years.

However, the overall performance of luxury goods is good, but there are still several unhappy families, and the fate of conservatives and innovatives is quite different.

For example, Burberry group has been in pition for a period of time, and sales fell by 1.2% to 2 billion 730 million in the 12 months ended March 31, 2018.

Recently, LVMH group's independent director and Belgium's richest Albert Frere have sold all 6.6% of Burberry's holdings, and Burberry has made drastic adjustments to buy its Italy leather goods supplier CF&P luxury leather goods business. The industry believes that this reveals that the brand is in a state of turbulence at present. However, adjustment is not necessarily a bad thing, especially when the new creative director Riccardo Tisci takes office, or will bring more opportunities for Burberry.

Innovation has become the mainstream company's performance watershed.

Institutional researchers believe that in the past few years, the rise of consumers in the new millennial era calls for the pformation of luxury brands towards creativity and youth.

Among them, the most prominent case is the Gucci brand's "explosive growth of performance".

In 2015, when the new design director Alessandro Michele took office, Gucci added a large number of graffiti, cartoon, flowers, animals, street style pop elements and other images in the single product design, and widely opened cooperation with the cutting-edge artists, becoming the recognized forerunner of "brand image reconstruction" in the field of luxury brand.

After this series of changes, Gucci's single product style has become more and more daring and fashionable, attracting a large number of young consumers. Besides the growth of business performance, the business reputation and the influence of the industry have also been greatly improved.

In contrast, two years in the field of innovation and integration of smaller brands, though benefit from

The overall growth trend of its performance decline is not so obvious now, but in 2018 and in the future, it will face greater market shrinkage and downward pressure on performance.

With focus

In the three months to March 31st, sales of leather Tod "s group" fell by 5.2% to 226 million 100 thousand euros, compared with 238 million 500 thousand euros in the same period last year.

The core brand Tod "s sales decreased by 2.8% to 119 million euros compared to the previous year. It has recorded a decline for the 9 consecutive quarter. Its sales of another brand Roger Vivier also ended its growth trend for the first time, and dropped 8.7% to 37 million 800 thousand euros for the first time.

At present, Tod "s group is also seeking pformation.

The group's chief executive, Diego Della Valle, said in the report that the group is thinking about how to attract more young consumers with continuous creativity, while further breaking the channel barriers under the online and offline channels to pform the whole channel.

To this end, the group is constantly increasing investment in marketing and digital teams, so as to better grasp the new growth opportunities of luxury brands in the era of digital business.

However, in the view of Yang Dayun, President of the UTA international brand Cci Capital Ltd, in addition to constantly seeking innovation in the product creative field, luxury brands also need to rethink the brand connotation in the new era of consumption.

"Nowadays, consumers have more reasons to choose products, no matter how well the marketing strategy is done, at any time, only a brand with a soul and deeper connotation can survive better.

Both innovatives and conservatives need rethinking and meticulous layout at this point.