Bags Hold Up Half Of The Sky Gucci, February Handbag Orders Sharply Reduced By 50%

Beijing time on March 12th, according to Reuters data revealed that, by the sharp decline in consumer demand in China, Gucci, Prada and SalvatoreFerragamo and other luxury brands orders decreased significantly. Among them, suppliers of Kai Yun group revealed that Gucci handbag orders in February were reduced to 450 from 880 to 1000 in January, and no orders were available in March. LVMH's suppliers said the order for Louis Vuitton handbags was reduced by 30%.

Up to now, the brands have not responded to the above news.

Data show that with the sharp decline in China's market demand, many luxury brands began to cut orders in late January. Claudio Marenzi, a retail retailer, said that foreign buyers of textiles in Italy began cancelling orders in late February, and sales of some retail outlets had halved.

It is noteworthy that Gucci, Louis Vuitton and handbag sales, which were revealed by Italy suppliers' real names, have made brilliant achievements in past brand earnings reports. Take Gucci as an example, since Alessandro Michele became the brand creative director, it pushed Gucci Dionysus "Dionysus bag" hot fashion circle, and then on the basis of the new package Ophidia, Ottilia and other new series of bags. At the same time, Alessandro Michele also extends the price band. It is reported that Gucci originally positioned 1500 to 3000 euros in handbag products range, and later sold higher priced Gucci Totem handbags.

According to the data of The RealReal, a second-hand luxury electric business platform in the US, only on this platform, influenced by the trend of logo prominent logo, many brand handbags consignment prices rebounded, and the prices of Dior Saddle and Gucci Web two packages rose by 89% and 51% respectively.

Louis Vuitton, who also works hard and returns in handbags, is the same way as Gucci. According to the latest fiscal year 2019 data released by LVMH group, sales of fashion and leather goods increased by 20% to 22 billion 237 million euros compared with the same period last year, and operating profit increased 24% to 7 billion 344 million euros compared with the same period. The flagship brand Louis Vuitton (LV) has performed well in all categories and regional businesses, and the classic product line and new products have been strongly promoting growth.

It is reported that since the autumn and winter of 2014 in Paris fashion week, LouisVuitton launched Petite Malle handbag as the popular bag of the season, and then developed into the core package of Louis Vuitton, which is comparable to the classic series of brand Speedy. Since then, Louis Vuitton has also launched many new bags between 1500 to 2000 euros (about 11690 to 15588 yuan) through extending the price band.

At the same time, by providing different colors and materials, or affixed with applique or embroidery decoration, Louis Vuitton has expanded the selectable range of the classic bag. Data show that from the second half of 2016 to the first half of 2017, LouisVuitton launched about 2 to 4 new packages per quarter.

"The impact of the luxury handbags brought about by the epidemic is predictable. After all, consumers who do not go out at home, obviously lack the use of handbags, and the consumption contraction caused by the epidemic is also a little bit spreading in the field of luxury consumption," a luxury retailer said.

It is worth noting that following the consumption growth of the most potential Chinese market, the world's major luxury cities such as Italy and France are becoming more and more serious. In March 10th, Italy, a confirmed patient, had decided to block the whole territory, and asked the public not to go out except for the necessary work and other emergency situations. Among them, many luxury brands such as Gucci, Fendi and Celine had been suspended in Italy stores. There are also reports that French luxury brand stores are starting to shorten their business hours.