Greater China Has Become A Major Disaster For Many Luxury Brands.

According to the quarterly reports released by several international luxury goods groups, the declining trend of international performance such as Prada (Prada), Gucci (Gucci) and Louis Weedon (LouisVuitton) has not been effectively suppressed. What is worrying is that the Greater China region has become a major disaster area for many luxury brands.

"A bad spancript." When Prada group announced its quarterly report in December 5th, it showed that group net income fell by 27.6% compared with the same period in 2013. On Monday, December 8th, Prada's share price plummeted 9%.

Prada group is one of the leading companies in the global luxury industry. Its brands include Prada, MiuMiu, Church 's and CarShoe. Its main business includes the design, production and distribution of valuable handbags, leather goods, footwear, clothing and accessories, and also operates glasses and perfume according to the licensing agreement.

The quarterly earnings report shows that Prada Group sales have shrunk, and profit margins have also decreased significantly, and its performance has deteriorated.

In the three months ended October 31, 2014, Prada group's revenue fell by 5.6% over the same three month period last year. Despite this decline, the group's MiuMiu and shoe brand Church 's achieved sales growth of 4.8% and 4.2% respectively, but did not prevent the overall downturn. Sales of leather goods from the group's main source of income fell by 9.1%, or 3.9% in the first half.

According to the earnings report, the 4.3% reduction in retail sales is due to the slowdown in overall market demand in Hongkong and Macao, which is described by Prada group as "particularly serious". The total retail sales in the Greater China region were 566 million 200 thousand euros, down 4.1%.

And the only important wholesale market in the Asia Pacific region is Korea. Duty free business The number of independent customer businesses has increased by two digits, which is "mainly benefited from China's tourism consumption".

" International economic environment Grim, the luxury market is also adjusting its magnitude and nature, I Naomiaro. " Prada said in its earnings report.

In recent years, the international well-known luxury group's life is generally not good.

Famous international Luxury goods Group Open Cloud group's brand Gucci, in the third quarter sales exceeded expected to decline 1.6%; Burberry profit in the first half of this year also showed a year-on-year decline of 12.4%; SalvatoreFerragamo three quarter profit fell 4.6%; Cartire owned watches, watches and other brands of the brand group, in the first half of the year, operating profit fell 4%.

Among these international brands, the LVMH group's performance in the third quarter has seen a rare 5% growth, but its main leather and garment business has not been much improved, and has been supported by perfume, watches and jewelry.

In the earnings reports of many luxury brands, bad news about the sales of "Greater China" is frequent. Prior to that, the group has struggled in China in a downward trend and has yet to make any profit. Tod's group sells back 6% in China. The changes of China's economic environment and social changes in Hongkong area are regarded as the main culprits of the major international luxury companies in China.

In the face of setbacks in many companies in Greater China, people in the industry turned their thinking to changes in consumer groups.

Among many international luxury brands, Hermes has seen rare achievements in the Chinese market. In the first half of the year, the company reported a 7.9% increase in revenue, a 12% rise in fixed exchange rates and a 8.1% year-on-year net profit. Driven by the Chinese market, the Asia Pacific region grew by 17.2% over the same period last year, while the US market grew by only 13% during the same period.