Sandro Speeds Up Brand Expansion In Greater China

Sandro accelerated the brand expansion in Greater China. Sandro CEO Jean-Philippe Hecquet said that the development of the brand in mainland China has been very successful, and the performance of all the stores has reached or even exceeded expectations. Therefore, it will continue to invest in the local market in the future, focusing on the expansion of the first tier cities.

In February of this year, Sandro It has opened two branches in Beijing Xinguang world and Chengdu Ocean Pacific, and increased the total number of Chinese stores to 17, among which Chengdu stores are even the largest Sandro stores in Asia. brand This year plans to add 10 stores in China, which does not include a large flagship store located in Tongluowan, Hongkong, which is expected to open in September.

Since the US private equity giant KKR & CO LP (NYSE:KKR) acquired Sandro parent company in 2013, it also has three big French luxury products, Maje and Claudie Pierlot. SMCP After the majority ownership of the group, the sales of Sandro international market increased rapidly from 30% at that time to 41.5% last year. In addition to the Greater China market, Southeast Asia, Australia, South Korea and the Middle East are also potential target markets.

Singapore's second stores will enter Marina Bay Sands at the end of this year. As for Australia, Sandro, who has already set foot in Sydney and Melbourne, plans to set up 10 stores in the market by mid 2016.

SMCP Group 2014 total revenue broke through 500 million euros, reaching 508 million 600 thousand euros, an increase of 20.5% over the 422 million 100 thousand euro in fiscal 2013, and a growth rate of over 20% in the fifth consecutive years. In terms of products, Sandro currently sells men's and women's wear garments series, and Jean-Philippe Hecquet reveals that the brand will enter the field of shoes and handbags in the spring and summer of 2016.

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Cartire will adjust its price in the European market starting in May 1st to offset the impact of the euro's fall. Among them, jewellery products rose by 9%, and watches and watches products increased by 7%, which is the second time that Cartire has increased its price in the year. Hermes plans to raise prices in Europe from 15 this month. Analysts believe that the price adjustment of the two brands suggests that more brands will join the camp in Europe, and the consumption of luxury goods has not yet recovered. The euro exchange rate will further affect the future performance of the major brands.

Reporters yesterday called the official customer service of Cartire China area, customer service personnel said that no news about the price adjustment has been received. Zhou Ting, President of the luxury goods field and President of the Institute of wealth quality, believes that after the Chanel price adjustment event, the global price integration is the inevitable trend of the major brands. The brand price adjustment strategy needs to be analyzed in combination with different market environments, but the exchange rate may still be the direct cause of the brand's rise in Europe.

Europe is the most concentrated market of luxury brands, and also the prosperous place of Chinese consumers and buyers. As the euro continues to decline, consumer spending in Europe is equivalent to a discount. If the unit price is 1200 euro, it will cost more than 1 yuan a year ago, but only 8200 yuan in the near future, saving nearly 2000 yuan. As a result, the number of shoppers in Europe has increased significantly, and the profit margins of luxury brands have declined in Europe.