Why Is Jimmy Choo Optimistic About The Chinese Market?

The depreciation of the renminbi, the slowdown in economic growth and the strengthening of anti-corruption efforts have led to unprecedented complexity in China's luxury goods industry.

However, Pierre Denis, chief executive of Jimmy Choo, is still confident when it comes to talking about this emerging market.

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This is actually not difficult to understand.

Jimmy Choo's 2014 fiscal year report released in March shows that the company's profit has reached 50 million 200 thousand pounds (about 490 million yuan), an increase of 7.2% over the same period last year.

In a telephone interview with the women's wear daily, CEO said that the sales growth of the brand in the past year mainly came from the retail market, including 9 new stores, China accounted for more than half.

"If we study the Chinese luxury market carefully, we will find that men who used to dominate all of them are male, but almost half of the products are targeted at female consumers."

Denis said: "and there is still much room for development. From a global perspective, 2/3 of luxury goods" serve women ".

American consumers are generally around 45 years old, but the average age in China is 15 years old, between 25-35 years old. This is also an important reason why we want to enter the digital field.

Bain released in January this year, China in 2014.

In market research, Jimmy Choo is ranked fifth among attractive new luxury brands (after Balenciaga, Michael Kors, Kate Spade, Alexander McQueen), with a reference rate of 22%.

The report also quoted a luxury consumer's reply: "after watching the Korean dramas, I really wanted a pair of Jimmy Choo, but this shoe disappeared in a few days."

Having a pair of Abel Pump will definitely make you a fashion fad. "

Seeing here, wit, like you, will probably remember the 2013 Korean drama "you from the stars".

The classic "Abel" of the heroine pedal has been sold out in Korea, and has also been hot after coming to the Chinese market, which has led to the sales and attention of the whole brand.

At present, the brand has 18 stores in 11 main cities of China.

In Denis's view, in view of China's 50% of GDP from the top 20 cities, Jimmy Choo is still "promising" here.

CEO gives three reasons for looking ahead to the Chinese market.

The CEO believes that it is not enough to look at the local market to calculate the Chinese luxury market.

Due to the low penetration of Jimmy Choo in China and the price difference between tariffs and domestic and foreign prices, Chinese tourists have become the second largest tourism customer groups.

Up to now, the United States is still the largest brand market, but what is interesting is that 15% of my sales are contributed by Chinese tourists.

Almost all brands have observed this phenomenon, and reflected in the recent earnings report.

From LVMH, Kai Yun to Coach, luxury big players' revenues in Europe and Japan are rising, and the biggest contributors behind them are Chinese tourists.

According to the report of "the most active city for shopping mall development" released last year by CB Richard Ellis, the shopping center construction area in Chengdu is crowning the world. Even in 2014, it was surpassed by Wuhan, and its shopping center was still 981 thousand square meters, ranking second in the world.

Denis observed that although China's shopping malls were becoming saturated, the volume growth began to slow down, but the good news is that most of the existing shopping malls began to consider the high-end pformation.

But as of now, Jimmy Choo's attempt in China is merely to enhance its brand image.

For Denis, there are two barriers to online sales, one is the immature operation level, for example, how to pay; the two is the hard nut faced by luxury brands in the Chinese market: counterfeit products.