Gucci, The World'S Top Luxury Goods, Has Soared.

Top luxury goods in the world

Performance has skyrocketed, but perhaps they are more careful about how to act.

According to the world clothing shoes and hats net, in February 12th, the three largest in the world.

Kering, one of the giants, released its 2018 full year report.

Data show that last year, Kai Yun Group sales grew 29.4% to 13 billion 665 million euros, operating profit rose 46.6% to 3 billion 944 million euros, faster than its rival LVMH group.

Among them, the core of Kai Yun group

Gucci (GUCCI) recorded sales of 8 billion 285 million euros last year, an increase of 36.9% over the same period last year, and operating profit rose 54.2% to 3 billion 275 million euros, accounting for 63% and 78% of the sales and operating profits of the luxury sector of the parent company, respectively.

The report also noted that Gucci, the group's core brand, has led growth for the first time in 12 consecutive quarters and has entered the 8 billion euro club for the first time.

It is worth mentioning that its rival French luxury giant, Louis Weedon and Dior and other well-known brands, LVMH group, reported that sales increased 10% in 2018 to 46 billion 800 million euros ($53 billion 500 million), a record high, and announced a 20% increase in dividends.

LVMH group's LV sales volume is 10 billion euros, and Kai Yun group has always wanted to Gucci rival rival LVMH group's core brand LV, and many times declared war.

2 billion euro gap, it is easy to see that Gucci will challenge LV again.

Song Qinghui, chief economist of Ching Hui think tank, told time finance that Kai Yun group and LVMH group were not an individual level.

The LVMH group is relatively balanced, and its core brands such as LV and Dior have a strong growth. While other brands of Kai Yun group are relatively weak, Gucci has become the main source of revenue. Gucci's performance has a direct impact on the performance of Kai Yun group. It is unlikely that a Gucci will be rebuilt for a short time.

Racial discrimination

Gucci's performance has been advancing by leaps and bounds, but the industry is not optimistic. According to Bloomberg analysts, this year's sales of luxury goods giants, which have been growing for more than 20% quarters in 7 consecutive quarters, have dropped by 4.1%. This is the only luxury group that Peng Bo believes is going to fall this year, but earnings per share will grow by 52.3%.

In fact, as early as last year, people in the industry questioned whether Gucci could lead the open cloud group to continue to lead the way. Whether consumers would be tired of the highly consistent style of Gucci will still be the sword of Damour, who is hanging on the brand name.

Gucci CEO Marco Bizzarri said in a video to employees last year that the slowdown in brand revenue after explosive growth is normal. It is impossible to maintain a 50% to 60% increase in turnover every month.

While the performance is slowing down, Gucci has also been in trouble recently. First, there is a tax crisis and then a racism.

In February 11, 2019, following the Italy brand D&G incident, Gucci fell into racial discrimination.

A woman's sweater product is alleged to be racially discriminatory. At present, the product of $890 has been removed from the website, and Gucci has issued an apology.

According to China net, Gucci's 2018 autumn and winter sweater is a lapel design. The collar is pulled up to show the wearer's mouth, surrounded by an exaggerated red lip shape. This detail is widely condemned in social media: Black face.

In an apology, Gucci said it was "deeply apologetic" about the offense caused by the product.

The brand agrees that diversity is the basic value, should be fully supported and respected, and put this value in the most important position of any brand decision, and this incident has taught the whole team a profound lesson.

In addition, Kai Yun group was caught in a tax storm in 2017.

In January 25, 2019, the Italy tax authorities charged LGI, a Swiss subsidiary of Kai Yun group, for its commercial activities in Italy. It should have paid business taxes to Italy. But Kai Yun group has been paying tax to the Swiss tax department at a lower tax rate, with an estimated tax of about 1 billion 400 million euros.

Gucci is the main target of the tax investigation.

In this regard, Kai Yun group said in its earnings report that it is confident of the ongoing litigation and will continue to cooperate fully with the tax authorities of Italy in order to safeguard its due rights.

Analysts at the first bank of Germany believe that apart from paying taxes, Kai Yun group also needs to pay extra penalty.

However, he believed that because the group had previously indicated that it would be liable, perhaps the fine might not be as high as expected.

Citigroup analysts believe that in the face of this survey, Kai Yun group need to pay 1 billion 300 million to 2 billion euros to reach a settlement with the Italy government.

War LV

According to fashion network monitoring, Gucci's average search index in the past 12 months in the world is much higher than that of LVMH core brand Louis Vuitton, and it was also named as the most popular luxury brand in 2018 with Chanel.

Gucci's brand value increased the most in the 2018 global best brands list released by consulting firm Interband, which increased by 30% to $12 billion 900 million compared with 2017.

The growth momentum of Gucci's ceaseless growth and the increasingly strong trend of BALENCIAGA make LVMH group feel an unprecedented "provocation".

According to fashion headlines, in early 2018, Fran ois-Henri Pinault, chief executive of Kai Yun group, put it to "eliminate" Louis Vuitton, and Marco Bizzarri also said in an interview that it would soon realize the goal of Gucci's annual sales of $10 billion.

In June last year, Gucci suddenly announced its show in Paris, which was held on the same day with LVMH's Dior, and directly fired the war into the base area of LVMH.

LVMH group, a luxury industry giant, will not let any competitors wantonly provoke.

LVMH boss Bernard Arnault has been insinuate in foreign media interviews and has been imitating the competition in the past ten years, and believes that they will not succeed.

LVMH group's actions in recent years are frequent. First, a creative director shuffled the cards. The controversial Street trend opinion leader and Off-White founder Virgil Abloh were invited to deploy the Kim Jones, which is good at giving brand new vitality, to Dior men's clothing. After that, she gave full support to the innovative initiatives of Celine Hedi, the new creative director of the Celine, and seemed to use these three trump cards to return to the open cloud group.

In the Chinese market, Gucci is trying every means to please young consumers.

In order to compete with Gucci, LVMH can only compete more fiercely and vigorously in the Chinese market.

In October 31, 2018, luxury brand LVMH officially announced the "90's" star Wu Yifan as the brand spokesperson through official micro-blog account.

The LVMH appointed Wu Yifan as the global spokesperson, and is also seen as an important step in brand younger and broadening the Chinese market.

According to statistics, the Chinese market accounts for 32% of the total sales of luxury goods in the world, and has long been a "hot spot" for luxury brands.

In China, luxury consumption is showing a younger trend.

As we all know, the "carrying capacity" is becoming one of the important criteria for measuring the commercial value of stars.

In the Chinese market, the purchasing power of young consumers is strong, but the brand loyalty is becoming lower and lower, which makes the competition between brands become more intense.

Luxury brands now spend almost 80% of their energy on young consumers.

Song Qinghui said that with the new consumption trend of China's luxury market, the popularity of shoppers and the popularization of Internet consumption, it is inevitable for luxury brands to become younger and electric providers.

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