Luxury Stores Are Sluggish In China, Brand Stores Are Being Renovated And Developed.

　　 Sudden stop at Hua Kuozhang speed

LVHM group recently released the third quarter report this year. Its performance was unsatisfactory. The company only reported the first nine months of sales, totaling 20 billion 700 million euros, an increase of 4% over the same period (excluding the exchange rate fluctuation and other factors). The sales volume of the third quarter was 7 billion 20 million euros, although the growth rate was still 1.7%, but it was lower than the market expectation. Industry analysts pointed out that even if the exchange rate changes and other factors, the third quarter year-on-year growth rate is only 2%, lower than the second quarter of 7%, also lower than the first quarter of 3%.

Including perfume, cosmetics, watches, jewelry, belts, neckties and shoes The global luxury market sales of other categories will slow down from 5% in 2012 to 4%-5% in 2013. The main reason for this is China, according to a recent study by top luxury experts in the world.

The Chinese market, which accounts for 1/3 of global luxury goods consumption, has been the main contributor to the global luxury industry sales in recent years. All kinds of conformity psychology, comparison psychology and show off mentality have formed an upstart effect as a whole. Huge economic profits have made many international luxury brands increase the pace of expansion in China. However, this year, the wind has reversed for the first time. After LV made it clear that it would not continue to open stores in the two or three tier cities, GuZi also announced a slowdown in its domestic development plan.

The reason for this is not only the slowdown in the national economy, but since the central government promulgated the "eight provisions" and "six prohibitions" at the end of last year, a series of "combination boxing", which inhibited public spending and opposed extravagance and waste, continued to exert power. Moreover, due to price differential and high tax rate, the scale of luxury goods purchased overseas by domestic tourists is increasing. Against this background, more and more luxury brands say they will slow down in emerging markets to cope with the slowdown in the global luxury market.

　　 Heavy gold to upgrade stores to drive profits

　　 Luxury industry Most of the growth in sales comes from the growth of retail space and the rise in prices. After slowing down the pace of expansion of stores, Ferragamo will choose to expand the size of its original stores instead of opening new ones in the future. As a luxury brand that pays attention to brand image and reputation, it is hoping to promote the overall profitability of the brand through the design of more high-end stores.

Slower growth in new stores does not mean a reduction in costs. According to Ferragamo's chief executive, Michele Norsa, the cost of rebuilding a new store in the old city is much higher than the cost of opening a new store. Ferragamo adds a lot of money to the old store renovation plan. Its flagship store in Fifth Avenue, New York, is the first target of the plan to be completed last year.

Similarly, adopting the strategy of "replacing the old with the new face" and the Chinese stores, readjusting the development plan in the Chinese market and reducing the number of shops opened in remote areas, PPR, LVMH, Compagnie Financiere Richemont and other large luxury conglomerates agreed that they will focus on upgrading the supply of existing stores and upgrading their stores and services. Jean-Francois Palus, director of operations of PPR group, said: "next we basically will be fixed in the same city to change the lot of the shops."

Shanghai Heng lung square completed the upgrade as early as last year.

　　 Hermes The luxury brand flagship store such as LV, Bvlgari and D&G appeared after renovation. The facade curtain wall was very bright.

"Light facade curtain wall, spent 45 million yuan." Li Min, the regional manager of the Italy senior men's wear brand, China, said in 2004 that the flagship store of CITIC Pacific opened last year is fortieth stores in China, and the three floor covers 250 square meters. MontBlanc has expanded its store in CITIC Pacific from a 30 square meter shop to the 610 largest Square flagship store in the world today.