The red and purple Gucci has to raise prices and it wants to produce shoes and bags.
There is no doubt that "Made in Gucci" is the biggest winner!
Gucci's strong forward has never stopped, and in the new quarter, it is the biggest winner in the luxury industry.
According to "Women's Daily" quoted Kaiyun Group's latest quarterly financial report, in the three months ended September 30, although the euro's strength has brought a lot of resistance to the development of various brands, the group still easily surpassed the camp. As expected, overall sales rose 23.2% to 3.92 billion euros, and it is expected that by the end of this year, the group will be ahead of the luxury industry competitors.
The biggest players who have brought such achievements are undoubtedly the three ace of the group - Gucci, Saint Laurent and Balenciaga, which are the most significant gains of Gucci, and are the well-deserved cash cows in the group.
Data shows that Gucci's organic sales in the third quarter soared 49.4%, easily surpassing the expected 30% increase, and once again broke the 39.3% sales growth in the previous quarter. During the period, all categories recorded double-digit growth.
Jean-Marc Duplaix, chief financial officer of Kaiyun Group, told the Women's Daily that although the transcript was satisfactory, currency fluctuations still reduced revenue by 90 million euros, and this state will continue into the fourth quarter. What is rare is that in the context of the strong euro, the demand for shopping from the European tourism industry has rebounded, and the purchases of Asian consumers have recorded double-digit growth. “In order to compensate for the price difference caused by the currency exchange rate, Gucci’s price will increase by 5% from the spring and summer of 2018. At the same time, other brands have begun to adjust prices,†Duplaix said.
Since Alessandro Michele took over as the creative director of Gucci, the transformation of the brand is the most typical case in the industry. While successfully grabbing more and more market share, the market is increasingly demanding the brand.
Duplaix said that the first task of Kaiyun Group is to adjust Gucci's production cycle so that it can respond to customer needs more quickly. It is reported that in order to achieve more efficient production rate, shorten delivery time, and promote the development of the brand to a more vertically integrated organization, the company is planning to set up a design production studio in the early 2018 - Gucci Art Lab, the main production leather Products and footwear, as well as a professional team, to feedback consumer trends, purchase sustainable fabrics, and most importantly, to maintain the localization of the Gucci supply chain, in order to speed up the release of the new series.
The 350,000-square-foot studio is one of Gucci's plans to further produce production.
"We never worry that Gucci will maintain the current market share growth rate." Duplaix said in a conference call with investors, in this regard, Kaiyun Group as a backing of the brand, will provide sufficient financial support to Gucci.
For the control of the production process and delivery time, it is also to promote
Brand retail direct sales. In the era when luxury brands are embarking on e-commerce, Gucci has also been reorganizing its physical store network to better match the company's "new store concept."
The so-called "new store concept" is similar to the popular omni-channel sales. Gucci hopes to transform the physical retail space into an experimental and digitally operated store that can serve consumers across channels. So far, 25% of all 550 direct-operated stores in the brand have undergone model innovation, and another 30 will be updated by the end of this year.
Gucci has placed direct store development in the first place. The results of this strategy have also been reflected in the data. According to the company's financial report, during the third quarter, sales of direct stores increased by 51% year-on-year to 1.28 billion euros. 83% of the brand's total sales, online channel Gucci is also not behind. In July this year, Gucci opened the online shopping service of China's official website. Although Kaiyun Group did not announce online sales of individual brands, the overall e-commerce sales It has risen by 80%. The correct way of grasping both hands makes Gucci go upstream in the wave of luxury goods being hit by e-commerce.
RBC Capital analyst Rogerio Fujimori pointed out to Women's Daily that there is no doubt that Gucci is the golden age. It’s just that after all, the heights are not overwhelming, and the “Renaissance†wave that Gucci brings in a short period of time will fade away.
But for now, Alessandro Michele's highly consistent and distinctive image strategy has maintained consumer loyalty and the brand is still in a period of rapid growth.
Editor in charge: Wang Zhen
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