The Luxury Market Is Polarized. Gucci, LVMH And Hermes Are Doing A Good Job.

Recently, many luxury brands have announced the latest earnings.

From the data, we can see that the Matthew effect of the luxury market is more and more obvious.

Industry giants continue to soar, Gucci, LVMH, Hermes are making a new record, and the income gap between Gucci and LVMH has shrunk to 2 billion euros, but Gucci has recently been caught in a racial discrimination storm, and its performance will usher in an inflection point. Canada goose who has entered the Chinese market for less than a year has also made a brilliant achievement, with net profit rising by 72%.

In addition, the net profit margin of Coach parent Tapestry is still not as good as expected, but the performance of Capri, Burberry, Tod's and Pandora has declined to varying degrees.

From the performance data of the major brands, the Chinese market still occupies an important position, such as the remarkable rise in the performance of the Asia Pacific region, such as Hermes, Burberry and Seng, mainly benefited from the driving of the Chinese market; the super expected performance of the Canadian geese is mainly attributed to Tmall; the total revenue of Pandora is down 4% in the year, but China's sales continue to rise by 23.6%.

It is not hard to see that the Chinese market has become an engine for the growth of luxury brands. At the same time, we can see that the growth of many luxury brands is heavily dependent on the Chinese market. Sudden changes in the Chinese market will hurt the luxury brands.

Gucci sales broke 8 billion euros last year, and the LV income gap narrowed further.

Kai Yun group's annual sales rose 29.4% to 13 billion 665 million euros in 2018, operating profit rose 46.6% to 3 billion 944 million euros.

During the period, the sales performance of Kai Yun Group continued to increase in all regions. The growth rate in the Asia Pacific region including China reached 34%, while the North American market registered a strong growth of 38%. Sales growth in Western Europe, Japan and other regions was 24%, 24% and 23%, respectively.

Gucci sales rose 36.9% to 8 billion 285 million euros last year, the first time in the history of 8 billion euro club, operating profit surged 54.2% to 3 billion 275 million euros.

It is reported that LVMH's core brand Louis Vuitton's 2018 annual sales volume is 10 billion euros, which means that Gucci's income gap from Louis Vuitton is only 2 billion euros, a record closest to history.

However, recently, a Gucci sweater product was accused of racial discrimination and was condemned as "associating the faces of black people". At present, the product has been put off the website. Gucci has also issued an apology statement, but this crisis public relations skill has not gained acclaim, and the Gucci performance will be faced with the turning point.

Hermes has achieved a record high of nearly 6 billion euros in fiscal year 2018.

Herm s sales increased 10% to 5 billion 966 million euros in 2018, a record high, with a profit margin of nearly 34% and a record 34.6% in 2017.

Sales in all regions have increased, excluding Japan's most obvious growth in Asian market, an increase of 13.7%, mainly benefiting from the strong growth of sales in China and East Asia.

During the period, Hermes opened a new store in Landmark Prince, Hongkong, Changsha, Xi'an and Australia Chadstone.

It is worth noting that sales of all business lines of Hermes have been growing. Clothing and accessories are particularly outstanding. Sales grew by 14.1% to 1 billion 310 million euros, the largest increase in all sectors.

In October last year, Hermes went on a new version of the Chinese official website, including 8 handbags, ready-made clothes, shoes and perfume, but the core handbag products Birkin handbags and Kelly handbags were still unable to purchase online.

It is reported that Hermes's online business in other Asian countries will also be launched.