Peak Brand Business Downturn, Jewelry Fashion Pioneer Hind Legs

P, the world's second largest luxury goods group, has recently been unable to find its own fashion accessories business. Although Cartier and Van Cleef & Arpels, the two largest jewellery families, have been greatly improved by the strong performance of the last financial year, they have been dragged away by the fashion's "hind legs". < /p >
< p > < /p >.
< center > < img alt= "" width= "400" height= "355" src= "http://img2.china-ef.com/news/2013/201306090843452.jpg" / > < /center >
< p > < /p >
< p > the peak fashion accessories business includes men's brand Dunhill, fashion accessories brand Chlo and Lancel, senior women's wear brand AzzedineAlaia, Shanghai Tang and luxury goods business Net-A-Porter group. Dunhill is struggling to survive in the biggest remaining Asian market. Facing the younger and younger Burberry of London, the digital challenge of Burberry is obviously inadequate. Chlo once was so beautiful that she became the pioneer of advanced garment concept 60 years ago. Today, I really don't know that her "Paraty" bag can still be eaten for several years. As for Lancel, although Coco Racha is a fashionable advertisement for "moving", the Parisians still have a long mouth and do not admit that it is a luxury. Needless to say, the era of Shanghai Tang is over. Think of the handsome Shanghai building in Hongkong, which has been taken up by the Abercrombie & Fitch handsome boy who is naked. But the small brand of Alaia is expecting him to earn a good reputation. < /p >
< p > according to the first quarter financial results of the 2013 fiscal year, Cartier and Van Cleef & Arpels business profits increased by 134% compared with 2009, while fashion accessories business struggled basically in the past 5 years, and had little profit contribution to the group. So that some analysts speculate that the sale of this part of the business is estimated. In the face of Cartier and Van Cleef & Arpels 2013 fiscal year average 35% profit margin and other watches brand (except Montblanc) average profit margin of 27%, the fashion accessories business zero profit margin is really too bad, and the whole company has been weakened. < /p >
Less than P, just a week after the release of last year's financial year, there were two top executives' resignation events, which seemed to confirm analysts' speculation. First announced that the CEO Marty Wikstrom of fashion accessories business will be out of office (effective immediately), but the reason for leaving is not announced. Wikstrom has been holding this position since 2009, and is highly expected to improve the profitability of the business unit. However, contrary to expectations, insisting on four years is not easy for outsiders. Dunhill's CEO is not a good job either. Before November 2012, CEO EraldoPoletto of Furla began to handle Dunhill, but just a few days ago, the media broke out that Dunhill, who had just changed for 1 and a half years, ushered in the new CEO FabrizioCardinali. He had previously served as CEO of Lancel. < /p >
< p > fortunately, the mainstream business of 75% is dominated by jewelry and watches, making up for the shortcomings of the short board. < /p >
< p > in the 2013 fiscal year, the fastest growing jewellery business turnover increased by 21% compared to the previous fiscal year, accounting for 27% of the group's total turnover. Besides, the average operating profit margin of all jewellery and wrist watch brands (except Montblanc) is 32%, far higher than that of Tiffany & Co. 17% and LVMH watches jewelry department 11%. It is precisely because of the very high profitability of the jewellery business that the overall profitability of the group (23.9%) can compete with the Swatch Group of 25.9%. < /p >
< p > finally, don't forget to mention a Baume (Mercier). The CEO Bernard Fornas of the summit group said at the recent 2013 fiscal year conference: "all brands of watches brands have achieved strong sales results except Baume & Mercier." Baume & Mercier, which has good reputation in France, has not been able to perform well in emerging markets. In China, people can hear more or less the impression of each wrist watch brand under the banner. Only Baume & Mercier still let people stay in the advertisement that Jacky Cheung once endorsed, but that was 4 years ago. Earlier this year, the company announced a joint venture with Zhou Dafu, which is responsible for selling Baume & Mercier in the mainland of China. How to highlight the siege of high-end watches and Swatch group's many high-end watches under the leadership of the market leader should be the most troublesome problem for this brand. < /p >