Clothing Line Pressure Inventory Sales Is King.

The 2014 earnings report released by Hermes on March showed that the annual income was about 28 billion 130 million yuan, an increase of 9.7% over the same period last year. Operating profit was 10 billion 700 million yuan, an increase of 6.7% compared with the same period last year. Net profit was about 7 billion 100 million yuan, an increase of 8.7% over the same period last year.

Among them, its watch business was hit hard by the Chinese market, and its sales plummeted by 10.6%.

According to the category, leather goods, clothing and accessories and silk fabrics are the three largest sales accounts.

Among them, sales of clothing and clothing accounted for 23%, and silk accounted for 12%.

In 2014, sales of Hermes clothing accessories increased by 15%, while perfume and wristwatches fell by 8% and 17% respectively.

Nowadays,

It has become the most important market of Hermes group, accounting for about 34% of sales, far higher than the second place, accounting for 19% of the European market.

The group's overall performance is stable, but clothing and clothing categories are still under stock pressure.

For high-end consumers, the choice of clothing can be fashionable and popular in the pursuit of diversity and individualization.

Zhou Ting, President of the Institute of wealth and quality, thinks that Hermes has a lot of pressure on the digestion of clothing products.

Get out.

It is reported that some brands of products will enter the stores of downstream businesses through wholesale channels. However, the blocking of wholesale business will result in a large backlog of products on Brand Company, and the company will promote sales in the form of VIP sale.

Otherwise, the adverse effects of inventory on the company's cash flow and other operations are still great.

Over the past decades, the main marketing method of luxury goods is to raise prices, maintain value or even declare appreciation.

In April last year, many luxury goods also launched a round of price surges, the highest increase of about 15%, to compensate for the loss of profits caused by sales decline and enhance brand image.

Zhou Ting said that when consumers are in the initial stage of purchasing luxury goods, they lack the recognition of brand concept and origin, and price is the main factor to decide whether the brand is good or bad.

But nowadays, consumers and brands have realized that the practice of keeping attraction with a single price increase is no longer applicable to mature consumer groups.

Most of the value and value added of luxury goods are marketing gimmicks.

There is a way out for the luxury industry to become fashionable and even popular in the future.

The legend of value preservation will accelerate the popularization trend of the luxury industry in the future.

The legend of value preservation is easy to break through in the second-hand luxury market, and the marketing significance of this gimmick is also getting smaller and smaller.

In many pawnshops, most of the new luxury goods can be bought at half price.

Zhou Ting predicts that the value of luxury goods will also be limited to commemorative products of very small quantity and category.