Can Gucci President Of Greater China Change The Performance Of The Downturn?

After nearly 1 years of vacancy, Kering, the second largest luxury group in France, recently announced that MerindaYeung, general manager of Gucci (Gucci) China Taiwan region, will be Gucci's president of Greater China.

In January 2014, Gucci, former chief executive of Greater China, left after Shen Xiangmei left.

MerindaYeung will be formally completed in January 2015.

"It's hard to say that it's hard to say that it's easy to change the trend of Gucci's development."

Zhou Ting, President of the Institute of wealth and quality, told the first Financial Daily reporters that Shen Xiangmei, the general manager of China, was also a veteran with many years of luxury experience, but failed to turn the tide of decline.

People familiar with the matter told reporters that Tang has also left this year.

In fact, recent personnel changes in the Asia Pacific region of Kai Yun group are frequent.

Just this month, Deng Wanying, President of the Asia Pacific region of Kai Yun group, announced that it will leave in December 1st. Its position will be replaced by Vice President of human resources, Kai Yun group.

It is reported that the reason for Deng Wanying's leaving is to seek "a new chapter in life", but will continue to retain a seat for the board of Kai Yun group.

The sales figures for China in 2013 were not released, but HSBCHoldingsPLC estimated that sales in the Chinese brand declined by 2.3% last year.

HSBC said the Gucci China sales increased by 30% and 21% respectively in 2011 and 2012 respectively.

"Last year has predicted that there will be a big wave of luxury enterprises changing this year, because some big brands will have a downward trend in the new market situation, and the responsibility of the market downturn is also a common way for the responsible person to undertake."

Zhou Ting said.

As of the third quarter of September 30, 2014, Gucci sales fell 1.6%, from 864 million 800 thousand euros in the same period last year to 851 million euros, down 1.9% from the base, much higher than the 0.6% decline expected by analysts, and fell for the 5 consecutive quarter.

Jean-MarcDuplaix, chief financial officer of Kai Yun group, said the Gucci brand recovered after the two quarter.

He refused to give any timetable as to when the Gucci brand could regain its growth.

However, from

Cloud level has made a lot of efforts to boost the performance of Gucci brand, including the opening of cloud group in September this year, the decision to withdraw the right to operate Gucci glasses category, so as to start the strategic deployment of luxury and sports field glasses business.

Due to two years' early termination of the existing authorized agency agreement with Safilo, the group has paid Safilo about 90 million euros in compensation for breach of contract.

"Withdrawing the right to operate will help Gucci control the whole industry chain of spectacle products and benefit its brand image, operation and channels."

Zhou Ting said that because Gucci glasses business has done well, luxury and sports high-end glasses and sunglasses have two digit growth rate in recent years, so it will help future profits.

In the third quarter of fiscal year 2014, the revenue of Kai Yun group was 2 billion 606 million euros, an increase of 3.3% over the same period last year, a 4.4% increase over the previous year.

The latest WorldwideLuxuryMarketsMonitor global luxury market monitoring report released by Bain consulting and Italy luxury industry association shows that total sales of luxury goods will increase 2% to 223 million euros this year, and the growth rate is far below the high level since 2011.

In 2014, it was greatly affected.

With the change of anti-corruption, luxury consumption and consumption patterns, luxury goods for the first time showed a negative trend in the Chinese market. In the first 8 months of 2014, China's consumption grew by 10%, which was significantly lower than that in the same period in 2013.

At the same time, it shows the trend of polarization in the luxury goods market, which is most popular with light luxury products and absolute luxury goods.

For the decline of China's performance, Kai Yun group has previously interpreted the negative performance of China's market environment, and the pformation of Gucci to high priced products has affected the sales of entry-level low-priced products.

"The market environment does have some effect."

A luxury industry insider told reporters, but the important reason is that Gucci failed to keep pace with the pformation of the luxury market, and its own management in China also had problems. Product quality and services were subject to many complaints. The prevalence of counterfeit goods made it a street bag. At the same time, the upgrading of Chinese market consumption and the psychology of consumers going to Logo also caused some pressure on Gucci.