While Gucci and Louis Vuitton blame the decline in sales on their high-end market drivers, they think it will help them regain some lost glory and there is growing evidence that they are losing to updates, more
After years of rampant expansion, the cloud (PRTP. PA)and LVMH (LVMH. PA)
Both Gucci and Louis Vuitton parents found people like Michael Coles.
It turns out that N is smarter in rapid development
The growing middle class, especially in big markets like China.
Emerging market customers
Major growth engines in the industry-
I was ready to save money to buy traditional identity symbols such as Louis Vuitton 625 euros ($860)
But now they are showing a stronger interest in new brands, such as Michael Kors, which is cheaper.
Saltanat Shamova, 25, said: \"brands like Louis Vuitton are expensive and I see it everywhere . \"year-
Kazakh old man studying in London.
\"Michael Kors is the best for me because the design is simpler and affordable. ” The New York-
Based on the brand, it embodies affordable luxury: without a high-priced label, it gives consumers a taste of grade.
Part of Kors\'s success is that its products cleverly replicate the style of large luxury brands such as Louis Vuitton\'s roller bag and Chanel\'s quilting leather womens tote bags
Kors\'s $300 Weston backpack has the same tassel pompoms and shapes as Gucci\'s $2,650 Jackie backpack. Other fast-
More and more fashion luxury brands include more American consumers. S.
Kate Spade and logo center and women
Coolburch, as well as the classic Longchamp handbag manufacturer in Italy and France, is colder and quieter Furla.
There are also Carven and Isabel Marant in France and Karen Millen in the UK.
Industry watchers say China\'s fast-growing consumer culture and government policies have hindered the development of the luxury industry.
Giving helps explain the rise of these more affordable brands.
\"The Chinese are discovering new, middle
Segment-Chief Marketing Officer Arjen Kruger said: \"The breakdown of brands, as well as the country\'s austerity measures and the blow to show off spending means they will want to spend less on jewelry
Global Blue, a refund company that monitors Global spending.
This is a big issue for the parents of Kering and LVMH, who have built their own empire on these two luxury brands, which still account for their profits and market value today
\"They are squeezing too much milk and there is no milk now,\" the CEO of a large privately owned French luxury brand told Reuters at fashion week.
LVMH also owns luxury fashion brands Dior and Celine, which invest in luxury brands that are more readily available, such as Marc Jacobs\'s Marc, Marc Jacobs\'s cheap brands, which account for 70% of its total revenue.
But the brand\'s sales are estimated to be as high as $1 billion, more than £ 7, compared to Louis Vuitton. 5 billion euros.
LVMH will lose some growth, which it outlined last year as it floats on Marc Jacobs.
Gucci and Louis Vuitton have tried to become more exclusive in the past few years, reducing entry
Improve product grade, strengthen the price of expensive leather bags, and brake when opening a shop.
\"This is a strategic choice to ensure long-term stability.
CEO Francois Kaiyun-\"the tenure of this brand is optional
Henry Pino said last month.
Gucci and Louis Vuitton both say their upward trend explains why their annual sales growth has fallen to a low level.
Single digits from mid
The level of teenagers three to four years ago.
But the problem seems to be more about the overall demand for brands and the increasing popularity of luxury brands that are more readily available than the products they offer.
Analysts say Gucci and Louis Vuitton may have cut the number of participants.
But the business still accounts for more than half of the revenue, which has caused people
The terminal business can maintain sufficient sales and profit growth for a long time.
\"Entry-level products from Gucci and Louis Vuitton are facing a lot of competition from new brands such as Michael Kors and woolburch, and this trend is likely to continue, Zuercher said.
Paasaka Dynapartners luxury brand fund manages 12 million euros.
\"At the moment, it\'s hard to imagine that Gucci and Louis Vuitton will grow back to their previous medium-term levels.
The level of youth in the next few years.
The market understands that too.
LVMH and Kering trade in forward multiples of 18 times and 15 times, which is roughly the same as the industry average of 17 times, kors\'s share price has quadrupled to 33 since its 2011 listing.
In addition, after recording an annual sales growth of about 20%, Michael Kors is expected to continue to grow at a rate of more than 40% over the next few years.
Analysts estimate that Kors\'s annual sales are about $3 billion, and revenue in Europe is about $0. 4 billion, up from $50 million in 2011 --
Driven by the high demand and heavy investment in the market and new stores.
Gucci and Louis Vuitton are not the only victims of luxury brands. Mulberry (MUL. L)
The company issued a profit warning in January, and its sales growth declined after rising prices.
Furla CEO Eraldo Poletto sees \"a lot of data on business\" in accessible segments and points out the growing middle class
First-class buyers in markets such as China.
Goldman Sachs estimates the middle class
Defined as a person with a minimum annual income of $30,000.
Will rise 24.
From 2010 to 4% and then to 14, an average of 2015 per year.
The concept of Karen millon is cutting
Edge fashion is launched at an affordable price, with its clothing price of about 250 euros, and the company says many customers are global travelers.
\"Our client is a confident, professional, urban woman. . .
\"We have a lot of Russians and Chinese shopping in Paris and Brazilians in New York,\" said Andrew Ware, Karen Millon\'s chief financial officer . \".
Like Kors, Karen Millen has stepped up his investment, and in the past 12 months it has increased its advertising budget by five times, about 35-
There are 40 stores per year and there are currently about 376. ($1 = 0. 7277 euros)
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