Under The New Era, The Revolutionary Road Of Luxury Brands

Those who have always been very cold and reserved, may have laid down the attitude of pride or sooner or later, and have embarked on the road of revolutionary revolution either voluntarily or passively.

In the blink of an eye, 2019 has passed 4 points. Let's take a look at the new changes and initiatives in the new year.

Herm s: enter the beauty industry

With its 182 year history and its long established luxury brand Herm leather s, its leather handbag business has finally decided to take a bold step and formally enter the beauty industry. It plans to launch beauty products in a large scale in 2020.

Herm s CEO Axel Dumas said that in the increasingly fierce competition in the industry, it is very necessary for the brand to fully distribute the cosmetics, perfume and personal care market, so as to enhance the competitiveness of the brand itself.

The Herm s beauty makeup series will inherit the Herm style s workshop style. It will be developed within the group and delivered to the third party suppliers in France and Italy.

The first Herm color s makeup series will be launched in 2020, followed by a protective product.

In fact, Herm s launched perfume product line in 1930s, but it was not appreciated by the group. It was only a small gift and accessories role. Until 2004, Herm s only appointed the first exclusive perfume technician.

In 2017, the brand released a Twilly perfume with scarves, which was sought after by young consumers. In January this year, Herm s launched the new perfume Un Jardin Sur La Lagune designed by Christine Nagel.

In addition to perfume, Herm s launched bath products in 2014.

According to the latest data, Herm s perfume sales currently account for 5% of the group's total sales, about 300 million euros, far less than the other luxury brands such as Dior and Chanel.

Prada: speed up reform, no longer reduce sales.

Prada group announced that brand stores will no longer carry out quarter end discount promotions to protect brand image and increase profit margins.

Prada said that it will no longer reduce sales from 2019.

The group will accelerate the reform process in the future and continue to increase investment in three areas: technology upgrading, digitalization and basic production facilities.

In the coming months, the group will complete strategic restructuring and organizational restructuring, with a more flexible organizational and updated understanding to interpret the new generation's cultural evolution and brand image.

In the past 4 years, Prada sales have been declining.

The group has formulated and implemented a series of strategic changes to boost its performance, such as investing in building e-commerce business, replacing management teams, and launching guerrilla shops focused on Asian markets.

Driven by these new strategies, the group's sales began to pick up gradually from the end of 2017.

Prada group's latest annual report shows that as of December 31, 2018, Prada group's sales reached 3 billion 142 million euros, an increase of 6% over the same period last year.

This is the first growth of Prada group's sales in four years.

Celine: refurbishing shops worldwide and introducing men's wear series.

The replacement of Logo's Celine is very firm on the road of innovation.

2019 in the first year of the year, Celine rolled up his sleeves and set off his arms and set up a global shop renovation plan.

In February this year, Celine opened in the new concept flagship store, 650 Madison Avenue, Manhattan, New York.

The new flagship store has an area of about 465 square meters, and its shop style is mainly black and white, with granite walls and ginger shelves.

Celine stores in New York, Tokyo and Paris will be updated in March. Shops in Losangeles, London, Milan, Shanghai and Beijing will be updated by the end of the year.

In addition to updating flagship stores worldwide, Celine will also add and remove some shops worldwide and expand some stores.

Meanwhile, Celine launched the first independent men's wear series, the first men's wear shop opened in Paris in March, and second men's wear shops will be opened in Milan.

In the future, Celine will take more stringent control over the allocation of investment in men's and women's clothing so as to maintain brand image and existing loyal customers.

The replacement of Logo, store expansion and renovation, and the introduction of men's clothing series, behind this series of radical innovations, is obviously the ambition and hope of the parent company LVHM group to new Celine. LVMH Group believes that the brand is on the way to Euro 2 billion.

Christian Louboutin: enter the hotel industry

After expanding beauty and children's shoes, the French luxury brand Christian Louboutin, famous for its red shoes, has made new moves to enter the hotel industry.

The hotel is located in Alentejo, Portugal. The construction will start in April this year and is expected to open in the summer of 2020.

This hotel with 21 rooms and boutique restaurants will be integrated with the surrounding local buildings, and it embodies a colorful, warm and comfortable style.

Christian Louboutin himself said that he would put all the furniture, ceramics and indigenous artworks he had collected all along, and the brand hotel would have a "simple appearance and a shocking interior".

Brunello Cucinelli: Children's clothing is coming out.

Italy luxury brand Brunello Cucinelli group plans to launch children's clothing series in the second half of this year.

At the same time, the group has set a new target of doubling sales in the next ten years.

In 2018, the Brunello Cucinelli brand increased its investment in digital channels, and invested up to 45 million euros in sales, manufacturing, logistics and IT, and launched the clothing customization and wear service for male customers in the world's 25 largest brand stores.

In the 2018 fiscal year, Brunello Cucinelli brand sales increased by 553 million euros, up 8.1% over the same period last year. Business growth has been achieved in all regions, with sales of 54 million 900 thousand euros in the Greater China region, an increase of 28.6% over the same period last year.

Wakubo Rei: enter the beauty industry

Wakubo Rei, who has always been free, is also unable to restrain himself from promoting the cosmetic business.

At the end of May this year, Wakubo Rei Dover Street Market, a multi brand retailer set up by Denver, will open its first beauty shop in the Marais District of Paris, France.

The new store covers an area of about 2150 square feet and will be designed by Wakubo Rei personally. However, the shop name has not been announced yet.

Wakubo Rei had an annual income of $320 million, but only 3% of the total income was from cosmetics and perfume.

The new beauty shop will sell about 60 kinds of perfume and all kinds of beauty products of Wakubo Rei brand.

These products will be selected from shops in London, Tokyo, New York, Beijing, Singapore and Losangeles in Denver street fair. Besides the 40% authorized production to Puig group in Spain, there will be other brands of perfumes and beauty products selected according to the aesthetic standards of Denver street fair.

Giorgio Armani: refurbishing flagship store, building luxury housing, pushing jewelry series

Madison Avenue in Manhattan can be regarded as a miniature of luxury.

In addition to Celine's first refurbishment of flagship store on Madison Avenue, Giorgio Armani will redesign flagship store at 760 Madison Avenue.

The flagship store, which has a total area of 16 thousand square feet (about 1486 square meters), has been the flagship store of Giorgio Armani since 1996.

The Armani plan is expanded to a total area of about 96 thousand square feet (about 9000 square meters).

The project is expected to start in 2020 and completed in 2023. The bottom two floors after renovation are Giorgio Armani flagship retail boutique. The overall size is almost the same as that before renovation, while 19 luxury apartments will be added to the building, and the interior design will be handled by Giorgio Armani.

As we all know, Giorgio Armani has long started the operation of interior design brand Armani Casa.

In 2017, the group launched a brand restructuring strategy.

The group brand has been reduced from 7 to 3, including Giorgio Armani, Emporio Armani and Armani Exchange. Giorgio Armani also includes the same name clothing product line, the advanced custom product line Giorgio Armani Priv and the interior design brand Armani.

And at the end of 3, Giorgio Armani launched a series of jewelry, officially involved in the field of high jewellery, which means that the brand business has reached every corner of the luxury industry.

This jewelry series has 23 single items, which belong to the Giorgio Armani Priv e advanced custom series.

The inspiration for jewelry design came from the Jazz Age of 20s, with the main tone of red, white and blue.

Fendi: build luxury housing

Compared with other luxury brands entering the beauty industry and expanding the product line, Fendi's action is obviously more violent.

Well, besides selling bags and selling clothes, Fendi will sell the house next.

Recently, Fendi joined The Palmeraie, a retail development project in Scottsdale, Arizona, and plans to build 41 customized Fendi private luxury residences in the region.

The Palmeraie is a luxury development project which covers an area of 122 acres and is worth about 2 billion dollars. After completion, it will have 250 thousand square feet of retail space, including 60 luxury goods and specialty boutiques, as well as restaurants, open-air Roof garden and so on.

The project will be launched in the near future and will be on sale this year. The overall project is expected to be fully delivered in 2020.

This is not the first real estate project of Fendi. As early as August 2014, Fendi launched the first brand real estate project Fendi Chateau Ocean Luxury Apartments in Miami, USA. The Fendi apartment has 12 floors and 58 separate rooms, with the Fendi home brand Casa as the interior decoration, and the selling price was between 5 million and 22 million dollars.

Road to change

"You are in the office today, and you may be out tomorrow."

In the new era, new changes, everything is changing rapidly, and competition is becoming increasingly fierce.

Under the dual stimulation of new retail and new consumption, the fashion industry is constantly being infiltrated and pformed by various new technologies and technologies.

For the rapidly changing market environment and the increasingly elusive demand for consumption of the millennial generation, whether it is luxury brands or parity fashion brands, it is hard to have a simple path to take the world.

The retail industry is changing all the time.

In addition to the competition among mature brands, emerging brands and business forms are also accelerating the turbulence and pformation of the fashion industry.

With the rapid development of the new economic structure, a group of very young new wealth has risen rapidly. The millennial generation that keeps up with the trend, listens to hot words, understands design, loves online shopping, and is especially willing to spend money on luxury goods is increasingly becoming the target consumer group competing for by brands.

It can be said that the rapid growth of the middle class group and the rise and growth of the younger generation of consumer groups are the key factors and the main driving force for the growth of the luxury market.

The younger generation represented by the millennial generation is becoming larger and more diverse. Obviously, the big data from the Internet are closing the gap between the education level of consumers and the knowledge of luxury goods.

Strong economic strength and stronger consumption desire are playing a more and more important role in the luxury consumer market. The trend of luxury consumption is obvious, and younger change has become a key issue that luxury brands have to face directly.

There is no alternative but to change.

Whether it is prudent Herm, s, conservative Prada, radical Celine, or publicizing Wakubo Rei, the consistently luxurious and luxurious big holders who have always been very cold or reserved have either laid down their pride or sooner or later stepped on the long road of change. They have begun to actively expand their product lines, diversify their multi-dimensional, multi-level and multi category businesses, explore the development of e-commerce, gather their popularity through social media and digitalization strategies, update their shops and improve their consumption experience, spread their brand lifestyle, embrace their young consumers and embrace the new era.

For example, Herm s and Comme des Garons enter the beauty industry, Fendi and Giorgio Armani enter the real estate industry, and Prada accelerates strategic innovation.

If the replacement of Logo shows the determination of the brand to turn over a new leaf, a series of new bold actions and actions will undoubtedly reveal the ambition and goal of the luxury brands to wash away the aging image.

After all, in the face of commercial interests, it is not necessary to persist in stubbornness. The rigid and rigid thinking frame should be broken.

It is the right attitude to keep pace with the trend, keep pace with the times, truly attract consumers, and keep innovating in the changeable market situation.