LVMH Net Profit Of 3 Billion 447 Million Euros Last Year.

< p > French MOET & CHANDON Hennessy a href= "//www.sjfzxm.com/news/index_c.asp" > LV < /a > group (LVMH group) recently released its 2013 earnings report. During the reporting period, the company received a total revenue of 29 billion 149 million euros, up 4% over the same period last year, and realized a net profit of 3 billion 447 million euros, which was basically unchanged from 2012.

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P > this year's performance is equally flat.

The first quarter results released by LVMH group in 2014 in April 9th showed that the sales of the company increased by 4% compared with the same period last year, and the revenue was 7 billion 210 million euros.

LVMH group said in its earnings report that after a number of years of explosive growth, the company has entered a relatively mild growth period.

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< p > < strong > restriction on "three public consumption" has an effect less than /strong > /p >

< p > LVMH group is the world's largest "a href=" //www.sjfzxm.com/news/index_c.asp "luxury" /a group, which owns more than 60 brands, including wine and spirits, fashion leather, perfume cosmetics, a href= "//www.sjfzxm.com/news/ index_c.asp", watches jewelry, "/a" and retail and other five departments.

Among them, the fashion leather Department achieved operating income of 9 billion 880 million euros in 2013, and operating profit fell 4% to 3 billion 140 million euros.

The fashion leather Department has the greatest contribution to the company's performance, but it is also the only department with declining revenues and profits.

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< p > however, in the latest quarterly results for the first quarter of 2014, the business of fashion leather Department has been promoted.

In the first three months of 2014, the revenue of fashion leather Department increased by 11% to 2 billion 639 million euros, the largest increase in five sectors.

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< p > LVMH group said in its earnings report that its brandy brand sales in China have declined. At present, the company is committed to promoting Hennessy's new product, but China is still the second largest liquor consumer market in the world.

In 2013, the Chinese government strongly restricted the "three consumption" and crack down on corruption, breaking the high growth of luxury goods in the Chinese market for 12 years, especially the high-end liquor and men's watches.

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< p > the lack of product personalization is another reason for the poor performance of LVMH group in China.

Zhou Ting, President of the Institute of wealth and quality, told the first Financial Daily reporters that with the gradual diversification and individuation of Chinese consumers' psychology, consumers' interest in the popular brand has been reduced, and instead, they have sought for a more niche brand with a sense of design.

This change poses a challenge to LVMH, which has many large super groups.

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< p > < strong > luxury brand positioning needs to be adjusted < /strong > < /p >.

< p > the number of luxury goods cards handed down last year is lower than market expectations.

In the 2013 fiscal year ended January 31, 2014, the net profit of luxury goods maker Prada (Prada) was 627 million 800 thousand euros ($870 million), only 0.3% higher than that in the previous fiscal year.

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Xue Shengwen, a senior research fellow at CIC, said that the poor performance of luxury goods is partly due to the fact that the global economy is still recovering and the per capita consumption level is lower. On the other hand, China has been hit by the government's anti-corruption efforts as one of the main markets for luxury goods in the world. P

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< p > after the whole industry enters a stable period, the brand with clearer design style and more accurate positioning will get better.

LVMH group mentioned in its earnings report that Si Lin (C line)'s performance was excellent and sales hit a new high. Fendi continued to focus on high-end products and selectively expand sales channels.

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< p > this also confirms the view of Armando Branchini. He is very optimistic about high priced brands such as Si Lin (C line) and Hermes s, while the growth trend of the relatively low price super brands, such as Louis Weedon (Louis Vuitton), will be relatively slow. These brands need to constantly adjust their positioning.

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< p > Zhou Ting said: "in the past, Louis Vuitton and other big names have been popular and fashionable in order to cater for consumers. The emergence of ultra high end brands and niche brands has broken the pattern of monopolizing the market by big names."

She also pointed out that as consumers become more mature, they will pay more attention to the price performance and quality of service, and put the brand in the second place.

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