European Luxury Brands Are Becoming Popular Again.

According to the world clothing and shoe net, there is only one shop in London's Bond Street which has the most expensive retail space in the world.

It's Italy.

Tycoon

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In the midsummer morning of a windy summer, the burly security guards placed the velvet barrier barrier along the shop side gilded windows.

In the shop, a dozen black assistant assists in running on the bright red carpet, serving 20 customers on the first floor of the shop.

Basically, the ranks of tourists were lined up outside the shop, and many of them watched the shop anxiously through the corner of the shop window.

Gucci's blind love in the customer group has increased its sales growth of up to 43.4% in the first six months of this year.

This figure, along with the growth of sister brand YSL 28.5%, has brought record revenue and profit growth to Kering, the brand parent company.

Kai Yun group's earnings report was released 24 hours later in the world's largest (by revenue) luxury group LVMH.

LVMH claims that strong performance in Europe and Asia supported sales growth in the 12% quarter of the second quarter.

Profits in the first half of this year were also the fastest since 2011.

Another rival, Moncler, a high-end brand in Italy, said that it expects to continue to grow this year after exceeding expected growth in the first half of 2017.

This is only part of the trend in the luxury industry.

In fact, European luxury giants did not quietly recover, but came back in great fanfare.

A Louis Vuitton store in Virginia.

LVMH announced that strong growth in Europe and Asia has increased its sales in the second quarter by 12%.

Their success is very obvious on Bond Street: Liu Wendi, a visitor from China, goes with his sister to a team outside the Gucci store.

The sisters with iPhone in hand and Gucci wearing large sunglasses are going to enter the store to start sports shoes and Lok Fu shoes. If possible, they will also buy handbags.

"I was completely fascinated by Gucci."

Liu Wendi said.

The two sisters expressed their reverence for the Alessandro Michele, known as the Gucci Renaissance hero, the bearded and glamorous creative director, Sandro Michel.

In just two years, with the help of Gucci Marco (Marco Bizzarri), Michel took the lead in carrying out a gorgeous pformation with this difficult brand at that time, and rebuilt the brand with colorful and sophisticated aesthetics, exquisite leather products and smart social media strategy.

Julieta Vega, who traveled from Spain on weekends, said: "I like Gucci's clothes and advertisements, but the bag is the real reason why I came here." Jurietta Vega said.

There are already three Gucci handbags, she added. Every time she goes abroad, she goes to the local Gucci store.

"You never know what you can't buy anywhere else."

Customers like Liu Wendi and Vega supported the recovery of Gucci and its parent company.

At the same time, Kai Yun group, which owns Balenciaga, Alexander McQueen and other brands, said that similar sales in the first half of 2017 increased by 26.5% compared to last year, reaching 7 billion 300 million euros, while operating profit increased by 57.1% to 1 billion 300 million euros.

The two data exceeded analysts' expectations.

In the first half of this year, Gucci achieved a 43.4% sales growth.

These results represent a much more optimistic picture for European luxury companies than last year.

According to Bain consulting, last year, the global market for personal luxury goods did not grow, and its size was at 2490 euro billion, the first time since the financial crisis.

The luxury industry has been hit by the slowdown in China's economic growth. The exchange rate change has also affected the results. Besides, the mood of consumers has also been affected by violent and terrorist attacks.

But now the situation is improving. European brands have been supported by the resurgence of domestic and overseas consumption of Chinese consumers this year, and the impact of European tourism recovery. Luxury brands have achieved success in positioning themselves and responding to the tastes of particular groups, especially the Millennials.

For example, Louis Vuitton launched a popular joint series last month with street corner Supreme to sell limited cooperation in the form of time limited flash stores that consumers like 25 years old.

Gucci, which has powerful and diverse electronic platforms, is one of the first to use Snapchat live TV fashion show. The company says nearly half its customers are Millennials.

Luca Solca, director of luxury jewelry research at Exane BNP Paribas, Paris, France, said: "the market is faced with a new rule. Many luxury consumers already have enough brand core products and flagship products, especially Chinese consumers who are increasingly buying luxury goods." (Luca Solca)

Therefore, they only need to release some new and exciting products when the brand comes out.

The brands that are in the forefront of the industry are those who are aware of the situation.

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The success of European luxury giants is in sharp contrast to those of rivals on the other side of the Atlantic.

Because Ralf Lauren, Michael Kors and Coach, are not being able to maintain adequate balance in determining the key to success or failure of modern luxury brands, brands like brands such as Ralf, Coach, and Coach are being overexposed, and brands continue to depreciate in the eyes of consumers.

Excessive expansion of stores, frequent discount sales and excessive reliance on factory stores seriously affect the performance of these brands.

Worse still, the flow of people in North American shopping centers and department stores has been declining for a long time, and Amazon's leading online competitors are catching up.

Unlike the LVMH and Kai Yun group, which maintain pricing power and market position by avoiding discount, the US centered light luxury brand is pursuing rapid growth, but such growth has collapsed.

Some brands are competing to buy new brands to maintain growth and increase business diversification.

In May, Coach bought a handbag brand Kate Spade for $2 billion 400 million, and Michael Kors turned its sights on top brands to Europe.

This week, it completed its first bulk purchase, spending $1 billion 200 million on London's luxury shoe brand Jimmy Choo.

As consumers converge on the polar poles of the industry, such as Zara and H&M, the fast fashion giants and top brands Gucci and Fendi, those brands that occupy the "central market" are struggling.

Despite their brilliant achievements, European giants also expressed concern.

Bernard Arnaud, chairman and chief executive of LVMH, warned that the current performance was brightest because of a comparison with the performance of a year ago, which was affected by the terrorist attacks in France, and the number of tourists coming to Paris was reduced, which caused a blow to sales in.

At the same time, Kai Yun group warned that a strong euro could hurt sales and influence tourism, leading to more modest growth in the future.

However, sales of Gucci account for about half of the sales of Kai Yun group.

This week, consumers in the Gucci store store on Bond Street showed no signs of slowing down.

Although the team at the front of the morning was very short, the queue turned to the whole block until lunch time.

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