The price of luxury goods has increased again!
Recently, there is news that luxury brands such as Chanel and Louis Vuitton will increase prices across the board in China, and The amplitude exceeds the normal level in previous years. Why is the price increased significantly at this time, and how much is the price increase?
When the reporter came to a shopping mall in Shanghai, he found that even though it was a weekday afternoon, there was already a long queue outside the Chanel store. A consumer queuing up told reporters that this price adjustment is not the first time Chanel has raised prices this year. She said that there was an increase just six months ago. When she bought the CF (package type), it cost 42,600 yuan. Last year, it sold for 38,800 yuan.
The reporter learned that Chanel’s price increase this time ranged from 15% to 20%. The price increase has been completed since midnight on May 14. The reason why there are many consumers queuing up outside the store is because they mistakenly believe that the store has not yet adjusted the price. The clerk told reporters that the prices of all bag products have increased across the board, mainly due to rising costs.
Reporter: How much has CF (package type) increased approximately?
Shanghai Chanel clerk: About 7,000 yuan. It has a lot to do with the increase in raw material leather, and labor is also very expensive.
Then the reporter came to the Louis Vuitton store. The clerk said that Louis Vuitton has already raised prices across the board by about 10%. However, when the reporter questioned that Louis Vuitton had already increased prices in three months, When I asked about the price twice, the store clerk said that the price might go up again. Prices increase every year, twice a year. I heard that there will be another increase, around the end of October and November.
The reporter conducted interviews in Lujiazui, Shanghai on the successive price increases of luxury goods. Most consumers said that brand price increases are market behavior and are understandable, but they will not pay for them. A small number of consumers said that it is currently difficult to go shopping abroad, so if there is a price increase for their favorite styles, they can only accept it.
Some reports indicate that due to the epidemic, the global luxury goods market is expected to shrink by 20% to 35% in 2020. According to data released by Louis Vuitton’s parent company LVMH Group, the group’s sales in the first quarter of this year were 10.5 billion euros, a year-on-year decrease of 17%. Industry insiders believe that the luxury goods market has taken the lead in rebounding in China, so this round of sharp price increases is mainly to recover the sales losses in the first quarter.
Guo Bin, Chief Analyst of Pacific Securities Textile, Apparel and Retail Industry: From now on, its price adjustment scope mainly covers the Asia-Pacific region. The entire Asia-Pacific region, represented by China, has relatively good control over the entire epidemic. Judging from this, the pace of offline consumption recovery in the entire Asia-Pacific region is definitely the earliest. Luxury brands are also trying to replenish their sales at low prices in advance to capture the recovery of this batch of offline demand.
Regarding the reasons for the frequent price increases of products this year, the reporter called the staff of the LVMH Group, the parent company of the Louis Vuitton brand, several times, but did not receive a response as of the broadcast of the program.
Japanese large clothing brand Renown filed for bankruptcy and was delisted
Due to the spread of the COVID-19 epidemic and the reduction in people’s outing activities, the sales of clothing and accessories in department stores have dropped sharply. In addition, 5.3 billion yen of accounts receivable have not been recovered from the subsidiary of the parent company Shandong Ruyi, resulting in Renown’s two consecutive fiscal years of losses. , causing the company’s capital chain to break. It is reported that this is the first time this year that a Japanese listed company has gone bankrupt, and it is also the first time in 16 months.
The number of small and medium-sized enterprises that have closed down due to the epidemic has increased sharply, and the impact of the economic contraction has affected large enterprises for the first time. The company has announced that it will accept the decision of the Tokyo District Court to initiate bankruptcy protection proceedings. Its total liabilities amount to 13.879 billion yen (approximately RMB 920 million), and the company will be delisted from the main board market of the Tokyo Stock Exchange.
RENOWN was founded in 1902. It is a comprehensive fashion group with more than a century of history and performance. It is named after the Renown, the flagship of the British Empire that came to Japan in 1922, and owns Arnold Palmer. , Hiroko Koshino and more than 30 international brands. In 2010, due to poor operating conditions and the struggle between the company’s management and major shareholders for control, Shandong Ruyi Group took the opportunity to acquire Renown at a low price. This was also Shandong Ruyi’s earliest international fashion acquisition. Shandong Ruyi’s domestic listed company Ruyi Technology also In June 2011, it received a 20 billion yen capital increase from Japanese trading company Itochu.
After the unexpected success of its investment in Japan, Ruyi spent US$4 billion all the way, blindly increasing its capital in Hong Kong Trinity, buying French SMCP, acquiring Swiss Bally, and…Following INVISTA in the United States, an eloquent article in Bloomberg called it the “Chinese version of LVMH”. Shandong Ruyi has built a “fashion empire” that is proud of the world with its overwhelming momentum. However, with the outbreak of the tens of billions of debt crisis, difficulties in operating its brands, and the global impact of the epidemic, Shandong Ruyi has faced the biggest test since its establishment.
In 2017, Shandong Ruyi invested a total of HK$2.2 billion to control Trinity Group through a rights issue and became the largest shareholder of Trinity Group and its men’s clothing brands such as Kent & Curwen. According to Fashion Network, Kent & Curwen has suffered losses of 18 million pounds in the past three years.
In October 2017, Ruyi Technology Group signed a final agreement with the American polymer and fiber supplier Invista to acquire the latter’s apparel and advanced textiles business, including its famous LYCRA Lycra fabric business. Lycra is the spandex fiber with the best reputation, the strongest technology and the largest market share. It is the creator of man-made fibers and the creator of special fibers. The transaction totaled approximately US$2.4 billion and was the only approved merger and acquisition of a high-tech company during the early Sino-US “trade war”.
In addition, in early March, Swiss luxury brand Bally said that the US$600 million acquisition fee required to acquire Bally by Shandong Ruyi in 2018 has not yet been paid. In November 2017, Shandong Ruyi announced that it would acquire 54% of the shares of Israeli men’s clothing group Bagir for US$16.5 million, becoming the latter’s largest shareholder. At that time, Bagir said that part of the investment would be used to expand the production lines of suit pants and jackets at the Ethiopian manufacturing base. However, in April this year, Bagir proposed that Shandong Ruyi had not been able to pay the acquisition payment on time, resulting in the acquisition transaction not being completed as scheduled. The company was seeking external capital injection and was also seeking legal consultation on options including bankruptcy.
On March 24, the international credit rating agency Moody’s Investor Service (hereinafter referred to as Moody’s) once again lowered the credit rating of Shandong Ruyi’s corporate family to “Caa3 , and maintained the rating outlook as “negative”.
Shandong Ruyi, which is strapped for funds, now seems to be facing a more severe test under the impact of the epidemic. Due to financial constraints, Ruyi Group has already Went to court many times.
(Data map: On July 29, 2010, Ruyi Group acquired the Japanese company Renown and became the company’s largest shareholder , and at the same time became the first Chinese company in China to acquire a company listed on the Japanese main board.)
A few days ago, the first quarter report of 2020 released by Ruyi Group, a listed company under Shandong Ruyi, showed that the company achieved business Revenue was 159 million yuan, down 40.03% from the same period last year. Net profit attributable to shareholders of listed companies was 7.81 million yuan, down 22.78% year-on-year. If recurring profits and losses were deducted, the net profit would be a loss of 10.27 million yuan, a year-on-year decrease of 237.67 million yuan. %.
Except for the first quarter, Ruyi Group’s full-year performance last year was not optimistic. The main annual operating results released by Ruyi Group showed that the company achieved operating income of 1.15 billion in 2019 yuan, a year-on-year decrease of 13.39%. The net profit attributable to shareholders of the listed company was 48.16 million yuan, a significant decrease of 51.35% year-on-year. If non-recurring gains and losses are deducted, its net profit was only 16.28 million yuan, and the year-on-year decline was as high as 66.43%.
However, this is not the only one that has gone bankrupt. Since the outbreak of the epidemic, many industry giants around the world have declared bankruptcy. The following is the bankruptcy schedule of some companies:
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