The Growth Of Gucci Has Gradually Normalized.

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The group recently released the fourth quarter and 2018 annual performance report. In the three months ended December 31st, the group's revenue grew 24.5% to 3 billion 800 million euros, of which Gucci organic sales rose 28.1% over the same period.

In 2018, Kai Yun group's revenue rose 26.3% to 13 billion 700 million euros, and net profit rose 49.3% to 2 billion 800 million euros, Gucci income rose 36. to 8 billion 285 million euros compared with the previous year, breaking the mark of 8 billion euros for the first time.

According to the world clothing and shoe net, in 2018, the Saint Laurent revenue of Kai Yun group increased by 18.7% over the same period last year. Bottega Veneta is preparing the new creative director, Daniel Lee in Milan.

For the first time, revenue dropped by 3.4%, and sales of other brands including Balenciaga and Alexander McQueen surged 32.1% over the same period last year.

"2018 is an excellent year for the fashion house of Kai Yun group and group. Once again we occupy the dominant position in the industry," said Fran ois-Henri Pinault, chairman and chief executive officer of Kai Yun group. "After this year's efforts, we have ambitions and ways to maintain profit growth."

From the data point of view, compared with other competitors in the industry, Kai Yun group has indeed increased rapidly.

The French luxury giant LVMH group released its 2018 annual performance report at the end of January. Its sales increased by 10% compared to the same period last year. The growth rate of Kai Yun group was better than that of LVMH.

The Chanel group first announced its earnings in 2018. In 2017, it gained $9 billion 620 million (about 8 billion 500 million euros), an increase of 11.5% over the same period last year, which is also lower than the growth of Kai Yun group.

For industry legend Gucci, the income of 8 billion 285 million euros in 2018 has been equivalent to that of Chanel in 2017, and the income of 10 billion euros in Louis Vuitton 2018 has also been getting closer and closer.

Gucci's chief executive, Marco Bizzarri, set the goal of becoming the world's largest luxury brand in April 2018.

But the growth of Gucci has gradually normalized.

Gucci organic sales had been growing by more than 35% in seven consecutive quarters, while organic sales in Gucci grew 28.1% in the fourth quarter of 2018 and below 35% for the first time in two years.

Rogerio Fujimori, a luxury analyst at Royal Bank of Canada, has said to the interface fashion that Gucci has been growing rapidly for many quarters, and that the gradual normalization of its growth rate is inevitable.

Although Gucci still achieved brilliant results in 2018 and broke through the 8 billion euro mark, it is still on top of the world's hottest brand in the latest fashion search engine Lyst report. However, Gucci's growth has not exceeded expectations. Bloomberg has issued signs that investors have begun to look elsewhere.

Gucci is also facing other troubles recently.

In November 2018, Kai Yun group said it was working with the Italy authorities to solve the case of Gucci's 1 billion euro tax evasion. At that time, Kai Yun group was suspected to have registered Gucci in Italy in Switzerland to reduce its tax payment.

In addition, Gucci has recently fallen into racial controversy.

Some netizens believe that the Balaclava sweater in the Gucci 2018 autumn winter series is suspected of insinuating "2018" (Blackface), that is, the blackening of their faces by whites. This make-up from the nineteenth Century farce has been criticized after the black civil rights movement and is considered to be a very offensive and disrespectful racial discrimination.

For this reason, Gucci has been boycotted by Spike Lee, a famous American African American director, rappers T.I et al.

At present, Gucci has withdrawn the product and apologized, but many netizens do not buy it.

When Gucci is confronted with a tax and public opinion crisis, Kai Yun group will be more anxious because Gucci is already the main source of revenue for the group.

In 2018, Gucci sales accounted for 63% of the total sales of Kai Yun group, and Gucci operating profit accounted for 78% of the group.

Kai Yun group has also spared no effort to develop this group's most profitable brand.

Nowadays, more and more people in the industry have begun to think about whether Gucci can maintain a strong growth momentum, or whether the design of Gucci can still have a lasting attraction for the younger generation, and whether or not the egg is put in the basket of Gucci.

Kai Yun group clearly understands these problems.

According to Bloomberg's report, Kai Yun group is interested in acquiring and merging at reasonable price.

Pinault said that although the company did not want to enter the bidding war and did not need to increase through acquisitions, the group did have the intention to buy and merge.

No one can deny that Gucci is an industry miracle in the past few years, but consumer behavior is changing rapidly, and the recent economic instability and geopolitical risks remain high. In addition to Gucci, which is becoming more and more normalized, Kai Yun group needs to find new growth points as soon as possible.

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