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2017-06
15
Why do senior readymade garments become more difficult to profit in the luxury market?
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On the one hand, fashion has been completely democratized today. Shoppers now have a variety of channels to get the latest fashion at a variety of price points; The brand recognition and identification of luxury clothing is difficult to equate with accessories, so it is difficult to become the identification of social status, which is very important to consumers. 
 
At the same time, the economic climate facing senior garment is not optimistic. The production cost of the fashion series is high, the cost of the fashion distribution is surprisingly high, the full price sales rate is low, the display of the display Nibble retail space, resulting in low sales and profit per square foot. In most cases people talk about making clothing at the brand, and basically talking about how to do it without losing too much money. 
 
Of course, to measure the value of clothing, also to see how it creates a halo for the brand. The strength of the fashion press and the incredible beauty of some garment creation is an important tool to maintain the exclusivity and image of the brand. But what kind of brand aura is the creation of ready-made clothes? 
 
High - end fashion has been the real business of putting on beautiful clothes for the real people. But it's rare today. Many luxury brands have held lavish fashion launches - and then discarded their fashions in style or even want to sell. The focus is no longer those products. 
In fact, many designer fashion brands based on ready-made clothing increasingly find it increasingly difficult to gain a foothold in the core of their core category. Multi - level brand building and franchising business, contributed revenue but diluted brand assets. This constitutes a structural weakness for long-term investors in the luxury industry: the super - brand, embedded in designer fashion, is more vulnerable to losing brand assets than to Super, which are rooted in leather goods or jewelry. 
 
The luxury group of major European listing deals, the risk of clothing sales is limited to a limited extent - clothing or even less. Kering ( Prada ), Prada group, Hermes s account for about 10 %, and LVMH is far lower. Indeed, LVMH has largely distanced itself from the overall " fashion" after several counts of wrongdoing. It is estimated that only brunello cucine, the brand's high-end fashion risk, but the casual ingredient in its brand DNA isolation, avoids competing with most of the competitors.
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