Glasses merchant Xia Feinuo was frequently broken up by big brands, and it was difficult to find a good performance pres
Glasses merchant Xia Feinuo was frequently broken up by big brands, and it was difficult to find a good performance prescription and fell into an embarrassment
Affected by the continuous decline in the group's revenue,
Shares of Safilo Group, the world's second-largest eyewear manufacturer, fell another 7.5%
The market capitalization is only 400 million euros.
Due to the growing popularity of the high-end eyewear market in the luxury industry,
International luxury goods groups have successively recycled the agency rights of high-end eyewear brands and transferred them to self-operation.
This has made Safilo, which has long relied on the sale of luxury glasses, fall into the dilemma of "being divorced".
The performance has also been declining.
In addition to the rumors of LVMH's stake in Marcolin in January, which caused the share price of Safilo to fall again,
As early as 2014, when Kering Group took back the agency of Gucci eyewear in a high-profile manner,
Safino fell into the haze of being abandoned by the big names of the partners.
According to the analysis of industry insiders, Xiafeinuo is difficult to guarantee income and weak performance.
The core agency business has been lost one after another, and the group is facing an increasingly severe development crisis in the high-end eyewear industry.
The Italian eyewear manufacturer Safilo Group, which lost its big-name agency rights, announced its preliminary results for 2016 on January 31, showing that
Group sales in 2016 fell by 2% to €1,252.8 million, down 1.2% at constant exchange rates.
At the same time, Safilno's poor revenue caused the group's share price to fall by 7.5% again.
The market capitalization fell to 400 million euros.
It is understood that the share price of Safilo has plummeted by 20% as of today in 2017.
In addition to the impact of the group's revenue, the luxury group has successively recovered the agency rights of luxury glasses.
It has also become one of the reasons why Safilo's share price has suffered successive setbacks in recent years.
During the Spring Festival, LVMH, the world's largest luxury group, was rumored to take a 50 million euro stake in Marcolin SpA, another Italian eyewear manufacturer.
It is planned to seek autonomy in the high-end eyewear industry through in-depth cooperation.
LVMH is the largest customer of Safilo eyewear agency business,
The news had a direct negative impact on Safilo, causing its share price to plunge 21%.
As early as 2014, Kering, another luxury goods giant, had unilaterally announced that
Two years ahead of schedule, it took back the eyewear agency of its first-line luxury brand Gucci and turned it into its own operation
And at the end of 2016, the cooperation was officially ended.
On the day the news was announced, Safilo's share price plunged 30%.
Safilo CEO Luisa Delgado told Beijing Business Daily,
Although the Group has ended its partnership with Gucci, Safilo will continue to produce some of Gucci's products for the next four years.
The withdrawal of agency rights by luxury brands does not mean that the cooperation is terminated.
Both parties can find new points of cooperation based on previous cooperation.
Relevant information shows that Safilo's own brands account for only 23%,
Agent brands account for 77%.
However, with the focus of luxury brands on the eyewear business, many brands have terminated their partnerships with Safilo.
These include Bottega Veneta, Yves Saint Laurent, Alexandre McQueen, Balenciaga, etc., which are part of Kering.
LVMH brands such as Dior, Fendi, Givenchy, Céline and Marc Jacob have also said that they will not renew their contracts with Safilo after the expiration of their contracts.
It is reported that the 2016 annual performance of Safilo continued to decline as a whole.
Excludes the group that has discontinued the business of the agent and is denominated in euros
Its sales revenue increased by 3.6%.
According to the data of the third quarter of 2016, the overall net sales revenue of Safilo was 939 million euros.
This represents a decrease of 2.2% from the same period last year.
Among them, the net sales revenue in the Asia-Pacific region was 90.1 million euros, a year-on-year plunge of 20.2%,
Directly reducing the proportion of the Asia-Pacific region in the Group's total net sales revenue.
Industry insiders pointed out that Safilo's "agency" business model bundles most of its business with other luxury brands.
Luxury conglomerates, which now own a large number of independent brands, are gradually withdrawing their representation rights
At the same time, the mergers and acquisitions of first-line groups in the luxury industry are frequent, and the survival situation of Safino is becoming more and more embarrassing.
The group's performance has been difficult to break the weak predicament.
Safilo has developed a strategic sales plan for 2020, with sales expected to reach EUR 1.6 billion in 2020.
Safilo's sales revenue in 2016 was nearly 1.2 billion euros, and in recent years, the industry environment has slowed down, the performance has not decreased, and the loss of eyewear agency rights has been unfavorable.
It will be difficult for the group to achieve an increase of 400 million euros in four years.
The performance prescription is hard to findWith the development of luxury goods grouping and scale,
Luxury brands want to further control product image, production links, channel resources, and improve their sensitivity to end consumption
Only through self-operation can we control costs and profits in all industrial chains.
The eyewear business is a low-cost, high-profit, and high-volume industry.
Luxury groups will naturally choose glasses, which are relatively low unit price entry categories.
Seek new profit growth points.
As a victim of the upgrading of the luxury industry, Safilo also had to quickly adjust its strategy.
Look for new profit growth points.
In fact, in the changing environment of the luxury glasses market, Safilo has said that it will increase the proportion of its own brands and strengthen brand management.
Actively look for high-quality cooperative brands and make investments or acquisitions to resist the business crisis of luxury brands recovering agency rights and changing them to self-operated.
Zhou Ting, president of the Fortune Quality Research Institute, said that the loss of the luxury glasses agency brand of Safino is difficult to calm down in the short term.
In the long run, Safilo's "agency" business model is not in line with the development trend of the luxury market, which is the fundamental reason for its "sunset".
Safilo's best business model should be to choose high-end glasses customization,
Get rid of too much dependence on luxury groups to achieve diversification and personalized development,
Transform production capacity into C-end service capabilities, and if Safilo can transform the big-name effect of the agent into its own service brand advantage,
And reshape the retail channel, the group's performance recovery is possible.
This article is from Sina Finance, slightly modified,
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