Specialist
Senior executive at LVMH Fashion (Shanghai) Trading Co Ltd
Agenda
- Gucci’s LFL trading outlook in Greater China, including drivers by category and channel
- Competitiveness of product offer and customer experience vs Dior and Hermes
- Distribution shifts in 2021, including online growth outlook
- Gucci’s EBIT margin outlook in China
- Kering M&A opportunities
Questions
1.
How strong was trading on a like-for-like basis for personal luxury goods in Q1 2021, perhaps compared to 2019? Q1 2020 was very poor due to the onset of coronavirus.
2.
What are your best estimations for growth in the personal luxury goods in Q2 and Q3 2021 for mainland China?
3.
What are your best estimates for Gucci’s growth rates in mainland China, firstly in Q1 but also projecting ahead into the later quarters in 2021?
4.
Why is Gucci falling behind the market in China?
5.
As you say, Gucci announced a collaboration with Balenciaga. How attractive is this to the China-based customer?
6.
You mentioned Gucci’s aesthetic and the fashion cycle changing. Is there a shift in preferences in China from less Baroque to a more classic style?
7.
How could Gucci potentially offset this slowdown in momentum, particularly in China? What does Gucci need to do to increase brand heat?
8.
Why might Dior, Hermès or Chanel’s products be more attractive than Gucci’s for the China-based consumer?
9.
What are your rough estimates for online penetration for Gucci in China given your comments around how insignificant the online market is for luxury brands in China?
10.
What online growth are you expecting in 2021-23 relative to total growth, and how does that inform your overall assessment of online penetration levels in China for Gucci?
11.
How would you compare Gucci’s online channel to some of the additional megabrands we have discussed?
12.
How strong is Gucci in beauty and what are the opportunities to grow this category in mainland China?
13.
Alongside the slowdown in top line, there has also been a decline in the operating margin, at least at group level. When are you expecting margins to recover, and even if they will recover, and if you’re not expecting a full recovery, what do you think is a new normal from an operating margin perspective?
14.
How does the online channel impact the operating margin? How do online operating margins compare to in-store?
15.
Do you think Gucci could move away from its third-party model towards the direct online, similar to some of the other megabrands?
16.
What do you think is needed from Kering brand-wise? Is it more soft luxury, hard luxury, a younger brand or a more mature brand?
