Kering: Revenue to 7,6 billion euros, +18,8 %

20190324_1538516782124581227451604.jpgThe French luxury group Kering (KER) announced its half year figures, which showed the revenue growth of 18,8 % to 7,6 billion euros. Sales in Asia-Pacific area rose 21 %, in Japan 10%, in Western Europe +14,8 % and in North America +7,3 %.

The sales of the Gucci brand was nearly 20 % reaching to 4,6 billion euros during the first six months 2019. The sales of Yves Saint Laurent rose 20,4 % to 973 million euros and Bottega Venetta´s sales decreased 0, 6 % to 549 million euros. Others, which include also jewellery, rose 23 % to 1,2 billion euros. Online-sales rose 16 %.

According to Kering press release, the gross margin was 5,6 billion euros in the group and ebitda rose 19,6 % to 2,8 billion euros.

The company’s share price declined 2,04 % to 508,90 euros in Paris today. The market cap of the Kering Group is 64,2 billion euros.

Business Finance

Hublot CEO: China markets the main focus (updated)

Hublot, one of the leading luxury watch makers in Switzerland, is targeting China markets even more. The company, part of the LVMH (LVMH) Group, market cap 186 billion euros, and its Watch division, said the same thing already a year ago, but the target is still the same. According to the CEO Ricardo Guadalupe, Hublot is aiming to become one of the leading watch brands in China and Greater China.

– We are focusing on China and Greater China markets. Our aim is to be one of the leading watch brands in China and Greater China, Mr Guadalupe said in the ComteamPUB+ interview on Thursday.

The company has not revealed the export figures, but according to Swiss Watch Industry information the China, Hong Kong and Singapore markets totalled nearly 30 % of the overall Swiss watch exports. In May the export totalled over 2 billion Swiss francs, growth 11,4 %. The biggest growth was in the premium & luxury watches, which are priced over 3000 francs.

The company is expecting a very strong growth for this year. The double-digit growth is said to continue “over the end of the year” according to Mr Guadalupe.

China is seen one of the fastest growing luxury markets in the future. In 2018 the Chinese consumers spent about 115 billion dollars on luxury items, which is one third of the global spending. And this is expected to growth in the future also so that by 2025 40 % of the world’s spending on luxury goods would be by Chinese consumers (McKinsey). So, it is not a surprise that Mr Guadalupe is talking about China.

Is luxury becoming more common?

This question is about the luxury spending and how the luxury markets are expected to develop in the future. But Mr Guadalupe has a point.

-Absolutely not for the real luxury, he says.

And he is referring for the real thing. Real luxury has always its prestige and value among its users. And this is also part of the demand for the vintage or retro luxury items in the markets at the moment.

For example financial markets are expecting the US company RealReal to be listed in New York. The company is an online marketplace for luxury products and according to the company info the trading of the shares are expected to start today, not yesterday as earlier estimated. The company raised 300 million dollars, at 20 dollars each, above the 17-19 dollars range earlier estimated. Sustainable, circular luxury is also entering the main markets.

Hublot and “Art of Fusion”

The clear sustainable standing point for Hublot is the materials. The company has been innovative and finding new ways to integrate different materials in the watch production over years. It is part of the company ideology of the Art of Fusion – the way the tradition of high-quality Swiss craftsmanship and innovation can be combined.

The material lists include magic gold, carbon, rubber, aluminium, ceramic, king gold, palladium, platinum, stainless steel, tantalum, titanium, tungsten, zirconium, osmium and aluminium. Hublot can say that it has clearly been the innovator in this area in the Swiss watch industry.

The company says that it is now also working with sustainable bags while the banning of plastic bags is already a trend in Europe.

Collaboration with Ferrari and FIFA

– The collaboration with Ferrari and our involvement in FIFA World Cup are our two main partnerships, Guadalupe says.

– This year we have two collaborations with Ferrari. The Classic Fusion Ferrari GT, which is an elegant and contemporary piece that draws inspiration from the “Gran Turismo” universe. And the Big Band Scuderia Ferrari 90 ans. This is a model that reflects the rich history and heritage of Scuderia Ferrari, he continues.

Japanese food and sea

But what does Mr Guadalupe do for the summer time? Japanese food and sea.

– Food can be compared to the watch industry in a certain way for their attention to quality, time and details. I like to spend my holidays in the Mediterranean, at Mykonos or Ibiza. Holidays is for me synonymous with relaxing, sport and good food, he concludes.

Hublot, which was founded in Switzerland in 1980, has made the journey with innovation and unique products. Watches like Big Bang have paved the way to new flagship collections like Classic Fusion and Spirit of Big Bang.

Picture: Hublot classic watches from BaselWorld 2017-2019

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Swiss Watch export value nearly 1,8 billion francs in April

The Swiss Watch export was totally 1775 million francs in April. According to Federation of Swiss Watch Industry the main export countries (HongKong, USA, Japan, China, Singapore and Germany) totalled 932 million francs, up 6,2 %.

– All segments below 3,000 francs (export price) saw steep declines. The reduction in the number of timepieces priced below 200 francs was -23.6%. Watches priced over 3,000 francs remained positive, helping to stabilise the trend in export turnover, the organisation stated in the press release.

The export countries were mixed during the period, while the strongest growth was in the US (+16,8%), Japan (21,2%) and Singapore (18,8%).

– The situation in Europe (-4.3%) was more mixed, with the United Kingdom (+7.2%) exerting less influence on the figures than during the first quarter, according to the press release.

Business Finance

Luxury gift ideas for the Season

Spring season is always the start of the festivity season. Here we have selected some of the best luxury gift ideas for your loved ones for this Mother’s Day and beyond.

The Italian high-design jewellery from Utopia include diamonds, SouthSea Pearls and 18 carat gold in the earrings. The new designed, but still classic, heritage style luxury watch from the Swiss company Carl F.Bucherer, has long traditions. According to company they have limited the production to 888 pieces to celebrate the founding year of the Lucerne company in 1888. The strap is cognac brown calfskin.

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This pearl necklace is made from natural SouthSea Pearls and according to the company these jewelleries are natural products, with no artificial treatment (www.utopia.com).

 

 

 

Design Lifestyle

Utopia: Trendy and modern pearls

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The Italian design-company Gemmindustria Gaia Srl has created comtemporary pearls jewelleries for ladies. This Italian design is manufactured with high-quality and best natural resources.

 

According to Anna Gaia, director in the family company, they have years of experience of the pearls and how to make the best of this natural gem that is unique and as natural as in the sea. The company imports the pearls from the South Sea, North Australian Coast and also from the French Polyneasea.

-It takes about two pears for the pearl to grow in the oyster. And for the Tahiti pearls the time is little less, about 1,5 years. You know, it is good to remember, that pearls are the only natural gem, that is not manufactured later one. We only wash them when we include them in the jewellery, she says.

The Italian company, now at its 3.generation, has about 20 employees in the Milan office and the turnover is about 8-10 million euros. The majority of its jewelleries are exported to Russia.

-Pearls are becomming trendy because of the fashion trends and pearls are also timeless. We are also expanding our business to China, while the Asian heritage is known for its jewelleries and pearls, she continues.

The company brand Utopia has several collections, some are more classical design and some more for comtemporary, daily use. One of the BaselWorld new designs is the collection called Miro, which includes also ancient & brilliant cut diamonds. It is part of the art deco and trendy collection.

Lifestyle

LVMH: Hublot´s sale 250 million watches during the fairs

Jean-Claude Biver, the President of the LVMH´s Watch Division, estimates that  Hublot will sell 250 million watches during the BaselWorld fairs. The event, which is seven days long started on the 21st and they will end next week Tuesday. Biver commented the fairs in the interview in the Basler Zeitung on Saturday.

The event is important for watch manufacturers for two reasons as Biver says: ” Naturally we would like to make turnover, but the direct contact with the customer is also important – and that is why the BaselWorld is a double win for us.”

There has been speculation about the future concept of the BaselWorld after the Swiss Group Swatch decided not to take part in the event. According to Biver, the LVMH Group, which includes watch brands Hublot, Tag Heuer  Bvlgari and Zenith,  has given time to the fairs and their decision to take part in the next year event will be decided next week.

He also critiseses the decision to integrate the Genf Salon de la Haute Horlogerie and Baselworld. According to the decision the two events would both be in April next year, when the Genf event has always been in January.  Biver says that he would like to see both events to take place in January in order to have the full potential of  a calendar year.

 

 

Lifestyle

Hublot to present new Ferrari watch in Basel

Hublot, part of the French LVMH (LVMH) Group,  presented several exceptional new timepieces at Baselworld 2019, including the new Ferrari watch.

– Continuing its long collaboration with Ferrari, Hublot also unveiled the Classic Fusion Ferrari GT, a watch, whose innovative design integrates the new Unico manufacture movement and the dynamic lines of Gran Turismo very high-performance luxury cars, the company says.

According to Hublot this collaboration has also for the first time enabled Hublot teams to fuse their skills with those of the “Centro Stilé Ferrari” design center. This was one fo the new moments with creating new bridges between watchmaking motorization and automotive design.

 

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