Bean Dou Shoes Are Not Burning? Tod&#39, S'S Revenue Has Declined For Five Consecutive Quarters.

TOD'S is a famous brand of shoes and bags in Italy. It is famous for its elegant and comfortable TOD'S bean shoes.

The fashion reform of luxury brand Tod 's, known for its "bean shoes", does not seem to have the right rewards.

Now, not only is the lack of product innovation, "

Losing its freshness, other brands in the group did not show a positive trend.

Let's take a look at the world's clothing and shoe net.

According to the latest release of the first quarter results, Tod's Group sales decreased by 4.4% to 235 million 500 thousand euros compared with the same store sales fell 3.2%, mainly by the European and American wholesale channel performance weakness and Hongkong tourism downturn.

The sluggish performance in the first quarter of fiscal year 2017 is equivalent to the Tod s group, which is in decline. The annual earnings report for the 2016 fiscal year, which was released earlier, showed that Tod 's Group sales decreased by 3.2% to 1 billion 4 million euros compared with the same period last year. Tod s Group Chairman and chief executive officer Diego della Valle said that this year's performance will improve, and it seems that the situation is still not optimistic.

In the three months ended March 31st,

The reduction of 5.1% to 192 million euros is still the core business of its shoes, which is the last thing the group and investors want to see.

In addition, sales of leather and accessories Department of Tod's group declined by 1.5% to 32 million 400 thousand euros, while clothing department sales fell 1.6% to 15 million 700 thousand euros.

It is noteworthy that the revenue of group's core brand Tod's has been declining for the five consecutive quarter.

In the first quarter of this year, Tod's sales were the biggest quarterly decline since listing, down 6.7% to 123 million euros.

The group said it was mainly affected by poor performance and time of delivery.

The Tod 's, which has been commercially successful because of a hot sell of single bean products, is now seriously frustrated by the loss of bean Dou shoes.

On the one hand, in the increasingly fashionable fashion industry, the middle class elite style represented by bean shoes is being marginalized.

All brands focused their efforts on the strategy of younger products, with Dior and Gucci the most obvious, while the two also achieved immediate results in performance.

In contrast, Doudou shoes have not followed the trend in recent years to make obvious product innovations. The bean Dou shoes, which have remained unchanged for many years, are easy for consumers to lose their freshness, especially in the dramatic change of consuming habits. Consumers' preferences are changeable and their choices are more varied.

In addition to making changes in material and single color, Doudou shoes have hardly explored more space for style change.

On the other hand, the era of supporting brands by only selling a single product has passed. For the Tod s, which is dominated by accessories, the shortage of hot products is the biggest challenge.

In contrast, Fendi, which has developed strong handbag accessories recently, is a successful example. From the classic style Peekaboo, Fendi has launched a series of popular styles such as Dotcom, By the way and so on. It also sells accessories accessories such as accessories, removable shoulder straps, etc., to meet consumers' individual needs and bring more freshness and attract more young consumers.

The picture is Tod 's Group Chairman and CEO Diego Della Valle.

Some analysts say that it is obvious that if the brand of bean Dou shoes can not be changed any more, the best way is to provide customers with more shopping options and increase their freshness of Tod 's products.

The core business shoe line was frustrated, Tod 's tried to strengthen the garment line, but Alessandra Facchinetti, former creative director of women's clothing, did not bring any improvement to the garment business.

Emilio Macellari, chief financial officer of the group, thinks that the design of Tod 's during the term of Alessandra Facchinetti, the creative director of the original dress designer, is too fashionable for the old customers. It is not fashionable enough for new customers, resulting in the loss of many loyal customers by Tod s.

However, after AlessandraFacchinetti left office, the group decided to return to the brand history and DNA line.

Therefore, Tod 's group is not eager to carry out younger reforms.

In addition to shoes and clothing,

Also tried to strengthen handbag business.

The Double T series handbag launched in spring and summer 2016 caused a certain degree of heat due to the younger design and brought some vitality to handbag business.

However, in the fierce competition of luxury brand handbags, the Double T series ultimately failed to bring obvious performance boost, nor has it become a landmark hot selling style.

But the handbag business and clothing business have not seen the improvement of Tod 's, and again focus on shoe business.

Emilio Macellari's poor performance in the first quarter is due to the fact that the designer team is still in the running in period. It is believed that the spring sale after the Spring Festival is not a regular phenomenon, and that the future will focus on "bean shoes" to make innovations in the design.

However, under the current market trend, the strategy of Tod s's return to brand history brings more uncertainty.

Not only is it contrary to the macro trend of the younger generation of fashion industry, but still has not made a more complete product layout.

When

When the product matrix is widely enriched, this will make Tod 's at a disadvantage in the fierce market competition.

Obviously, it is far from enough to make design innovations for Doudou shoes.

Tod's creative director Alessandra Facchinetti left in May last year.

After the departure of last May, Alessandra Facchinetti, the creative director of the original dress designer, has been in charge for nearly a year without a creative director. This has also brought uncertainty to the brand's development this year.

In addition to Tod 's, other brands in the group also slowed down in the first quarter.

Hogan sales fell 11.5% to 59 million 400 thousand euros in the first quarter, while sales of Fay were basically 14 million 600 thousand euros last year; Roger Vivier was the only brand that recorded sales growth, with an increase of 15.6% to 41 million 300 thousand euros.

It is worth noting that Hogan has also become an important factor in dragging the Tod 's group's performance.

Both Hogan and Tod 's are faced with the problem of not being fashionable in design style.

Emilio Macellari stressed, "Hogan is a pioneer in the popularization of sports shoes."

With the popularity of sports fashion style, the main leisure style Hogan should benefit from the expansion of market volume, but the fact is that the Hogan consumption group is not consistent with the followers of sports fashion trend. The products that are not fashionable are also at a disadvantage in the fierce market competition.

According to fashion headline data, Hogan sales decreased by 3.2% to 214 million 200 thousand euros in the 2016 fiscal year.

Continuing to more than 10% decline this quarter, Hogan's future initiatives will be closely related to the pformation of Tod 's group.

From a regional perspective, Europe and the United States become the Tod s group's worst hit area.

By region, Italy's sales decreased by 8.7% to 79 million 400 thousand euros compared with the previous year, while sales in other parts of Europe decreased by 3% to 57 million 300 thousand euros; sales in the Americas fell 15.7% to 16 million 800 thousand euros; sales in the Greater China region increased 3.6% to 53 million euros, accounting for 1/4 of the group's total income; sales in other regions, including Japan and Korea, dropped by 1% to 34 million 700 thousand euros.

The weakness of wholesale channel in Europe and America is the main reason for the decrease of sales volume.

Especially recently, Messi department store Macy 's, penny J.C.Penney, Nord stern Nordstrom, Sears, Taghit Targe and other department stores are facing serious problems such as continuous shop closing and same store sales decline. The continued downturn in US Department stores will spread more luxury cards.

Last year, Tod s had said that the development center should be pferred back to Italy and other European countries, because the group's performance slowed down in China, the United States and Japan, while Europe remained stable.

However, due to the weakness of wholesale channels, the European market, especially the local market in Italy, is also falling.

The only region that has recorded growth is the Greater China region, which is obviously inconsistent with the previous European strategy.

At the end of the first quarter, Tod's group has 274 Direct stores and 107 stores in the world, and Emilio Macellari, chief financial officer of the group, said it plans to add 13 to 15 stores worldwide this year, while closing some unprofitable stores.

In terms of store operation, the group did say that it would enhance the experience of physical shops, but did not disclose details.

Diego Della Valle, chairman and chief executive, said that Tod 's is building a more perfect team to produce more series each year, and is also adding some "new generation of shops" to provide customers with a new shopping experience.

E-commerce has also entered.

The future development agenda.

"We are strengthening the management team to hire new people to strengthen the communications and digital fields.

We are continuing to strengthen e-commerce, "Della Valle said.

Diego Della Valle and Emilio Macellari believe that the recovery of group performance is only a matter of time. To achieve market expectations, Tod's group has a long way to go. It can not be haste, and it takes time and patience.

However, analysts questioned in the conference call, in the current luxury industry as a whole warmer, Tod's group performance is still declining, it can be seen that this is not just a problem that can be solved by closing poor stores. How to innovate products to attract consumers is the most urgent problem to solve.

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