Is It Right Or Wrong?

In recent years, the luxury market in China has been neglected. In the Chinese area, because of the stereotypes of the consumers' stereotypes of the brand, it is not always possible to make changes.

The expansion of the company in China and the low price promotion strategy mentioned earlier can be regarded as bringing the company together.

Flow to achieve an adequate reserve for overseas brand pformation.

In recent years, the environment for the development of luxury goods in China is not very prosperous.

Bain's Research Report on China's luxury goods market in 2015 (hereinafter referred to as the "report") found that in 2015, China's luxury goods market declined about 2%, and the market size dropped to about 113 billion yuan.

At the same time, store sales and passenger volume continued to decline, new brands have also encountered similar situations, many luxury brands have emerged from the shop.

Against this background, however, the company still plans to expand its stores in the Chinese market.

The industry has pointed out that the action or the blind expansion of the company in China.

Despite the fact that sales of coke and other indicators are getting warmer, the gross profit and net profit index of the company still shows a downward trend from the third financial quarter report.

By non GAAP and

Based on the reporting basis, the gross profit margin of the company was 69%, compared with 71.6% in the same period last year.

The operating profit margin was 14.7%, compared with 15.8% in the same period last year.

On the basis of financial reporting, business income was $134 million, compared with $124 million in the same period last year.

The operating profit margin was 13%, compared with 13.3% in the same period last year.

According to the company's earnings report, apart from discounted sales promotion, the company has further consolidated its financial results by reducing its labor costs.

The corresponding labor costs have also declined to varying degrees.

At the same time, Cox group also proposed the "operational efficiency enhancement plan" to enhance organizational efficiency, update core technology platform and optimize supply chain network, so as to effectively cope with the rapidly changing global market situation, fluctuating tourism consumption flow and increasingly fierce competition environment.

The plan to reduce corporate jobs in the global market will generate about 65 million ~8000 million pre tax expenses, which will be reflected in the financial statements from the fourth quarter and are expected to be completed in the end of 2017 fiscal year.

In the earnings report, the group did not disclose the size of the layoffs.

Despite this, many of the luxury brands have been dismantling in the high-end business in China.

Jan Bozek, President and chief executive officer of the Greater China region, said that in view of the good performance of the mainland market, the company plans to add 10~15 stores in China in fiscal year 2016 and continue to invest in the renovation of its existing stores. It is estimated that the Chinese market will sell for up to 600 million dollars in that year.

In the eyes of industry observers, this is another sign of "blind expansion".

It is understood that, as at March 26, 2016,

There are 161 stores in mainland China, including more than 40 modern luxury retail concept stores.

By the end of fiscal year 2016 (end of June 2016), the company expects to have about 400 new retail outlets around the world. "At the same time, we expect that about 40% of Chinese market stores will be presented to consumers with new and modern luxury concept stores".