Japan'S Hermes Is Almost Caught In The Pocket Of Chinese Tourists.

With the overall slowdown in the luxury sector,

Contrary to the trend, its recent performance report shows that business revenue in the second quarter increased by 9.7% over the same period, which made Burberry somewhat embarrassed. This luxury brand in the UK has increased its same store sales growth by only 6% in the 3 months ended June 30th, and did not meet analysts' expectations. The chief financial officer, Carol Fairweather, blamed the Asian regional slump on Hongkong's "occupy" incident in the conference call.

And go to Hongkong? Now they are going to Japan to buy luxuries.

Although Hermes has commented on the "dilemma" in the Asia Pacific region (except Japan), revenue in the region has increased by 6%.

Sales in the United States increased by 10.9%, France in the group's base grew by 6.8%, and in other European countries except France, the revenue grew by 10.9%.

The hero who pulled the "overall score" is still a very prominent Japanese market from the first quarter: the second quarter revenue grew by 26.5% year-on-year.

Hermes told analysts that a large number of Chinese consumers recently poured into Japan to buy Hermes products.

Chinese buyers have abandoned the shopping destination at a very fast pace in the past year: Hongkong and Macao, which are moving towards Japan, which is near and low in exchange rate.

HSBC analyst Antoine Belge told the Wall Street journal that Chinese tourists are now more inclined to go to other parts of Asia, especially in Japan.

Japan has a territory equivalent to only one Yunnan Province, but it has 45 Hermes stores.

Hermes has said that Japan has a good performance and its selective distribution network is indispensable.

Public information shows that there are 23 stores in mainland China, 7 in Hongkong, 3 in Macao, and 45 in Japan.

In addition, there are 17 cities in Japan.

Discount shops are a great attraction for mainland tourists.

In an interview with Bloomberg, Luca Solca, chief analyst of luxury goods at Exane BNP Paribas, Paris bank, France, said the Japanese market was "amazing", and local sales growth was 10 percentage points higher than analysts had expected.

However, in his view, the only mistake in the Japanese market is that the price increase of Hermes in the market is not enough to offset the negative impact of the low yen, which is why Hermes has slightly lowered its profit margin in the first half of the year.

Leather goods and saddle are still the most popular products.

By the end of June, sales of leather goods and saddle equipment sector increased significantly, reaching 14%.

To this end, Hermes in June this year in France, Izel (Isre) and coastal shore Charente-Maritime (two) to expand the capacity to expand production.

Thanks to the successful launch of the new fashion, clothing and accessories departments increased by 8% over the same period, of which fashion accessories were particularly prominent; the silk products and textiles sector increased by 5%, thanks to the newly launched Jour d Herms absolu and the Hermes land.

Series (Terre d 'Hermseau TRS frache), perfume sales in the first half of this year increased by 4%.

The watch Department has seen a slight decrease of -1% in the overall downturn of the clock industry.

Hermes's performance in the first half of this year will be officially announced in August 28, 2015.

However, under the influence of the weakening of the euro, the group's forecast profit will drop slightly compared with the first half of 2014.