Richemont represented by Richemont group layoffs hard to pull performance decline is often difficult to save themselves

Richemont layoffs in order to pull performance decline Trapped in the sharp decline in performance, with Vacheron Constantin, Cartier, Mont Blanc and many other brands of Richemont, the recent high-level exchange of blood, substantial layoffs and other issues frequently. By the end of November, Richemont Group announced the launch of Vacheron Constantin, Earl two major job cuts of 200-250 positions in the brand's plan, followed by staff protests. In fact, as early as May this year, Richemont in order to save the declining performance, once on its Cartier, Earl and Vacheron Constantin watch brand three significant slash 300 jobs. According to Richemont's latest earnings report, the Group's profit for the first six months ended Sept. 30 was 540 million euros, a 51% drop from the previous year . Its sales were down 5.0% to 12.9% . Among them, Cartier's sales of high-end watches in mainland China dropped by about 60%, causing random high-level turmoil in the Richemont Group. Multi-brand large-scale layoffs Dissatisfied with the massive layoffs plan, Richemont's 150 employees recently launched a protest near Vacheron Constantin and the Earl of the two major brand headquarters. On November 14, Richemont, which owns luxury labels like Piaget, IWC, Vacheron Constantin and Cartier, said it has laid off about 250 jobs in Switzerland. Earl and Vacheron Constantin will be the most affected by the layoffs. According to the latest news by Reuters, unions and Richemont reached a definitive agreement to cut their posts by "drastic reduction" compared with the original plan, but the figures were not disclosed. In the first half of this year, Richemont has conducted a large-scale layoffs. Richemont cut its original planned layoffs to 300 to 100, the largest layoffs in Cartier, a total of 70 positions to be cut, the remaining 30 positions in the count and Vacheron Constantin reduction, in addition to some positions reduced by early retirement, voluntarily leaving , Internal transfer and other means to achieve. Relevant information shows that in 2016 Richemont Group will reduce the number of jobs in more than 500 positions, accounting for 5.9% of the total number of 8500 employees in Switzerland . It is reported that, in addition to the bottom layoffs to reduce spending, the peak of the calendar is also changing. It is reported that Richemont Group CFO and chief executive officer will retire in 2017. Recently the group announced that Montblanc CEO will be April 1, 2017 to become the group's business executives. In addition, due to the decline in Cartier's performance year after year, executives quit consecutively. Last year, Cartier's chief executive officer, international retail director and executives successively switched to other luxury goods companies, triggering a series of top-level personnel changes in Cartier. Recently, Richemont Group said the reorganization of the senior management of the hierarchy structure, there will be no chief executive officer, the majority shareholder Johann Rupert will serve as executive chairman of each brand and department leaders directly report to the board of directors, thus strengthening the Group to cope with market changes Ability. Difficult to sustain the downturn in performance Continuous decline in Richemont layoffs caused by continuous layoffs, due to the global economic weakness, especially in China and the United States shrinking watch and jewelery market, as well as the impact of terrorist attacks on European tourism consumption, Richemont Group's main Business watches and jewelry have been hit hard. According to the November Richemont Group earnings report showed that as of September 30 the first 6 months, Richemont Group profit of 540 million euros, down 51% year on year , its sales plunged to 5.09 billion euros, a drop of 12.6% . Sales of luxury watches, including Vacheron Constantin, IWC, Panerai and Earl, plunged 17% in the first half of the year . In addition, watch sales of the Group's jewelry brand dropped 13% . In September, Richemont Group issued a profit warning, said Group profits fell 45% in the first half of this year , of which Cartier performance is poor. In fact, Cartier's performance has slowed down since 2014; from 2015, the declining performance of Cartier has started to drag on the group. In early 2015, Richemont reported its third-quarter results for FY2014, showing that the Group's third-quarter sales growth was slowed by the performance of the Group's core business, Cartier Watch, which was the worst performing for the past six years. At the end of 2015, Cartier's sales of high-end watches in Mainland China had dropped by about 60% from its peak in 2012. Fortune Quality Institute data show that Richemont sales in 2015 was 104.1 billion euros, an increase of 4%, up 5 percentage points from 2014. In 2015, Richemont reached the highest profit level for 2.67 billion euros. However, the downturn in sales in Hong Kong and Macao, watch category decline seriously, in 2015 sales of only 4.1 billion euros. It is noteworthy that Richemont's profit growth rate has been declining since 2011, from 80% to 10% in 2015 . Action is still hard to save frequently In order to promote the development of the Chinese market, Richemont Group made a lot of moves in the Mainland this year. In July, Cartier released a new generation of star Luhan for its commercials, and announced Lu Han as its brand friend. In December, Richemont's watch brand Jaeger-LeCoultre released a co-operative advertisement with Red Papi Paste. However, this does not seem to have a positive impact on the Richemont group, but the cooperation with the papi sauce has caused widespread criticism of the product decision. Prior to this, Cartier cooperation partner for Andy Lau, and Jaeger-LeCoultre brand friend Zhao Wei. Insiders said the calendar peak of the cooperation between the star and the difference between the larger, it can be said, Luhan and papi sauce and the two brands consistent brand positioning does not match. The intention of the brand to be close to young consumers in China is obvious, but its product positioning and pricing are not in line with the younger groups driven by Lu Han and papi sauce. Zhou Ting, president of Fortune Quality Research Institute, believes that Richemont Group is currently in the process of self-revolution. She suggested that the Group should strengthen the actual control over its brands, strengthen the unified management of the headquarters to the region, especially the markets and channels, and promote the retail channels The overall e-commerce, to enhance online service capabilities, and with high-quality source third-party platform to achieve cooperation; media promotion to intervene to break the tradition of market communication through public relations companies, the direct face of C-side precision marketing. At the same time, Zhou Ting said Richemont Group should establish a global service system. This article is reproduced, does not represent the world position of million table.