Group 1: On and Canadian Goose Performance - On is accelerating its expansion in China with plans to open over 20 new stores in 2024, aiming for direct sales to contribute 10% of total sales [2] - Canadian Goose reported a 7.9% revenue growth in the Greater China region for Q4 of FY2025, with a 15.2% increase in the Asia-Pacific market for the year, driven by effective marketing strategies [3] Group 2: Luxury Brands and Market Challenges - Chanel's net profit plummeted by 28.2% in FY2024, with total sales down 5.3% to $18.7 billion, marking the first decline in revenue and profit since the pandemic [8] - Victoria's Secret initiated a "poison pill" strategy to fend off hostile takeovers, with its stock price dropping over 50% in the year and a 28% decline in net profit for 2024 [12] Group 3: Inditex and Swatch Group Developments - Inditex announced a management reshuffle focusing on financial optimization and ESG strategies, raising concerns about potential impacts on innovation due to a conservative approach [5] - Swatch Group faced a 70% drop in net profit year-on-year, with a 10.94% decline in stock price, as it resisted external capital intervention from activist investor Steven Wood [6] Group 4: Asics and Amer Sports Growth - Asics achieved quarterly revenue exceeding 200 billion yen, with an 18% increase in net profit, driven by high-end running shoes and a 50% surge in sales from its fashion sub-brand [11] - Amer Sports reported a 23% revenue growth in Q1 2025, with the Greater China region becoming a core growth engine, contributing $446 million in revenue [10] Group 5: Market Exits and Strategic Adjustments - Shiseido announced the exit of its "醉象" brand from the Japanese market, citing a 65% drop in sales due to misalignment with local consumer preferences [10] - The luxury market is facing challenges as brands like Chanel and Victoria's Secret struggle with declining sales and shifting consumer behaviors [8][12]

Core Viewpoint - The rise of luxury goods outlet sales in China reflects a shift in consumer behavior and brand strategies, with many luxury brands increasingly engaging in discount sales to manage inventory and respond to market pressures [4][14][36]. Group 1: Luxury Outlet Sales Dynamics - Luxury brands are discreetly organizing outlet sales, often with significant discounts, to clear inventory while maintaining brand image [4][10]. - Entry to these sales is typically invitation-only, requiring personal information registration, and strict rules are enforced during the events [5][6]. - Brands like Gucci and Tiffany have notably increased the frequency and depth of their discount events, with discounts reaching as low as 10% of original prices [19][20]. Group 2: Market Trends and Consumer Behavior - The discount retail economy is emerging in China, with the discount store market reaching 3.06 billion yuan in 2023, growing at 17.92% year-on-year [16]. - Consumers are becoming more price-sensitive, leading to a decline in the perceived exclusivity of luxury brands [36][40]. - The number of luxury outlet events and the variety of products available have increased significantly over the past two years [14][20]. Group 3: Brand Performance and Strategy - Brands like Gucci have faced significant sales declines, with a reported 23% drop in revenue to 7.65 billion euros in 2024, prompting a reevaluation of their sales strategies [36]. - Some brands, such as Loro Piana, maintain a high-end image by not participating in discount sales in China, opting instead to return unsold goods to their home markets [38][40]. - The challenge for luxury brands lies in balancing the need to maintain exclusivity while also addressing inventory pressures through discount sales [40].