Auckland's luxury fashion brands revenue plummeted in 2016, but have seen significant growth already for the start of the year.
High fashion brands including Prada, Gucci, Christian Dior and Chanel all faced a financial decline in their stores located in Auckland’s Centrals Business District (CDB).
Prada saw sales decline six percent in the financial year ending in June 2016, sales of leather goods (i.e. handbags), the company's largest category, were down 10 percent.
The usual foot traffic is a large part of the customers that come into their stores. And the less than perfect summer has been blamed for part of the drop in sales.
Prada says it's been hurt by pricing differentials, stock market volatility and low foot traffic at stores in the region, all contributing to a 16 percent decline in sales.
But already for the start of 2017, sales in Prada leather goods has increased by six percent in its Auckland based store. And the brand say its looking forward to a good financial year ending in June 2017.
Gucci, owned by French luxury group Kering had also seen sales decline in recent years as consumers shunned mega-brands in favor of niche products.
But Gucci sales rebounded more than 20 percent in the fourth quarter of 2016 with the help of new products and is expected to keep growing into 2017.
Christian Dior had the most impressive increase in sales, up 8 percent from the previous year, but still saw a three percent drop in sales across the region.
Bernard Arnault, Christian Dior’s Head Chairman, stated Numerous factors of uncertainty have continued to prevail at the end of 2016.
“The next fiscal year will feature many new product launches and promising developments. The brand will also continue to reinforce and revisit its timeless product lines. Quality improvements in its retail network will continue, with the constant aim of offering customers a unique experience and unparalleled service.” Says Arnault.