Claus Dietrich Lahrs Will Become The New Head Of Bottega Veneta.

Last week, Italy

Bottega Veneta in Milan

On its 2017 spring and summer series, and the 50th anniversary celebration of brand establishment, the industry once again attracted the attention of the two largest luxury brands of Kai Yun group.

Yesterday, Kai Yun group announced that Claus Dietrich Lahrs, the former CEO of Hugo Boss, will become the brand new leader.

This is another personnel change in less than two weeks after Kai Yun group. In mid September, Grita Loebsack, the chief executive of the new luxury department of Kai Yun group, announced its departure after less than a year in office.

Grita Loebsack was primarily responsible for other luxury brands other than the three luxury sectors of the group, including Alexander McQueen, Balenciaga, Brioni, Christopher Kane, Stella McCartney and Tomas Maier.

The chairman and CEO Fran ois-Henri Pinault of Kai Yun group confirmed to the media that Claus Dietrich Lahrs was the chief executive officer of Bottega Veneta. He said: "the rich management experience and extensive connections of Lahrs can lead the development of Bottega in the special period of luxury industry."

Some analysts say this means that Bottega Veneta's performance is far from the target of the group. Changing CEO may be one of the ways to save it.

It is reported that the current brand CEO Carlo Arberto will be pferred to the group's new customer chief marketing officer position, and the appointment will come into force in October 4th.

Claus Dietrich Lahrs joined Hugo Boss as CEO in 2008. Under his leadership, Hugo Boss doubled revenue in the short term, and its profits grew rapidly.

However, in recent years, Hugo Boss has not escaped the doom of the luxury retail industry. Due to weak sales in China and the United States, the brand is expected to double digit decline this year and share prices also fell to its lowest level in five years. The company expects 2017 sales growth and operating profit to continue to slow down.

In February 29th of this year, Claus Dietrich Lahrs officially announced its departure.

The picture shows a store in Bottega Veneta.

Compared with Gucci, revenue grew by 7% over the same period, and Yves Saint Laurent revenue increased by 23.7% in the first half of the year. Bottega Veneta became the only luxury brand of Kai Yun group.

Root data, Bottega Veneta2016 revenue in the first half of last year fell 9.2% to 571 million euros compared with last year, of which second quarter decline failed to brake, the decline was significantly higher than the first quarter.

The development of the brand in Europe is seriously affected by the decrease of tourists. The retail sales of direct outlets are down 21.8%, France.

The revenue of Direct stores decreased by 50%, while the retail sales of Japanese outlets in the Japanese market dropped by 13.2% in the first half of the year due to the decrease in Chinese tourists. Moreover, the operation of the brand in Hongkong was also worrying.

However, at the beginning of this year, group CEO Fran ois-Henri Pinault said that the goal of Bottega Veneta is to enter the 2 billion euro club, which is based on the long-term potential of the brand and is not far away.

Some analysts say that in order to save the performance of Bottega Veneta, Kai Yun group is adopting the replication Gucci mode, which is to introduce strong and experienced CEO. The CEO Marco Bizzarri of Gucci has been the leader of Bottega Veneta. In early 2015, it began to take over the Gucci, then implemented the design reform, and promoted the designer as the creative director, ending the sales decline of the brand for two consecutive years. The brand growth rate is expected to exceed two times the average level of the luxury market this year.

Claus Dietrich Lahrs joins Bottega Veneta to restore brand growth. The fashion industry is looking forward to it. But investors seem to be reluctant to buy it. After the news came to a close, the shares of the group fell 1.17% to 177.40 euros per share, and the current market value is about 22 billion 402 million euros.