Christian Louboutin Is In A Tight Position For The First Time In 3 Years.

Despite its high recognition rate, Christian Louboutin, known for its red shoes, is in trouble.

According to the report submitted by Christian Louboutin to the relevant British institutions, its sales fell 4.8% to 50 million 200 thousand pounds in the fiscal year ended August 31, 2018, gross profit was 20 million 730 thousand pounds, gross profit margin rose to 41%, and pre tax profit increased by 9% only 1 million 200 thousand pounds.

It is noteworthy that this is the first decline in revenue of Christian Louboutin in the past 3 years. In 2017, the sales of the brand did not increase, and in 2016 it recorded an increase of nearly 19%. Christian Louboutin said that the decline in revenue last year was mainly affected by the uncertainty caused by Britain's departure from Europe, but expressed optimism about its future prospects.

Christian Louboutin, who once worked in Roger Vivier, founded the shoe brand of the same name in 1992. When he was worried about brand identification, he suddenly saw his employees painted red nail polish and painted red shoes of a pair of high-heeled shoes. Later, he gradually developed into the most recognizable element of the brand, and was sought after by celebrity celebrities such as Lady Gaga, Sarah Jessica Parker, Angelina Jolie, Parker and so on.

After gaining market recognition, Christian Louboutin simply passed its iconic red as a bridge, widened its brand business, launched handbags and accessories, and then formally entered the field of beauty makeup in 2014. In order to continue the high-end positioning, Christian Louboutin's nail polish series is priced at $50, which has attracted the attention of the industry. A year later, the Christian Louboutin cosmetics camp launched a new product. Its lipstick, similar to its "Red Shoe" heel, sold for about $90, about 559 yuan, and nearly three times that of Chanel.

Last year, Christian Louboutin and the Spanish beauty giant Puig signed the global cosmetic licensing agreement, which is responsible for the design, development and distribution of its beauty product line. Its products range from nail polish, lipstick, eye makeup and perfume to high-end market.

Alexis Mourot, the brand's chief executive, said that with the growing demand for high-end cosmetics in emerging markets such as China and Spain, cooperation with Puig group will help brands build a wider distribution network.

However, Christian Louboutin feels the "Red Shoe" particularity and reputation, but also suffers from counterfeit products. Because the law does not specify whether the color is in line with the trademark protection law, whether it is Zara fast fashion or luxury brand Saint Laurent, it has "borrowed" this feature to design shoes, which will damage the Christian Louboutin brand image and make the brand determined to apply for patent extension protection in the world.

In April 7, 2011, Christian Louboutin filed a lawsuit against a federal court in Manhattan, New York, to prosecute the plagiarism of Saint Laurent, a luxury brand of Kai Yun group, asking the brand to stop infringement and claim millions of dollars. In 2012, the federal appeals court of New York reconsidered the case and reconfirmed the legitimacy of "Red Shoe" as a trademark. In 2016, the Swiss Confederation Administrative Tribunal rejected the application of Christian Louboutin and refused to list its "Red Shoe" as a trademark protected commodity.

In 2018, Christian Louboutin's road to rights protection finally won a stage victory. First, in May, the Paris High Court ruled that the patent rights of its "red shoes" were awarded. 1 months later, the trademark was finally recognized by the Supreme Court of the European Union. The court said that the trademark jointly constituted by red and shoe shaped was protected by EU law to a certain extent.

In February this year, the Hague District Court decided that the Christian Louboutin "Red Shoe" trademark was valid, and thought that Holland fashion retailer Van Haren infringed the trademark patent, demanded that Van Haren immediately stop selling its Fifth Avenue by Halle Berry series red shoes, and pay the compensation and litigation costs to the by.

In order to further jump out of the "Red Shoe" imprisonment, Christian Louboutin plans to conform to the trend of the luxury industry and begin to move towards the high-end experience. It will open a hotel in Portugal's Alentejo and be led by the architect Madalena Caiado, so that the hotel can integrate itself with the surrounding local buildings and embody the taste of Christian Louboutin itself.

It is reported that the hotel started construction in April this year, and can be opened in the summer of 2020, with restaurants and 21 rooms. Christian Louboutin himself revealed that he was buying furniture and ceramics for the hotel to better explain his favorite lifestyle.

Nowadays, consumers will immediately associate Christian Louboutin with the high heels with red shoes, but the market trend is changing. Just as the position of high-heeled shoes in the hearts of female consumers has been replaced by more comfortable sports shoes, the performance of Christian Louboutin sideline will still face great challenges.