Luxury Brands Compete To Cut Japanese Market Prices

In August 2008, the yen exchange rate for the euro changed from 1 euro to 170 yen, and by the end of 2008, it had risen to 1 yen for 120 yen; the exchange rate against the US dollar also changed from 1 yen to 120 yen to 1 dollars to 90 yen.

Generally speaking, the appreciation of Japanese yen is unfavorable to Japanese clothing export, but it is a good news for import business. Some enterprises have lowered the retail price of some European imports by the end of 2008.

However, unlike the previous exchange rate movements, the appreciation of the current yen is due to the negative impact of the financial crisis on the real economy of Europe and the United States. Because of the downturn in the Japanese consumer market, the extent to which the price of imported goods can stimulate consumption is unknown.

In September 2008, Italy's luxury brand Ferragamo took the lead in price cuts, triggering a price cut for European luxury brands.

After that, famous brands such as Katia, deffni and CD also announced the reduction of retail prices.

However, most imported clothing brand goods determine the retail price in the Japanese market according to the exchange rate at the time of purchase, usually about half a year or so.

That is to say, the 2008/2009 autumn and winter merchandise sold in the Japanese market is hard to adjust the price according to the current exchange rate.

According to the introduction, the price of JM Weston brand shoes in Japanese stores is about 2 times that of the Paris head office, so the company had to cut the retail price of the Japanese market by 20% in November 10, 2008.

In addition, the appreciation of the euro in recent two years has led to the rising price of imported clothing brands and the loss of customers, which is also an important reason for the recent major brands to lower the retail price of commodities.

In October 2008, the Japanese company decided to reduce the price of luggage in the Japanese market by 10%, the person in charge said: "because there is a time difference between the purchase and sale of goods, it is difficult to determine the retail price according to the current exchange rate.

But even so, it is necessary to adjust the price of some products as much as possible.

From the recent sales figures released by major department stores in Japan, the consumption of clothing, especially fashion, is still in the doldrums.

Therefore, the real intention of cutting prices before the end of the year is to stimulate consumption.

A department store official said that although the price of some popular products was welcomed to some extent by consumers, the price reduction did not achieve the desired effect, which was far from the goal of stimulating consumption.

Starting in January, 2009 spring and summer imported apparel will gradually appear in shops of various formats in Japan.

It can be imagined that the luxury brands that will not take action before the end of 2008 are bound to join the ranks of price cuts, and they may invest more low-priced strategic commodities.

Insiders predict that if the yen's exchange rate for western major currencies remains high at the beginning of 2009, the price of imported clothing will fall by more than 20% in the 2009/2010 market in autumn and winter.

In addition, the company also said: "2009/2010 autumn and winter commodities will reflect changes in the yen exchange rate, using high-grade fabrics that have not been tried before."

Oman believes that in the context of the overall downturn in the fashion market, it is difficult to rely on price cuts to stimulate demand.

In December 2008, Oman reached a conclusion through the exchanges between 2009 spring and summer commodity orders and professional buyers that buyers have special sensitivity to new fabrics and new styles, because new fabrics and new styles are expected to open up new markets.

At the same time, Euro Moda also revised the exchange rate forecast from half a year to half a year 3 times, adjusting the retail price of commodities according to the exchange rate at the end of August, the end of September and the end of November.

As the euro continued to depreciate in the second half of 2008, the entry price of Polka brand was relatively lower. Euro Moda official said: "the decline in the entry price is expected to have a positive impact on developing new customers."

However, the phenomenon of customer churn began in 2007.

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