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    Japanese Luxury Goods Prices Are High And Consumers' Attitude Is Cold.

    2010/8/16 11:05:00 340

    Luxury LV Brand

    The economic situation is not good. Japanese consumers are obviously not enthusiastic about luxury goods, and it is worth noting that the same commodity in Japan is much higher than that in Europe and the United States.


    The price of imported luxury goods in Japan is 50% higher than that in the country of origin, and some even higher than 60%.

    Although imported goods are more expensive than domestic products because of import duties and freight charges, this is a logical thing. But if the price gap is too wide, it will not attract people's attention.


    What's more, online sales are so developed that consumers can see the gap by comparing the price on the brand website or the price of the third party retailers with the price in the domestic market.

    At the same time, the rise of Outlet has also made consumers more sensitive to the price of luxury goods.

    Moreover, Japanese consumers will go shopping in Europe, Paris and Milan on holidays. Even if they go out shopping, they will be cheaper than buying them in Japan.


    McKinsey Co director BrianSalsberg said: "why brands sell in Japan is much more expensive, because it was sold in Japan before, and consumers could accept it.

    At that time, the Japanese market lacked such luxury goods, and the sensitivity of Japanese consumers to quality prices was not strong enough, so that high prices could still be sold.

    But after the financial crisis, Japanese consumers are more cautious about luxury consumption, so this expensive road may not work.


    Katsu Kuwano, a Japanese industry expert, said: "5 to 7 years ago, consumers thought that high prices meant high quality products, so luxury goods occupy such an advantage."


    A medium sized classic picture bag like LV costs $601 in Paris, but it costs 903 dollars in Tokyo.

    Prada oblong Black Leather Wallet Milan sells for $436.

    Japan is going to sell 720 dollars.


    When demand is strong, these high prices seem reasonable, but after the recession, when the Japanese consumers began to wear the fast fashion brands such as H&M and Uniqlo, are these high prices feasible?


    LV and Gucci declined to comment on their high prices, while Prada and Chanel considered their pricing strategies justified.

    They believe that other brands are selling at a high price in Japan, so doing so is just catering to the average market level. Taking into account the exchange rate, tax rate, import tariffs and pportation costs, the total price of Japanese luxury goods is much higher than that of other countries.


    To tell you the truth, Japan's tariffs are really high.

    Different products have different tariffs, and some products even have a tariff of up to 60%.

    The purpose of the government is to protect its national industry.

    Tariffs like clothing are between 10% and 20%.

    In addition, the appreciation of the Japanese yen has also led to a gradual increase in the prices of domestic imports.

    It also makes many Japanese consumers like to go abroad to buy luxury goods. In the first half of this year, the number of Japanese tourists to overseas travel increased by 10.8%, many of which went abroad to buy clothes.


     

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