Fashion Theory: Delve Into The Price Difference Of Luxury Goods

In Chinese Society

However, as foreign exchanges become more and more convenient and information becomes more and more pparent, there is a phenomenon that cannot be ignored. Many times, Chinese people have to spend more than 20% to 30% of their prices on the same products than Europeans and Europeans.

At the end of 2008, a friend of mine bought a new GallieraPM for his mother at the LV store in Losangeles, which was converted to RMB 9000 yuan after tax, while the same package sold for about 12000 yuan in China and more than 30%.

Even in Hongkong, the difference between the mainland and the mainland is equally significant.

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Such a price increase exists not only in luxury goods, but even in general products, such as VEROMODA, GUESS, Adidas, NIKE and other brands, there are different price differences in the overseas market and the Chinese market.

In the US, adult sports shoes usually range from 80 to 120 dollars, and the cost is about 550 to 800 yuan, which is about one to 20% cheaper than the stores in China's Adidas or NIKE stores.

All in all, the rate of increase is

The same principle can be applied to the clothing market. No matter how expensive the brand is, no matter how high the price is, it can not stop the enthusiasm of consumers. At the same time, the pursuit of consumers also provides the company with room to increase the price.

The best example is Hermes's platinum bag, which is rare in all the stores in China, so that the price increase of 50% is reasonable.

In the final analysis, the reason for the increase in price can be very simple. That is, if a commodity seller can sell a higher price, why not do so? A thing is called luxury goods, its success is not that the price of this item is very high, but that consumers do not regard it as a kind of "quantity goods". On the contrary, in their mind, this thing is unique, and is a symbol of status and status.

That is to say, when a brand reaches the height of luxury, the high price is a matter of course.

But the mentality of the Chinese magnifies the value of luxury goods.

Many people have the idea that high prices ensure high quality and high standard when buying goods.

A simple example is that if any item of a luxury brand is sold at a price less than 1000 yuan, then many people may think it is just imitation. But when the same commodity is sold at a high price of more than 10000 yuan, no one will doubt its authenticity.

Therefore, this phenomenon has also created the fact that the prices of such commodities will not rise or fall.

To sum up, under the limited space of commodity prices, the relatively wide rising space makes it difficult for luxury goods in China to be more expensive than in Europe and America.

The opacity of manufacturers in cost and pricing decisions also increases the workspace of the increase.

As for the other so-called tax differences and pportation costs, the share in the differential price is not very significant.

Among them, the cost of pportation to each commodity accounts for only a few percent or even a few thousandths of the cost of the product. From the perspective of tax rate differences, the import tax on luxury goods should actually decrease gradually.

The reason is that if the import tax is too high, more consumers will choose to shop abroad.

For the country, this trend means the loss of domestic assets, so narrowing the price difference will inevitably start with lowering import duties.

China's policy of stimulating domestic demand is inevitable.

But for the general clothing and clothing consumer goods, the reason why the price is high is another case.

On the one hand, the premium of the goods is caused by the gradual increase in the cost from the pition from production to marketing, and on the other hand is caused by the over amplification of brand effect.

That is to say, a product under a brand is not worth so much money, but it is hard to raise the price to that level.

The most direct result is that the difference between the product at home and abroad has become a hallucination of consumers.

Because the brand effect of such products is not as significant as that of luxury goods, it is natural that goods under such brands often fail to carry high premium.

If the price is too high, it is bound to lose many potential customers.

If the price is too low, it will not only guarantee the profit margin, but also reduce the brand image.

Therefore, most products adopt a "high premium, multi discount" approach.

The most common examples in shopping malls are sales promotion such as "buy one hundred, reduce fifty" and "second half price".

In fact, as long as the consumer is careful enough and careful, the actual amount of expenditure is not much different from the consumption abroad, because such sales promotion measures have been roughly equal to seven to twenty percent off of all commodities.

As for other sales promotion methods, there will be no more details here.