Chanel LV Led The &Nbsp; Luxury Price Surges Swept 2011.

No collar jacket, rimmed accessories, double C LOGO Handbag...

French luxury

In July 2010, Chanel's handbag price was raised by 10%~20%.

By the end of 2010, Lancome, Biotherm, Helena and other L'OREAL group's high-end cosmetics came out.

Even during the financial crisis, Chanel, Louis Weedon and other luxury brands have never put down their positions.

Nowadays, the price of raw materials is generally rising all over the world, and luxury brands have more reasons to raise prices.

And the emerging markets represented by China are attracting luxury fever, making more money in China to make up for slightly depressed European and American markets, and Chanel is no exception.

Price increase "relay"

Entering the 2011, Chanel cosmetics also entered the ranks of rising prices.

In the past, the "regular price increase" used to raise the purchase threshold usually covered only handbags, fashion items and so on.

A salesperson at a high-end shopping mall in Shanghai, Chanel, revealed that Chanel's perfume, skin care products and make-up products have all gone up. The price of a single product is less than tens of dollars, and hundreds of dollars.

Take an extravagant cream as an example. Recently, it has raised 200 yuan on the basis of the original price of 3300 yuan.

By the end of 2010, L'OREAL's high-end products had been raising prices by about 10%.

More than a month later, Chanel, who has been on the "mysterious marketing" route, has chosen to quietly raise the price.

Before and after the Spring Festival, all the counters in Chanel have begun to implement the new price.

Sales staff said that the price increase was determined by the new strategy of the company.

Cosmetics are only a branch of Chanel's huge product line. The group also includes handbags, fashions, watches, jewelry and other luxury items.

In some high-end shopping malls in the first tier cities, Chanel set up "boutique", independent of Chanel's cosmetics counters.

A staff member of Chanel boutique told reporters that in July 2010, Chanel had a big rise in prices, mainly for Chanel's handbags.

Taking a classic handbag with a price of more than twenty thousand yuan, for example, the price rose by 2000~3000 yuan, or 10%.

Accessories, jewelry and other prices have risen to varying degrees, only footwear prices remain stable.

Although the price increase has become routine every year, the increase is different from that of the year.

The staff told reporters that the annual price increase is due to the potential for appreciation of handbags and other products.

Cosmetics as consumer goods, there is no appreciation potential.

Huang Zhen, general manager of Shanghai Herborist Cosmetics Co., Ltd., told reporters that the rising price of raw materials is indeed an inducement of the price increase of high-end cosmetics.

In the international market, many cosmetic raw materials have been rising in recent months.

Whether the price rises or how much increases is not entirely determined by the price of raw materials.

In the face of sales channels -- department stores and consumers, brands like Chanel are usually in a strong position, and are more likely to choose to raise prices than other vulnerable brands.

Huang Zhen believes that for the purchase of Chanel cosmetics, the 10% increase is not difficult to accept.

In the face of price insensitive consumers, price increases are more about business strategy considerations.

2011 price increase year

In the past 2010, many luxury brands went up for two times in an unprecedented price.

At the beginning of the new year, Louis Weedon came up with news of the rise in price.

For Chanel's 2011 price hike plan, staff said it is unclear.

In 2010, the Chinese Customs issued the "54 order". If the inbound passengers carry more than 5000 yuan, the excess will be taxed.

The tax rate for golf balls and ball watches and high-end watches is 30%; the tax rate for cigarettes, alcohol and cosmetics is 50%.

Coupled with the rising demand for luxury tax in China, the domestic luxury market is expected to increase in price.

A multi European luxury brand agent predicts that in 2011, China's luxury market will be "up".

Every year the world's major fashion week is a luxury brand order meeting.

In the spring and summer fashion week of Milan in 2010, many European luxury brands increased their order prices, which will be landed in the consumer market in 2011, and prices will naturally be low.

As the fashion week continues to rally, consumers will continue to see frequent increases in prices in all stores in 2011.

In recent five or six years, luxury goods have been adjusting their prices every year, but they are mainly clothing and handbags, less cosmetics.

Since 2010, the frequency and amplitude of price increases have increased.

Cosmetics industry, which has relatively low total price, has seen a price rise.

Luxury brands are well versed in the psychology of consumers, and making "scarcity" artificially is one of their traditional strategies.

The production of limited edition products often leads to enthusiastic pursuit.

Nowadays, constantly raising prices is partly to satisfy consumers' psychology of comparing and showing off their wealth.

Zhang Xinke, a professor at The China Academy of Art, who has long been concerned about the fashion industry, told reporters that many European and American consumers are keen on the brand new and unique brands created by the cutting-edge designers in recent years. Their interest in traditional big names such as Chanel and Louis Weedon has weakened.

Only in formal occasions, do you choose a Chanel suit to make sure that you don't make a mistake in your dress.

"BRICs" is another scene. With Chinese consumers as the representative, the craze for luxury goods is just beginning.

Many people do not know much about fashion. They only know how to pack themselves with Chanel and Louis Weedon.

In 2009, China surpassed the United States to become the second largest consumer of luxury goods in the world.

According to incomplete statistics, China's luxury consumption in 2010 was as high as 40 billion euros.

Zhang Xinke told reporters that the main brands of many luxury goods groups are not big profits, often used to shape the image, while pulling the sale of accessories such as scarves and belts.

Accessories often contribute 1/3 or even half of the profits to the group.

The luxury brand agents told reporters that many luxury brands are moving towards "relying on China to save the world".

But no one can predict how long the Chinese market will last.

With the end of the discounted season in Europe and America, many luxury brands have started the annual conventional price increase. Due to many factors such as the strong exchange rate of RMB, the price increase has not yet spread to the Chinese market, and the price gap between the luxury goods at home and abroad has temporarily shrunk.

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The highest increase is nearly 30%.

In the price rise of LV, the classic growth rate, such as NeverFull and Speedy series, rose from 4% to 11%.

For example, the classic Speedy 30, the price in the US market rose from $690 to $730, or about 5.8%. The highest increase was in the Mahina leather series, one of which rose from $2800 to 3550 US dollars, or up to 26.8%.

In the European market, LV growth is not as good as the US market.

Xiao Bai Dai, the person in charge, said: "the price increase within 1000 euros or less than 30 euros; more than 1000 yuan, or around 50 euros."

Taking Speedy 30 as an example, the European market rose from 475 euros to 485 euros, while the Neverful medium rose by about 10 euro, or around 2.1%, while the PetitNoe Tri Color of 1000 euro or above rose from 1390 euro to 1390 euro, or about 3%.

"For most consumers, the most concern is the classic price range of five thousand or six thousand yuan, which is not much adjusted."

Xiao Bai purchasing said the person concerned.

In addition to LV, Chanel, which has raised its first price in October last year, has changed the classic style into a double cover style at the beginning of the new year. At the same time, it plans to adjust its price in April this year.

Dior and Tiffany are also raising prices.

The domestic market has not yet been adjusted.

Despite the fact that the overseas market is already booming, the domestic retail price of many luxury brands has not been adjusted in the near future.

Take LV classic Speedy 30 as an example, after this round of price rise, the style in the European market retail price is 485 euros, according to the euro RMB exchange rate 8.9 to 1 to calculate, the RMB is about 4317 yuan, and the same item in the United States price of $730, according to 6.59: 1 exchange rate, folded RMB 4810 yuan, although the price rises before the price of 200 yuan, but the domestic retail price is still a lot cheaper than $5500.

According to one industry insider, the reason for this wave of price rises has not yet spread to China, or because of the fact that luxury goods have different buyers and market operation teams in different markets, the price adjustment is different.

"For example, when the price rose last year, the LV market in Hongkong rose much higher than that in the mainland, such as LV's TivoliPM handbag, Hongkong gained 350 Hong Kong dollars, and the mainland only increased by 50 yuan."

Xiaoxi fashion editor Xiao Ding believes that the reason why LV has not temporarily adjusted prices in China is related to the strong trend of RMB against the euro and the US dollar.

Luxury goods regularly rise in price as a rule.

Because of the annual price increase of luxury goods, many brands have not doubled their prices in the past five years.

Chanel classic Classic Flap (cowhide) trumpet size in 2006 retail price of $1495, now has risen to $3200.

Sun Yiming, associate professor of luxury research at Fudan University School of management, said: "luxury can not simply be regarded as a product, and its price increase does not depend on cost factors.

Many luxury brands adjust their prices every other year or a few months, not just a hedge, but a confidence in the market.

"More and more Chinese are buying luxury goods in overseas markets, and demand is booming, and prices are naturally high," said Xiaoding, a fashion editor.

Gao Boxuan, a senior researcher at CIC, said that, from past experience, the sale of luxury goods has not shrunk because of the rise in prices. Instead, it has maintained its high-end brand image through price increases. On the other hand, the increase in prices means that consumer spending has increased.

Gao Boxuan believes that the reasons for the rise in the price of luxury goods are complex, with the impact of rising costs of raw materials, exchange rate effects, tax expectations, inflation factors and brand marketing.