International Luxury Price Increases

Gradually increased since last July.

Why do luxury brands adjust prices so frequently?

A source familiar with the matter said that on the one hand, to increase revenue, on the other hand, the feeling to consumers is that their products are selling well.

At the same time, in order to fight for greater discourse power, internationally renowned luxury brands are beginning to launch frequently in the capital market.

Italy fashion Brand Company Prada SpA recently submitted an initial public offering (IPO) application to the Hongkong stock exchange.

It is said that Prada plans to sell a 20% stake through IPO, and the company's capital valuation will be 7 billion -80 billion euros.

And French famous Hermes said recently that it was negotiating a 45% stake in the sale of the fashion brand Jean-Paul Gaultier (JPG).

Blin Gene, vice president of Intercorporate, said that because LVMH bought 20% of Hermes, the latter needed capital expansion to resist LVMH's takeover.

The purpose of international luxury brands is to increase capital strength, of course, in order to expand, and China is naturally an important battlefield.

Insiders believe that this may be another reason for the rise in the price of luxury goods.

International luxury brands want to narrow the price gap between China and overseas markets.

According to the results of recent surveys by the Ministry of Commerce, watches, clothing, liquor and other 20 brands of high-end consumer goods, the domestic market price is 51% higher than the United States, 72% higher than France.

After the price increase, the cost of buying luxury goods abroad decreased significantly.

At present, many international first-line brands have opened outlets in China, and their price strategies have been adjusted, such as raising the prices of overseas markets, adjusting the supply of goods, and making the stores in the mainland market more attractive.