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    Luxury Shoes And Luxury Goods At Home And Abroad Due To High Price Difference

    2012/3/14 17:00:00 19

    International Difference In Footwear

    The price of 30 ml 1050 yuan has not stopped the "small brown bottle" (instant maintenance moisturizing cream) as one of Estee Lauder's most popular star products, and the same specifications in the US official website only sell 49.5 yuan, equivalent to 314.26 yuan, that is to say, the price of the product in China is 3 times more than that of the US price.


    According to the analysis of the consumption psychology of the World Luxury Association during the Spring Festival, 72% of consumers think that the price of going abroad to buy luxury goods has an advantage over China.


    however

    Behind the high price difference

    What are the reasons? Many Chinese consumers will target China's tariffs.


    In Lu Xiaoming's view, this is a common misunderstanding of Chinese people.

    Lu Xiaoming, a former managing director of MontBlanc (China) Limited, is well versed in the pricing of luxury brands. In an interview with the first financial daily, he bluntly pointed out: "in the Chinese market, tariffs account for up to 5% left and right of the final retail price of luxury goods."


    Lu Xiaoming put it in a secret: "the pricing strategy of luxury brands determines everything."


    "The pricing of different categories is different, but for example, bags and bags, the pricing strategy of luxury brands in China is about 20% higher than overseas," insiders said.


    "Regular price increases are one of the strategies for high-end cosmetics and luxury goods."

    Zhu Lin, founder of Kim Zun luxury marketing planning agency, told the newspaper that "regular price increases to maintain the high-end brand status, to achieve market synchronization and brand respecting" is a regular protection strategy for luxury brands.


    The same LV SPEEDY 30 package sells for 5750 yuan in the domestic market, while the selling price in Hongkong is 4841 yuan, while in France it is 485 euros (equivalent to RMB 4000 yuan).

    The price difference of luxury goods at home and abroad is almost reflected in all high-end products such as cosmetics, jewellery and garments.


    From outside

    Economic and Trade University

    A survey by the luxury Research Center found that the price difference between the domestic and foreign watches in the Chinese market was 100%~350%, the price difference of jewelry products was 20%~80%, the price difference of luggage and leather goods was about 30%, while the price difference of cosmetics was 40%~120%, the highest even reached 188.5%.


    What are the main reasons for the high price of luxury goods in China? What role do customs duties play in public criticism? Lu Xiaoming pointed out: "tariffs are not a major factor in the high price of luxury goods in China, and the pricing policy of luxury brands determines all this."


    According to the analysis of this reporter by Michel Gutsats, director of MBA and EMBA, Marseille School of Commerce, France, the pricing strategy of luxury brands in the world is based on value pricing, and the value of luxury goods lies in their exclusiveness.

    Globally, luxury brands usually develop retail prices based on three different regions in Europe, the United States and Asia.


    Even in the Hongkong area known as "free port", there are many luxury goods that are almost the same as those in the mainland of China. For example, Chanel and other brands are almost the same as the mainland except the exchange rate.


    In these different regions, the price base specified by the brand is quite different.

    In Europe, where luxury brands are mostly of origin, the base price of luxury goods is 100. For New York, brands usually set a base that is slightly higher than their origin, such as 105 or 110, while countries in other parts of the Americas make the final price index based on the reference price of New York based on different tax rates and operating costs of different countries.


    An insider also told this reporter: "brand based market price regulation is the most important factor in the high price of luxury goods in China, and this regulation is based on the purchasing power of consumers in different markets. The Chinese market is large and the purchasing power is great. The price of the Chinese market is higher than that of other countries."


    The person also pointed out that based on

    State purchasing power

    The regional pricing is also why the luxury tariff in India is very high, but the price is very low, and some of the goods are lower than the European market.


    From the perspective of Chinese consumers' consumption psychology, Daisy, an American top cosmetics brand in China, told reporters that consumers had asked her why another brand resembles a product which is more than 100 yuan higher than that of her brand. Is it a product that is better than her home? "We can see that for high-grade cosmetics, consumers who are not sensitive to price are more likely to buy better products than cheaper products."

    Daisy said.

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