Luxury Price Secret: LV Cost Price Is Only 50 Yuan, Prada Does Not Exceed 100 Euros.

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A few days ago, several overseas purchasing vendors revealed that the price of several classic handbags of LV French official website has been raised on the whole, up to about 10%, and the difference between some products after adjustment and domestic price is maintained at around one thousand yuan.

This year, the annual price rise of luxury goods seems to have become "Regulations".

But why do luxury brands increase frequently? What is the "secret" behind the rise of luxury goods?

The difference between China and the mainland is around 1000 yuan.

It is reported that in early October, the price of LV French official website was quietly adjusted, involving the adjustment.

A number of handbags, including classic Never Full, Speedy, Noe, Alma, etc., the price range of around 10%.

From the "list of prices" listed on a large shopping website in China, the Alma large handbag has been raised to $13851 from the original price of RMB 12798 yuan (8.1 converted according to the euro exchange rate yesterday), up 1053 yuan, and the Speedy30 handbag has been raised to 4374 yuan from the original price 4050 yuan, or 8%.

Among them, the classic series Never Full medium handbag price adjustment after the conversion of RMB 4698 yuan, and the current handbag in the Hangzhou counter sells for 6500 yuan, the difference between the difference is about one thousand yuan.

Costs rise to excuses for luxury goods.

In the light of

The reason for frequent price increases is that every luxury official's official statement is to take into account the changes in raw materials and exchange rates, so we must raise prices globally.

However, the pricing principle of luxury goods is never the same as that of general consumer goods.

Luxury is beyond the traditional pricing thinking. Its primary task is to maintain the fundamental attribute of high price.

The so-called "cost increase" of luxury brands is simply untenable.

True cost of international cards

In fact, the cost of luxury goods is calculated: raw material + processing cost + luxury brand value + market public relations cost + channel cost + tariff and government tax rate = actual sales price.

The brand value of luxury goods costs has become an important one, while raw materials and processing costs are relatively low.

LV: 10000 yuan, the cost is only 50 yuan.

Recently, Partizio Dimaco, President of Italy luxury brand GUCCI, broke the news that the material cost of Louis Weedon (LV) canvas bag was one meter 11 euros.

Prada: the cost of the bag is not more than 100 euros.

An industry insider revealed that the international luxury subcontract can be said to be an open secret.

Although Prada is unwilling to admit death, the cost of OEM has been greatly reduced. A Prada bag with a price of two yuan or thirty thousand yuan will not cost more than 1000 yuan, and the profit rate will even reach 10 times and 20 times.

Gucci: 10000 yuan, the cost is not more than 90 euros.

According to a luxury factory manager, a new Gucci leather bag worth 10000 yuan is worth 700 euros in Europe.

In its cost structure,

It costs about 50 euros, plus rivet, buttons, zippers and other materials. The total price of a leather bag is not more than 90 euros.

Coach: the cost of 4500 is 350 yuan.

According to the insiders, Coach is doing 45 dollars in China, a package of 292 yuan, plus customs duties, 350 yuan, 4500, the most 10 times the profit.

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The real reason for the rise of luxury goods

1, maintain the brand's "high price".

The rise in the price of luxury goods is largely due to its underlying operational strategy.

The "high price" feature of luxury goods is not only a manifestation of the spiritual value of luxury goods, but also an important means for users to show their identity and status.

In the economic situation of exchange rate change and inflation, no price increase means depreciation. It also means the loss of supporters.

2, luxury brands raise their rankings through rising prices.

The famous luxury brand Channel has raised its retail price since February 1st. The price adjustment involved Chanel watches and jewellery bags and its increase was around 15%.

More importantly, Chanel's buying system has also changed.

"From February onwards, waiting list, Classic series from booking to get goods for at least six weeks, spot less and less, the purchase is also more and more difficult."

According to an international buyer, Chanel is catching up with Hermes (Hermes).

3, there are differences in the pricing of luxury goods in different regions.

The price difference between some Chinese and American packages is more than doubled. Even after purchasing, the price is cheaper than the domestic price by more than 1/3.

In fact, Prada, LV, Armani, Gucci, Vivienne Westwood, Ferragamo and Burberry and other international luxury luxury brands in China also priced at least 1/3 higher than the United States.

An industry insider said that every luxury manufacturer has its own pricing strategy, and it is secret.

The strategy of these secret pricing is the formation of luxury manufacturers according to the social culture, consumption habits and behavior characteristics of consumers in various countries.

In addition to the above factors, luxury manufacturers often need to spend a lot of energy to care about the impact of pricing on consumers' psychology.

4, raise prices to buy buyers back to China.

At present, the luxury goods giant is in a dilemma. Reducing prices in China will squeeze profits and may destroy brand reputation. In Europe, if prices rise too much, it may hurt the desire of local consumers in the euro zone crisis.