Luxury Brands Are Rising To Maintain A High Position.

< p > < strong > New Year means new "a href=" http://www.91se91.com/news/index_c.asp > luxury goods < /a > price. < /strong > < /p >.
< p > recently, French luxury group LVMH spokesman said that the LVMH flagship brand began to raise its brand price in Japan from mid February, raising its average price by 12%. The price increase is also the largest since LV entered Japan. In addition, the price of handbags for LV counters in mainland China has also increased slightly: the price of domestic LV counters has increased by more than 4%, while the price of goods in Paris LV stores has increased by 5%-10%. < /p >
< p > according to the official interpretation of LV group, the price rise in Japan is partly due to the weakening of the yen and the rising price of raw materials. Last year, LVMH accounted for 8% of its gross income in Japan. In the past 3 months, the Japanese yen has fallen by 13% against the US dollar. Due to this, the income of LVMH is also reduced. In addition, LVMH group insider changes and brand effect are seriously affected, and many other reasons are also a major factor in its decision to reduce stores and raise prices. < /p >
< p > at the same time, because of the position of LV in the luxury sector, according to statistics, Chanel, Chanel, Bvlgari (BVLGARI), Dior (Dior) and Ferragamo (Ferragamo) and other 11 first-line international brands now have about 80% higher prices. < /p >
< p > < strong > price increase to maintain the high-end position < /strong > < /p >
< p > in fact, in recent years, the price rise of luxury goods every year to two times has become a "Convention". Every time the price increases 3%-5%, the luxury goods seem to be a "illusion" of a reliable investment product. For example, Dior (Dior) brand "Lady Dior" bag, the bag was given to Princess Diana and has a "nickname" nickname, 7 years ago, its price was 14 thousand yuan, and up to 32 thousand yuan today. Even so, the bag has been in a hot market for a long time. Some media even issued "if 7 years ago boldness and insight to buy this package, earn more than other investments". < /p >
< p > "in general, luxury brands focus on collective price increases in July and August, but this year's price rise has come earlier." Zhou Ting, a luxury research expert, said in an interview that luxury goods are more expensive to ensure their high-end status in the industry and consumers. < /p >
Because of the depreciation of euro in recent years and the depreciation of European luxury goods, the price strategy of European luxury group is very clear, that is to say, with the development of society, the brand's high value image has been retained. Once there are any factors that affect the shrinkage of luxury brand image, the price of luxury goods will rise. P If the price is not adjusted in time, it may lead to the tragic situation of Pierre Cardin and Montagut, and become an ordinary brand, and its image value is plummeting. < /p >
"P", "for decades, this strategy of price increase has been receiving good results, making consumers flocking to it." A veteran buyer of the industry told times weekly reporter that many of the top brands such as Hermes, Chanel, LV, Dior and so on consciously cultivate their "classic" handbags, such as Hermes's "platinum bag", Chanel's 2.55 handbag, LV's Speedy handbag, Dior's Lady Dior and so on. Let these classic handbags gradually become a symbol of status and status in the minds of consumers. These classic product designs are rarely changed and sell year after year, just like brand flags. In order to maintain the brand's sense of value, create a brand image, strengthen the role of classic "value preservation" and "value added", luxury brands constantly increase the price of classic brands, so that the brand will remain strong in the secondary market and make the brand more vitality. < /p >
< p > "seeing that this year's classic is 30% more expensive than it was a few years ago, consumers will think that clothing, jewelry, handbags and watches of the brand are on the rise. However, in fact, the prices of fashion products such as the classic ones are difficult to compare. The design is different and the materials are different. " The buyer said. < /p >
< p > in addition, because the Chinese luxury goods "a href=" http://www.91se91.com/news/index_s.asp "overseas consumption < /a > has become an important factor that can not be ignored by all major brands. Increasing the prices outside China to deal with the impact of profits caused by Chinese tourists has also become an indispensable explanation for the price increase factors. Increasing the price of luxury goods sold in Europe has become a key issue for industry executives. Among the high-end goods sold in European cities, Chinese tourists account for 70% of the total sales volume. These tourists choose to shop in Europe, which brings pressure on luxury companies' expected profit margins. < /p >
< p > < strong > European price increases do not interfere with "overseas consumption" < /strong > /p >
< p > obviously, luxury brands hope to increase the price gap, narrow the price gap between Europe and China, and put the Chinese people back to the idea of domestic consumption, and can not stop more and more "overseas consumption" of Chinese people. According to Bain Capital Research, last year, Chinese people consumed 25% of the world's luxury goods, but 60% of them consumed abroad. < /p >
P, a white-collar worker working in a foreign company in Shanghai, told the times weekly reporter that since the fourth year of the University asked people to buy the first LV Neverfull bag from abroad, she would invite people to buy them every year or to buy luxuries in Europe by herself. "Sharon" "Basically, overseas purchases can be 1/3 cheaper, so the annual increase in 5%-10% will not affect my overseas consumption." < /p >
< p > she made an account of the times weekly reporter. Taking the price of LV Speedy 30 handbag as an example, from the French official website data, although it has risen from 435 euros in 2009 to 595 euros today, the exchange rate price is 4821.718 yuan, while the price of the model handbag in China's official website is 6350 yuan RMB. < /p >
< p > "like Speedy 30, the total price is not very high, and the gap is not very obvious. If the total price is higher, the gap will be more obvious, which can basically achieve the situation that the overseas price is cheaper than the domestic price. Sharon said. < /p >
< p > in addition, the mentality of "hope that the price of the brand rises and the price of buying more and more" is very few. "I also know that luxury goods are going up every year, but I still need these things. For me, they are like necessities. They have to go outside to make faces, gifts are even more needed." A businessman in Wenzhou who did not want to be named told the times weekly reporter: "and the more the price rises, the more it shows that what I buy is constantly increasing. Is this not better?" /p
< p > < strong > luxury consumption rising, luxury market growth < /strong > /p >
P, of course, it is precisely because of "overseas consumption", Chinese luxury consumption is rising steadily, and China's luxury market development can not be treated equally. Chinese are flocking to buy luxury goods abroad, and the "injury" is the interest of the brand in Chinese stores. < /p >
In the first half of 2012, sales of all business groups of LVMH group showed a solid growth, but sales performance in the Chinese market declined slightly in the first half of P. Burberry announced that the sales growth in the Asia Pacific region, which dominated by China in the first quarter of 2012, dropped to 16% from 67% in the same period last year, which has cast a shadow over the Chinese luxury market. < /p >
Francois Henri Pino, chairman and chief executive officer of luxury group PPR, said in 2013 that the expansion of Gucci brand stores in China will cease in 2013. And not long ago, the head of LVMH also sent out a signal that it would not continue to open stores in China's two or three tier cities. At the same time, Burberry and one of the three largest luxury goods groups in the world also claimed to slow down the expansion in China. < /p >
< p > "in 2013, China's local luxury market may enter a severe winter." "Policy is also a major factor affecting luxury consumption in the Chinese market," a senior research fellow from a foreign bank said. < /p >
< p > it is reported that the purchase volume of luxury goods in China has reached the lowest level in 5 years this year. The sales of high-end brands dropped by 40% on the eve of the two sessions. According to media reports, the major a href= "http://www.91se91.com" brand "/a" is seeking corresponding changes to cope with the new situation in China, for example, putting most of the brand Logo into the inner lining. < /p >