Luxury Brands Narrowing The Price Gap To Realistic "Down" Clothing Luxury Brands

International luxury brands have a "secret secret" in China: P, a luxury brand in China, which sells at least 50% above the overseas market price.

However, this phenomenon is changing now, from luxury cars to expensive handbags. With the decline of interest in luxury goods by luxury goods, international luxury brands have to put their smiles on the rising middle class in China. The Wuhan market clearly smells of big head down.

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< p > > strong > 200 thousand buying Mercedes Benz BMW is no longer a dream < /strong > /p >

< p > < strong > luxury car manufacturers in disguise cut prices to grab market < /strong > /p >

Qiu Hui, salesman of Wuhan Luther Automobile Trading Co., Ltd., told reporters that in the past two years, the market price of luxury cars did show a marked downward trend, especially at the dealer terminals. P

"The obvious price reduction of luxury cars started in 2012. Before the luxury car manufacturers went better because of the volume, they did not let the price go up at all, and even appeared the situation of raising the price and lifting the car early, but now the situation is obviously different."

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< p > an example is that the lowest price of the 2013 Mercedes Benz C C260 elegant manufacturers is 388 thousand yuan, the same car, the lowest price of manufacturer guidance in 2011 is 428 thousand yuan.

In the US market, the lowest price of 2013 models of the same type of vehicle is 35 thousand US dollars, which is converted to 215 thousand yuan at the current exchange rate and 2011 dollars at the lowest 22 thousand US dollars, which is converted to RMB 142 thousand according to the RMB exchange rate in May 2011.

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< p > in other words, compared with the US market, the price of Mercedes Benz C C260 in the Chinese market in 2011 is about 2 times more expensive.

In 2013, the ratio dropped to about 0.8 times. In a short span of two years, the difference in price ratio decreased by 1.2 times.

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< p > a car manufacturer in Wuhan told reporters that the reason why luxury cars sold in China is higher than that in the US market because of the existence of VAT and consumption tax.

Public information shows that the price of the vehicle before paying the two taxes is 2011, 347 thousand, 2013, 315 thousand yuan, and the difference is 1.4 times and 0.5 times higher than that of the model.

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< p > < strong > however, a significant trend is that the difference is decreasing at < /strong > < /p >.

< p > Qiu Hui revealed that although the retailing price suggested by the manufacturer is still not low, it will subsidize the dealer in private, thereby reducing the actual terminal sale price of the luxury car.

"For a simple example, in the past a BMW X5, the retailing price of the manufacturer was 1 million, and then the dealer reduced the 7 point discount, so as a distributor, our sales price at the terminal can not be less than 930 thousand, otherwise we are losing money.

But now the difference is, manufacturers will generally take several more points, or give dealers a subsidy of tens of thousands of cars, so that our sales price on the terminal will drop. "

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< p > industry insiders say that at present Mercedes Benz BMW Audi these big luxury car brands all attach great importance to the Chinese market, and the trend of grabbing the market by reducing prices has completely emerged.

"You could never have imagined that Mercedes Benz would sell about 200 thousand of the cars in the Chinese market, but now these things are real." it's impossible for you to imagine that BMW will be sold.

The lowest sales prices of BMW's 1 series and Mercedes Benz B180 and A160 are approaching 200 thousand.

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"P" interview, the reporter met a car in Wuhan to pick up a car, Ms. Han, she bought a Land Rover Rover aurora.

"I had been planning to buy this car since the beginning of last year, but it has been dragged to the present for a variety of reasons.

At that time, the lowest price of the 2012 was 650 thousand, but the 2013 new price I buy now is only 588 thousand, which is more than 60 thousand cheaper. "

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< p > industry analysts pointed out that the luxury car brand in the Chinese market, through the reduction of prices to pull up sales strategy, will continue to use for a long time.

Because, "whether we can live in the rising middle class consumer groups, to some extent determines the future of these luxury car brands in the Chinese market".

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< p > < strong > > a target= "_blank" href= "http://www.91se91.com/" > clothing > /a > category luxury brand, narrowing the price difference < /strong > /p >

< p > < strong > leaving buyers in Wuhan for local consumption < /strong > /p >

< p > clothing < a target= "_blank" href= "http://www.91se91.com/" > dress < /a > luxury goods, also facing the price war in the Chinese market.

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Louis Weedon (LVMH) recently said that their sales performance in China has not been satisfactory in the past year, and their share prices have dropped.

Data show that the premium of Louis Weedon products in Beijing and Paris has been down from 50% last year to around 30% this year.

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< p > clothing luxury brands have never been pparent about the premium in the Chinese market.

But this fact is worth the number of Chinese overseas tourists in recent years.

In order to make more Chinese consumers stay in the mainland, some companies have begun to quietly reduce their prices.

Although this decision will bring pain to them in the short term, it is a step in the Chinese market in the long run.

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< p > take Wuhan local as an example. Before 2007, Wuhan's luxury consumption ability was seriously misread and underestimated, which can be found in the process of luxury brand investment in Guoguang.

Later, the customer data collected by the luxury brand itself made them see the purchasing power of Wuhan people on luxury goods.

Next, consumers see the brands that only exist in fashion magazines in the country, and appear on the scale.

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< p > with the rapid development of Wuhan City, the convenience of the overseas Chinese is rising.

Especially when the high-speed rail is opened, the Wuhan people are now making a trip to Hongkong, which is as convenient as a door between neighbors.

How to keep Wuhan's huge consumption of luxury goods as far as possible in Wuhan is the test of luxury clothing brands.

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Compared with overseas markets, the price of these luxury goods in the mainland market is obviously inferior to that of P.

In this regard, two years ago, Guoguang's unique trick was service cards: advance telephone booking, arrange parking spaces, accompany shops and timely dress advice, inform the season's fashion and new arrivals, and deliver goods to the house after packaging.

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< p > but most luxury consumers really care about the price. If the difference between the same handbag in Wuhan and overseas markets has reached over 10000 yuan, they prefer to take a plane to go shopping overseas.

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< p > Wuhan third outlets outlets, Xia Xiaohong, director of Rome spring in Jiangxia, said that in fact, the Wuhan people bought 30% luxury goods locally and 70% abroad.

Although the data in recent years show that the luxury goods market in Wuhan has ranked the highest in the country, the real amount of consumption left at home is probably only the luxury brand itself.

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< p > recently, the reporter visited Wuhan luxury brand distribution center and many luxury stores on the first floor of Guoguang, the difference is decreasing.

More than a luxury store clerk told reporters, take Hongkong as a contrast, the price of the same product, Wuhan and Hongkong are basically the same, the real price difference is only one exchange rate.

"The price of luxury goods is rising every year, which is the reason for the growth of the economic environment, but the difference between the same commodity and overseas market has become very small."

One shop assistant said so.

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< p > < strong > expert opinion: < /strong > < /p >

< p > < strong > reducing the premium is the strategic adjustment of luxury brands < /strong > < /p >

< p > for luxury brands to take the initiative to reduce premiums, Yao Li, a researcher at Hubei Academy of Social Science economics, thinks that there are two main reasons: "first, China's luxury consumption accounts for 1/4 of the world, becoming the largest consumer of luxury goods. Therefore, luxury brands are not excluded to seize the Chinese market and reduce the premium.

Two, from the perspective of global economic development, the impact of the financial crisis on the European and American economies has not completely diminished.

In recent years, the sales performance of luxury brands in European and American markets is not satisfactory, so the Chinese market has become their "life-saving straw".

Reducing the premium is, in my view, more of a luxury brand's marketing strategy.

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Cao Liang, vice president of the school of business and management of Zhongnan University of Economics and Law, told reporters that luxury brands should reduce their premiums. Under the background of global economic integration, P is also a must.

"Now there are more and more people traveling abroad, and consumers who can afford luxuries in China must be able to buy abroad, at least to Hongkong.

Therefore, the premium of luxury goods is no longer a secret. Under such circumstances, the effect of using price to cut the market will be very limited.

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