LV Japan'S Two Degree Price Easing Policy To Stimulate Luxury Market

< p > France luxury group LVMH has announced that it will increase the average price of handbags, wallets and other leather products of Japanese LV on average by 8% in July 1st against Japanese yen against the euro.

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< p > it is reported that this is the second time that LV has increased its price in Japan for half a year. According to the reporter's understanding, the price increase has not been involved in China.

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< p > for Zhu Qinghua's price adjustment in Japan, CIC light industry researcher Zhu Qinghua said that if the Japanese yen is weak, if LV does not take measures to raise prices, on the one hand, the group's business in Japan will suffer a lot of losses; on the other hand, it will lead to price skew, thus making LV sales in other regions somewhat hampered.

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< p > < strong > LV Japan's two degree raise price < /strong > /p >

< p > in February 15th this year, Japanese LV had increased the average price of brand products by 12%.

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< p > in the view of Zhou Ting, Dean of luxury goods experts and the Institute of wealth and quality research, raising prices is the usual tactic of LV. LV always hopes to maintain brand value and image by way of raising prices.

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< p > "careful observation can be found that LV has been trying hard to raise the frequency of price rise in China and Japan in recent years. The price rise of two times a year is the routine behavior of the enterprise, but now there will be an irregular price increase according to the market changes."

Zhou Ting said that in the short term, LV's strategy of raising prices is conducive to the maintenance of brand value. In the long run, it will lead to a rapid decline in brand value.

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"P > HSBC HSBC analyst Antonio Belgi (AntoineBelge) believes that rising prices are inevitable, which is LV relocation strategy.

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< p > LVMH chairman and chief executive officer Bernard Arno (BernardArnault) said in the group's 2012 financial report that currency war risks. In 2012, LV had 8% of its revenue from Japan.

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< p > it is understood that in January 31st this year, Bernard Arno told the LVMH annual report analyst conference call: "group strategy will restrict the opening of shops, focusing on high value-added leather products."

LV has already provided guests with customized exotic leather products and provided personalized services to the guests at flagship stores.

Bernard Arno also said that he would not continue to open stores in China's two or three tier cities, so that brands would not be too common.

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< p > Antonio Belgi said that LVMH is implementing the strategy of "increasing leather products", and the sales volume may decline, but it is in line with brand long-term value investment.

He also expects LV sales to rise by 6% in 2013, but sales may drop by 2%~3%.

Belgi's analysis is based on the estimation of the high price of leather goods and the constant price of leather goods.

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< p > < strong > easing policy stimulates the luxury market < /strong > /p >

"We are importers," said Japanese spokeswoman KaoriFuse P LV. "We are importers. The low yen and rising raw materials are partly responsible for the rise in prices."

But KaoriFuse declined to disclose the price increase of individual commodities.

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"P >" after LV's rise in Japan, it is hoped that the number of tourists who purchase LV in Japan will be greatly reduced.

But China's LV pricing is relatively high, and the possibility of tourists returning to buy LV in China is less likely to turn to Europe and the US.

Zhu Qinghua said that China has a higher tariff rate on luxury goods, and LV does not occupy a price advantage in the Chinese market.

Chinese consumers spend more on foreign markets, and this situation is difficult to reverse over a long period of time.

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< p > a recent McKinsey survey shows that since Abe Shinzo took office as prime minister at the end of last year, its easy monetary policy has slowed down the yen against the US dollar, and the yen has depreciated rapidly, leading to the fact that Japanese consumers who used to love luxury goods to Europe and the United States are more inclined to consume in Japan.

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< p > media reports said Brian Sasberg, a Tokyo based partner in McKinsey, said that more than half of the Japanese luxury goods industry CEO or CEO believes that this year's sales will be better than that of BrianSalsberg.

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P > it is noteworthy that Bernard Arno also said in his previous financial statements that a new round of price increase for the European market was made because of high tourism retail sales.

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< p > to this, Zhou Ting pointed out that the brand is mainly aimed at maintaining the balance of the market. We must ensure that the gap between the markets will not be too big and avoid the consumption outflow.

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< p > while Zhu Qinghua believes that the price rise of LV Japan is only an introduction to Japanese luxury goods, and other luxury brands are bound to rise, especially with the same level of luxury goods as LV.

There will be no new round of price increases in the European market. The price increase in Japan is only a partial phenomenon, aiming to deal with the depreciation of the Japanese yen.

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