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Consumers Are Smart Enough To Deal With Surging Prices Of Brands Such As Chanel.

2013/6/23 19:35:00 18

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following the first round of price rises this year, Chanel, SK-II and other high-end cosmetics brands entered the market in June. High-end cosmetics launched the second price increase in the Chinese market in the year.

Shiseido, L'OCCITANE, CLARINS and other brands have joined the ranks of rising prices, the highest price rise of up to 20%.

As for the rising price of cosmetics, analysts in the industry pointed out that rising cost is no longer the most important factor affecting the pricing of high-end cosmetics. By raising the price gap between the middle and low end brands and maximizing the profit margin, it is the key reason for the rising price of high-end cosmetics.

Consumers who are not sensitive to price will not abandon these high-end cosmetics brands because of price increases. However, with the increasing rationality of Chinese consumers, some consumers will begin to switch to online shopping and overseas purchasing, and to regain the favor of "old products" which are more cost-effective than those of P.

phenomenon .

the price of high-end cosmetics rises and goes up /p >

data from major stores show that in the early June, many cosmetic brands began a new round of collective price adjustment, with the largest price increase reaching 15%, involving hand cream, foot cream, sunscreen cream and body lotion.

according to the staff of Shiseido special store, since the beginning of June, the price of sunscreen, mask and emulsion products of Shiseido has increased, which involves many series such as white beauty, Yue Wei, water life, and so on. The increase is mostly around twenty or thirty yuan, not more than 10%.

The biggest increase is a 200ml loaded compact body cream, from 520 yuan to 620 yuan, or 20%.

Less than P, L'OCCITANE's 35 kinds of hand cream, foot cream, moisturizer and other body products have also risen in collective prices, rising 10 to 20 yuan, no more than 10%.

after the small scale price adjustment in April, several products of CLARINS's plant moisturizing series have also been adjusted for prices between 4% and 10%.

Shiseido has confirmed measures to increase prices.

Since June 1, 2013, the price of some of Shiseido's brands has been raised. In July 1st, some of its CPB brands will also be raised.

It is said that the price adjustment of Shiseido in the Chinese market is mainly aimed at maintaining a balance with other countries' retail prices.

this is the second round of price adjustment measures for high-end cosmetics brands in the Chinese market.

After the new year's day this year, Chanel, SK-II and other major cosmetic products have gone through a round of price increases, with a range of about 6%.

Chanel raised its price in the middle of January by 7% to 30%. Most of SK-II's products were raised on the whole, most of them rose from 5% to 8%. Dior also started raising prices from February, with an average increase of around 20%.

As a weathervane of the cosmetics market, the price adjustment of these big brands also affects other brands' pricing strategies.

according to statistics, in the past two years, the price of high-end cosmetics has been increasing frequently. In 2011 and 2012, there were at least 3 increases, ranging from 5% to 30%.

cause .

strong > high-end price match with "high-end" positioning

industry insiders conclude that whenever the price of cosmetics rises, the price of raw materials is always a "omnipotent" explanation.

High end cosmetics are priced at a high price. Many brands often push the price by pushing new products and changing new packaging. When they seize the market in the summer peak season, they will raise their price to around 10%, which is usually not enough to touch consumers' price sensitivity and sometimes it is not easy to be noticed.

for the pricing strategy of high-end cosmetics, especially the international brand cosmetics, Zhao Ping, deputy director of the Consumer Economics Research Department of the Ministry of Commerce, explained through the theory of skimming pricing that "skimming pricing method" or "high price method" mainly priced products at high price, so as to make as much profit as possible before the early stage of product life and competitors entering the market.

The main reason for the rising price of imported first-line cosmetics is that its market share is high, demand price elasticity is small, consumers have no choice and no comparison of the same type products, so they are not sensitive to price increase, so every price adjustment can make a big profit for businesses.

Other reasons for price increase include import high tariffs, excessive circulation, rising factor costs and rising marketing costs.

Less than P, however, a more convincing reason known to the industry is that the high-end cosmetics must maintain a "high end" brand positioning with a higher price to narrow the gap with the low-end brands.

For example, Procter & Gamble's newly launched brand name "high-end Chinese style" brand is priced at more than 1000 yuan at the time of the market, which means that the price of other international first-line cosmetics brands should be matched and the high-end brand position should be established.

The "threshold" of 1000 yuan for a single product is also regarded as a "price watershed" between the current high-end brand and the low-end brand.

Zhou Ting, President of the Institute of wealth and quality, and Li Jianan, a chemical industry researcher at CIC, agreed that the price of cosmetics has been less and less influenced by cost factors. The strategy of maintaining high-end positioning and the strong consumption power of the Chinese market are the main reasons for increasing the price of high-end cosmetics in recent years.

On the one hand, the high price of high-end cosmetics has created a "price difference" with other low-end brands, filtering out a large number of competitors from the price stratification.

On the other hand, in recent years, the consumption demand of China's high-end market is very strong, and consumers are also highly esteems for big brands. The rising price of high-end cosmetics has deliberately created unbalanced factors in the market, and has also catered to many consumers' psychological expectation that "cheap goods are not good, good goods are not cheap", and ultimately achieve the goal of maximizing profit space.

market /p >

consumers are showing their ability to cope with the rising tide price

although there is a surge of high-end cosmetics, there are still a large number of consumer groups who are not sensitive to price fine-tuning. Even if they rise tens of millions of dollars, they will not change their brands easily, so the impact of price increases on sales is not obvious.

However, on the other hand, some consumers are more and more rational in pursuit of the so-called "high-end" brand, and gradually turn to other choices under the background of increasing price of high-end cosmetics.

By virtue of the geographical advantages of the Pearl River Delta, people go abroad to buy cosmetics or seek overseas purchasing. P has become a very common practice.

Cheng Yuanyuan, who has been engaged in purchasing business in New Zealand and Australia for many years, told reporters that "many big brands in the domestic market are very priced. The same cosmetics are much cheaper abroad, and many of them are equivalent to 40 percent off or even lower domestic prices, so buying overseas is obviously more cost-effective."

there are still a number of consumers who choose high-end cosmetics located in the shopping mall counters as "trial dressing rooms". After seeing the products, they buy them online.

Usually, the pricing of online stores will be cheaper than that of counters. If sales promotion is made, the discount will be more attractive.

in addition, with the rise of "domestic goods craze" in recent years, many consumers have begun to abandon the superstition of the international brand and begin to choose the cosmetics that are suitable for them.

China's old brand cosmetics such as friendship cream, hundred gazelle moisturizing cream, Pien Tze, Yu Meijing and so on, not only carry forward memories and profound cultural details of several generations, but also make their formula better suited to the oriental characteristics.

"The price of these brands is generally more than ten yuan, tens of dollars, cheaper than international brands, but the feeling of using it is also very good. In fact, these brands have been used all the time, so even if compared with international brands, there will be no experience gap, and the price difference is very obvious."

A young girl compares and commented.