Luxury Prices Really Never Have Ceilings?

< p > in the past ten years, from < a target= "_blank" href= "http://www.91se91.com/" > shoes < /a > to handbags and then to garments, a group of a target= "_blank" href= "target=" > designer "big" product prices rose sharply.

What is constantly upgrading the price tag of fashion industry? Luxury prices really never have ceilings? < /p >

< p > in New York, you can find beautiful shoes with a price tag of $40 everywhere, and even find a fashionable dress of $40 more easily. When these "fast fashion" products make the "fashionable" goods become cheaper and cheaper, the price of those luxury brands is rising again and again, and there seems to be no stopping.

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< p > in the world famous luxury electric business Net-a-Porter, more than 100 pairs of shoes are priced at more than 1000 dollars (while two pairs of sparkling Christian Louboutins need 6000 dollars).

Chanel's famous 2.55 pack has already caught up with the Hermes Kelly package 10 years ago. This popular handbag style in America has risen from $4800 in 2000 to $7600 now.

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The price increase of less than P, which is close to 60%, has made many people exaggerate, especially when compared with the US consumer price index. In the past ten years, the US consumer price index has increased by only 27%.

Of course, the growth rate of 6 is a typical luxury industry data.

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< p > in fact, in recent years, the price of luxury goods has increased by more than 2 times that of inflation.

In 2003, the price of Manolo Blahniks shoes, which was famous for sex and the city's Carrie Bradshaw, was priced at $485. 10 years later, the purchase of the same style required us $755, an increase of 56%, while the new season often exceeded 1000 dollars.

Over the past ten years, clothing with a price of over 10000 has hardly existed, but now it has become commonplace.

On the luxury business website Luisa Via Roma, the Fausto Puglisi embroidered skirt with a price of more than ten thousand dollars and a $ten thousand Fendi fur dress are no exaggeration, and consumers still have to pay the bill.

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< p > then, what makes the price of luxury goods go all the way? Will they really go up forever? < /p >

< p > the pricing game and psychological strategy that the luxury industry has always been good at are usually an important reason for price increase.

The more expensive products, the more satisfying the psychological needs of consumers to buy luxury goods for "exclusive" and "respectable".

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< p > as we all know, the most important part of the price composition of luxury goods is brand value.

The real value of luxury lies in the brand, not the product itself.

In 1869, Egyptian Pasha (governor) Ishmael ordered a leather suitcase from Louis Weedon.

In 1877, Russian crown prince Nicola and King Spain twelve became the users of Louis Weedon's products.

Customizing boxes for the king has made Louis Weedon a truly world luxury brand.

Consumers' demand for luxury goods is more of a spiritual satisfaction, and the luxury of 5 or even 6 figures has become a symbol of status.

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< p > operation based on luxury pricing strategy is actually a psychological game between producers and consumers.

Low key design, workshop production, limited customization.

Luxury brands are painstakingly engaged in this series of labels, all of which make consumers feel mysterious.

As a result, Barry Schwarz, a professor of psychology at Swarthmore College, was very puzzled about how much money she spent on buying suits.

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< p > Schwarz for the first time in Philadelphia Boyds men's clothing store saw a Brioni priced at $3000 on the shelf (a vendor who provided positive clothes to the upper class of the Kennedy family, etc.). The first impression was that the price was "too high".

That experience even triggered a series of research on Schwarz's pricing of luxury goods. He described those "sky goods" as "anchors", which set the price ceiling for some goods that could not be clearly priced, which is the customary pricing rule in luxury and fashion industries.

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< p > "it is wrong to assume that a consumer wants to decipher the price of luxury goods from the consumer product itself."

Lu Xiao said.

Taking a bottle opener as an example, having a bottle opener is far from enough for luxury goods, because those expensive products need to meet people's aesthetic needs, so they need additional investment from design and concept. Besides, the bottle opener must become a symbol of social status and reflect a certain cultural taste.

Therefore, luxury manufacturers need to invest additional funds in order to cater to the latter's "spiritual" needs.

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Wolfgang Latzler P once pointed out in the book "luxury brings prosperity" that luxury goods manufacturers will try their best to maintain low cost and avoid waste, but the problem of cost is generally second.

This brings the difference between a famous brand and a non brand name: the former always asks himself, "what is the best thing that I can use on this product"? The latter asks himself, "what is the best thing that I can use in the prescribed cost range?"

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< p > according to the prevailing "price pricing method", product price = manufacturing cost + R & D cost + marketing expenses + sales expenses + management fees + exchange gains and losses + reasonable profit + brand premium.

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"P >" but the price method is obviously not applicable to luxury brands. Every company, every family business has its own different pricing rules, and it is secret.

One of the most important principles is to maintain the price consistency of the same product in different markets all over the world.

Among them, expensive pportation costs, tariffs, and huge expenditures generated by international retail and marketing make the cost of luxury goods high. Their sales secret is not "mass" but expensive, and then sold at a high price.

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< p > as an illustration, GUCCI's famous saying is "make a product scarce, and you can sell it at a high price".

Then, when GUCCI's big guys bought YSL, they shut down most of the YSL stores first, hoping to prove that the possibility of higher profits and less supply might lead to profit growth.

Sure enough, the profits of YSL did rise in that year.

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< p > so, these astronomical labels finally give consumers a kind of unreal psychological satisfaction, and finally make the suit which sells for 3000 dollars is the sky high price Barry Schwarz. In addition, it can not help but float up its own acceptable psychological price. Finally, he chooses a suit that sells for only 800 dollars.

To do this analogy, consumers who buy LV key chains, Chanel sunglasses or Prada wallets are not hard to understand. They have thus proved the rationality of high prices.

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