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    French Luxury Goods Maker Hermes Plans To Raise Prices Next Year.

    2013/9/2 20:50:00 31

    LuxuryBrandHermes

    < p > French luxury goods company Hermes plans to raise its price next year.

    According to reports, Hermes has announced the group's first half performance in the past few days, saying that the group plans to raise prices next year, and the price rise of raw materials such as silk and < a target= "_blank" href= "http://www.91se91.com/" > leather < /a > is partly due.

    < /p >


    < p > the latest performance shows that Hermes sales increased to 1 billion 767 million 200 thousand euros in the first half of fiscal year 2013, an increase of 11% over the same period last year, and net profit increased by nearly 14% over the same period last year.

    Among them, apart from Japan, the Asia Pacific region maintained growth momentum, an increase of 17% over the same period last year, and Hermes said that the Chinese market continued to show strong vitality.

    However, sales of Hermes watch business fell by 1% in the first half of this year due to the general downturn in the watch industry.

    < /p >


    While P announces its performance, Hermes has announced that it will raise its price next year.

    Hermes's rivals, such as Louis Vuttion and Gucci (Gucci), have started to raise prices earlier this year.

    < /p >


    Like P, Hermes will attribute the price increase next year to the increase in raw material costs, and this will ease the impact of exchange rate fluctuations on brands.

    For example, the yen weakened against the euro, while the Japanese market accounted for almost 1/5 of Hermes's global sales.

    Similarly, since July this year, Louis Weedon has raised the average price of handbags, wallets and other leather products in the Japanese market by about 8%, in order to counter the weaker yen.

    < /p >


    < p > in fact, the price base of luxury brands based on the change of the euro exchange rate is the rule of its own. This is also a normal price adjustment, and it is an opportunity for luxury brands to adjust prices before new products and new products fall and winter.

    < /p >


    < p > Michel EMBA, director of MBA and EMBA of Marseille School of Commerce in France, told reporters in the first financial daily: "such a price increase will happen every year."

    < /p >


    Normal price increases every year (P) have caused luxury goods to accumulate larger price gains over the past few years.

    Statistics from the US Bureau of labor statistics show that the price of luxury goods has risen by 60% over the past 10 years.

    The reasons for the price increase include: the cost of raw materials is increasing; the discount of the season also leads to price increases; more and more new millionaires emerge.

    < /p >


    "P," industry professionals in an interview with our reporter analyzed: "inflation, raw materials and labor costs rise are all objective reasons, price increases for luxury brands is also a strategy to maintain its high-end image."

    < /p >


    < p > Lou Jiwei, Minister of finance, mentioned in the report to the Standing Committee of the National People's Congress that the next step is to expand the scope of the consumption tax levy, and include some products that seriously pollute the environment, over consume resources and some high-grade consumer goods into the scope of Taxation, and adjust the collection tax and tax rates of consumption tax.

    In the industry view, this will also become a luxury brand in the near future, one of the reasons for the price increase.

    < /p >


    < p > for the future, He Bin, director of Italy menswear luxury brand Kiton, said in an interview with our reporter: "real high-end, high quality luxury goods will continue to rise in price."

    < /p >


    < p > luxury prices continue to rise, which also makes the market "buy luxury goods to protect value", but the industry does not agree: "luxury goods are basically mass production, which greatly reduces the past specificity and scarcity of luxury goods. Only a very small number of antique luxury goods still have value preservation. Nowadays, luxury goods circulated in a larger audience are basically not having value preservation."

    < /p >

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