Cost Rise As An Excuse For Rising Prices Of Luxury Goods.

< p > in fact, the regular increase in the price of luxury goods is an unwritten rule in the industry. The price is adjusted one or two times a year in spring or at the end of the year, increasing by 3% to 5% each time. The annual price rise of luxury goods seems to have become an inherent brand strategy. Statistics from the US Bureau of labor statistics show that the price of luxury goods has risen by 60% over the past 10 years. But this is the third time this year. The first two rises were at the beginning of this year and April this year. < /p >
< p > for most reasons, most people attribute it to rising costs. < /p >
< p > in view of the reasons for frequent price rise of luxury goods, every luxury official's official statement is to take into account the changes of < a href= "http://www.91se91.com/news/index_c.asp" > raw material < /a > exchange rate and so on, so we must raise the price globally. However, the pricing principle of luxury goods is never the same as that of general consumer goods. Luxury is beyond the traditional pricing thinking. Its primary task is to maintain the fundamental attribute of high price. The so-called "cost increase" of luxury brands is simply untenable. < /p >
< p > for the crazy price surge, the World Luxury Association has released the global pricing formula of luxury brands, taking leather goods, clothing, bags and other consumer goods as an example (excluding jewelry, watches, cosmetics and fragrances). The price of the Chinese market is: < /p >
< p > raw material 5%+ processing cost 10% (including design, finished products processing, transportation) + profit retention rate 45% (< a href= "http://www.91se91.com/news/index_c.asp" > brand pricing < /a > annual price increase) + advertising and PR activities cost 8% (year) + monopoly store annual expansion cost 6% (including commercial facilitation conditions) + human resources team cost 10% (annual) + import tariff, consumption tax, partial value-added tax and other comprehensive tax rate average 16%= China market retail price. < /p >
< p > industry insiders point out that the real reason why the a href= "http://www.91se91.com/news/index_c.asp" > luxury goods < /a > price rises is, on the one hand, on the basis of its operation strategy. The "high price" feature of luxury goods means depreciation under the exchange rate change and inflation economic situation, and also means the loss of supporters. On the other hand, luxury brands raise their rankings through rising prices, and then increase their prices before starving marketing. < /p >
< p > data show that European luxury goods have suffered "devaluation" in succession. The price strategy of European luxury group is very clear, that is, with the development of society, the brand's high value image has been retained. Once there are any factors that affect the shrinking of luxury brand image, the price of luxury goods will rise. If the price is not adjusted in time, it may lead to the tragic situation of Pierre Cardin and Montagut, and become an ordinary brand, and its image value is plummeting. < /p >
< p > in addition, some brands adjust prices to narrow the spread of products in Europe and Asia Pacific region, so as to guide consumers to spend more locally. Prada spokesman said that if the euro continues to be weak, in order to reduce the price gap with China, we may consider raising the price of products in Europe by up to 10%. Of course, we will not raise the price of products in the mainland of China. < /p >