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    The Financial Crisis Has Brought Luxury Prices Up.

    2008/11/28 0:00:00 10236

    Extravagant

    According to the Rachel Dides and Istina Passaariello of the Wall Street journal, "in recent memory, luxury goods manufacturers have cut the prices of designer clothes, shoes and hats and handbags in the US market.

    "When the most extravagant consumers are starting to calculate carefully, the luxury companies, from Chanel S.A. to Versace SpA, and from istian Louboutin (famous designer shoes designer brand) to Chlo, are all overthrowing the motto of" luxury goods prices will not rise or fall "under the big industry.

    Most of the products sold in the United States depreciate by about 8% to 10%, but this behavior does not cause European boutiques to profit margins because the dollar's interest rate on the euro has increased by 28% since April.

    Luxury companies will not disclose the difference between their brands, but Louis Vuitton estimates a loss of 45 cents per yuan.

    In addition, Herm, s, Chanel, Vuitton and Versace all buy materials and make goods in Europe, so that they can earn more money than each budget from each bag or clothing, while luxury executives must draw the line at the time of price cut.

    Although $2000's bags and $700 stilettos are still expensive for most people, if the price is falling rapidly, it means that the brand concept has also dropped steeply.

    In the boom years, luxury companies always pretend that money is no problem for enthusiastic Fans.

    Even in today's situation, Louis Vuitton still wants to hold the price, in order to prove that customers will still support them in spite of the question of raising prices. This year, they doubled the price list by an average of 10%, but sales continued to rise.

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