Luxury Brands To Boost Performance: Price Adjustment And Crossover

< p > although the global economic recovery has been slow in the past year, the downward trend of luxury goods is obvious, but it has not affected their habitual price rise.

Beginning in mid April 2014, Chanel (Chanel) increased the price of Classic Flap series medium and large price by 450 euros; the 2.25 series rose by 450 euros per model; the Le Boy series medium price rose 300 euros, or around 15%.

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< p > not only is Chanel, but most of Cartire's products have also implemented price adjustment since April 21st, and the price range of different products is different. The price increase ranges from 6% to 10%. Ferragamo includes "a href=" http://www.91se91.com/news/index_c.asp "> dress" /a ", leather products and shoes and so on. Some products have also been raised in April 18th, and the shoes have risen from several hundred yuan to 1000 yuan.

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< p > the industry believes that under the global economic downturn, luxury brands have their brand image to maintain and guarantee their high profit margins. On the other hand, to boost their performance, luxury brands are also delineating consumer loyalty and brand image through cross-border activities.

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< p > < strong > raise the price stable image and high profit < /strong > < /p >

< p > < a href= "http://www.91se91.com/news/index_c.asp > > luxury brand < /a > official comment on price adjustment will generally be attributed to a series of operating costs such as raw material prices, labor costs, logistics and opening stores. In Beijing, Li Zhiqi, chairman of the future marketing consultancy group, seems to believe that the price rise of luxury brands has also ensured its high profit margins under the global economic downturn and declining sales.

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< p > "as a luxury," a href= "http://www.91se91.com/news/index_c.asp" > price < /a > is undoubtedly one of its more important forms, "Wu Yanhuan, an analyst at Champ consulting, told reporters." luxury goods need constant price adjustment to maintain brand positioning and image. So the speed of luxury growth has slowed down in the past two years, but it has not affected its customary price rise. "

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< p > "value preservation and value added" are the positioning of luxury brands for themselves.

Wang Ying, a partner in PWC's China retail and consumer goods industry, told reporters that the logic behind the rise in the price of luxury brands is that the growth of their brand prices should exceed the inflation rate and exceed the depreciation rate of currencies.

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< p > in her view, some classic brands of luxury brands are not only consumer goods, but also collectibles and investment products. The price rise of luxury brands is also a way to catch consumers' buying and selling mentality, and let consumers feel that buying such expensive things today is more cost-effective than tomorrow.

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< p > "luxury habitual price increase is also a marketing tool". In Wu Yanhuan's view, high price in luxury sales market will not hinder sales, but will stimulate consumers' desire to buy and sell.

Consumers of luxury goods are not sensitive to price, and even the increase of 5%~10% will not affect buyers' purchasing behavior.

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< p > Pedraza, President of the luxury Research Institute of New York Research Institute, thinks that the other intention of increasing the price of old luxury goods is to distinguish between their own products and cheaper entry level luxury goods, hoping to maintain "high profile" to maintain their image.

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< p > luxury brands originally focused on traditional clothing and footwear products are trying to cross the border and further lock in high-end consumer groups.

The British luxury goods giant Burberry group announced that it will enter the luxury skin care market in 2015, and Italy luxury brand Gucci has announced that it is secretly developing Gucci's first cosmetics series with Procter & Gamble, and is scheduled to go public in 2014. The news has been confirmed by Gucci recently.

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< p > the extension of larger span is towards service brand and sales life style on the other hand.

In March of this year, Prada, a well-known luxury brand, announced that it had successfully acquired 80% stake in Angelo McKay limited, which owns the Mackey pastry, the Milan dessert brand.

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< p > in fact, luxury brands are extending to all fields of life.

In Seoul, South Korea, Hermes opened a coffee shop with brand branding from architectural style to product details. Gu Chi also opened the same brand coffee shop in Italy, Florence, Japan, Tokyo and Shanghai in China. Chanel has a restaurant called Beige in Tokyo, Japan.

In addition, Versace, Bvlgari, Armani and other brands in Australia, Gold Coast, Bali Island and Dubai and other famous resort hotels.

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< p > old brand luxury goods cross-border development, a luxury industry analyst told reporters analysis, partly because of the slowdown in the performance of traditional clothing and footwear products, the brand needs to improve performance and brand image through other fields; on the other hand, these luxury brands often have regular customer groups, and expand categories to delineate and enhance consumer loyalty, because high-end consumers are no longer satisfied with buying only leather goods and clothing products, but need more complete supporting services.

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