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    Luxury Brands In Europe Continue To Rise In Korea

    2014/6/10 13:16:00 59

    South KoreaLuxury BrandsRising Prices

    < p > the world is < a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > a target= "_blank" href= "_blank".

    < /p >


    < p > now, the Korean won has appreciated, and the a href= "http://www.91se91.com/news/index_p.asp" > Korea "/a" has increased import capability, and many imported goods have become cheaper.

    However, high-end luxury goods are not affected.

    Despite the recent rapid appreciation of the Korean won against the euro, the price of European luxury brands remains spiralling upward trend.

    < /p >


    < p > < /p >.


    < center > < img border= "0" alt= "" align= "center" src= "/uploadimages/201406/10/20140610025914_sj.JPG" / > /center >


    < p > < /p >.


    < p > industry experts believe that these luxury brands deliberately raise prices in order to maintain the image of their brands.

    This is a so-called "prestige pricing" strategy. The higher the price, the higher the consumer will think the goods are, so they are more willing to pay the bill.

    What these consumers buy is a sense of dignity to distance themselves from people, not just commodities themselves.

    < /p >


    < p > Korea Times reported recently that the price of Chanel, Gucci, LV and other a target= "_blank" href= "http://www.91se91.com/" > designer /a > brand is still rising in Korea.

    < /p >


    < p > these brands still adopt the high price strategy and think that the higher the price, the more high-end brands they will be in Korean consumers.

    < /p >


    < p > at present, the exchange rate between the won and the euro has dropped to below 1400 points.

    Nevertheless, LV raised its handbag and wallet price by 7% while another French luxury fashion brand Hermes raised its price by 5%.

    The price increase of Chanel, Ferragamo and Prada is no less than 2%.

    These brands say the rise in production costs has led to a rise in retail prices.

    < /p >


    (P) since the entry into force of the free trade agreement signed between the Republic of Korea and the European Union, tariffs on imports of goods from South Korea (including these luxuries) have been completely lifted or greatly cut, but the price of European luxury goods is still rising.

    < /p >


    < p > data from June 2011 to May 2012 collected by Korean consumer organizations show that the price of 360 high-end luxury brands such as LV, Gucci, Burberry, Hull mays and Prada has never declined after the ROK free trade agreement has entered into force.

    < /p >


    < p > experts say the price strategy of high-end brands reflects the nature of well-known brands and Korean consumers.

    "Luxury brand market is not sensitive to price.

    Consumers are willing to pay for the image effects brought by high-end brands. They do not buy goods themselves.

    In this case, production cost or exchange rate is not a decisive factor in determining their prices. "

    An expert from a consulting organization said.

    < /p >


    < p > these luxury brands do not believe that price cuts can increase their revenues, but instead adopt a strategy called prestige pricing.

    The so-called reputation pricing strategy is to deliberately raise commodity prices, create a high quality, big brand impression, so that consumers have a good sense of these goods.

    < /p >


    Less than P, however, this strategy will not always play a role.

    Over the years, Koreans are buying luxury goods, and now they have more and more channels to buy luxury goods, either directly from the Internet or from parallel importers.

    < /p >


    P, a French luxury brand manager who does not want to be named, said that the exchange rate will not change their prices because the exchange rate fluctuates very frequently.

    "The price of commodities is determined by the Paris headquarters, so we will not adjust the price according to the change of exchange rate."

    He said.

    < /p >


    < p > prestige pricing is a kind of psychological pricing. Some famous brands or famous enterprises deliberately set prices to integer or high price, limiting potential buyers and creating a high quality impression, becoming prestige pricing or integer pricing.

    Products that are not easy to identify are most suitable for using this method, because consumers have the psychology of advocating brand names and often judge the quality by price.

    < /p >


    < p > the drug of Bayer company and Tongrentang in Germany, although a href= "http://www.91se91.com/news/index_s.asp" > price < /a > higher, but still better than the general low-priced drugs.

    When Procter & Gamble introduced Head and Shoulders into the Chinese market, it had the highest price in the same kind of goods, but it turned out to be a best seller.

    < /p >

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