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    European Luxury Brands Continue To Raise Prices In Korea

    2014/6/24 22:29:00 23

    South KoreaEuropean Luxury BrandsLuxury Goods

    < 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 > 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 > Hugo net has learned from the recent reports of Korean media that Chanel, Gucci, LV and other a target= "_blank" href= "http://www.91se91.com/" > designer "/a" brands still keep 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 the price of its handbag and wallet by 7%, while another French luxury fashion brand Hull Metz 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 strategy of prestige pricing is to deliberately raise the price of goods, creating an impression of a high quality and big brand, which will make consumers feel good about them.

    < /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 a href= "http://www.91se91.com/news/index_h.asp" > luxury brand < /a > managers do not want to be named. 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 > Hugo net understands that 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 >


    The pharmaceutical products of Bayer company and Tongrentang in Germany, P, are still selling well than ordinary low priced drugs, though the price is higher.

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

    < /p >

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