How High Is The Added Value Of Luxury Brands?

Luxury brands in Italy

I has recently been exposed to costs of only a few hundred dollars.

The cost of being a net writer is 200-400 yuan, setting off a controversy over the value added of luxury goods.

Some people say that pricing and cost are too much of a misunderstanding. Pricing depends on market supply and demand. Some experts believe that the seller's market of luxury goods has been shaken. The controversy about cost price is implying the arrival of buyer's market.

The "low cost" of luxury goods has shown that the cost of the Gucci Italy factory is 24 euros, while the domestic Internet writers judge from the experience of their "factory workers" that the cost of LV is only 200-400 yuan, and the cost of hardware is 30-50 yuan. "LV"

One stone stirred up waves, and the industry began a heated debate on the value and added value of luxury brands.

Reporters learned that the calculation of the cost of luxury goods includes raw materials, processing costs, brand value, public relations and marketing costs, channel costs, tariffs and government taxes.

In addition, some people in the industry say that some celebrities of luxury goods have spent a lot of money. Some of them account for about 50%-60% of the price. Besides, the cost of management is not decimal.

There are different opinions on whether the management mode of luxury goods is reasonable.

Financial analysts publish in public on the Internet that real cost accounting is extremely complex, and prices depend on factors such as supply and demand, consumer preferences, and price of complementary products.

In this regard, Zhou Ting, President of the luxury goods field and President of the Institute of wealth quality, believes that the "brand value" of the luxury goods was previously recognized and bought by consumers. The premise is "information asymmetry". Therefore, the seller has absolute pricing power, and whether the added value is "super high" or "too high" can not be given the absolute standard.

Zhou Ting believes that from the perspective of economic principles, the past management and pricing models of luxury goods are gradually disintegrating, and the seller's market position and voice right of luxury goods have been shaken.

Since the second half of 2014, a lot of luxury goods formerly known as "hard luxury" by consumers have begun to appear surprisingly discounted.

This is known as "disguised price reduction" by the industry.

Ignoring service and quality is the most common condition in China's luxury market today.

When consumers do not buy, brands can only be forced to discount.

"Discount is equivalent to a price reduction strategy."

Zhou Ting said that this is the gradual process of luxury prices to adapt to the psychological price of consumers.

Even if domestic luxury goods are discounted, consumers still prefer overseas shopping. The price balance of luxury goods at home and abroad will be the trend of the times.

"The era of luxury goods raising prices and maintaining brand image has passed, and can no longer go back."

Zhou Ting said that in the future, there are only two ways to choose luxury goods: one is to voluntarily reduce the price and return to the reasonable space for consumers to accept psychology; the second is to continue to passively discount and stimulate consumption.

But the second choice will undoubtedly damage their image positioning.

Zhou Ting judged that consumers will gain the upper hand in the field of luxury goods in a year.

Many consumer pricing models have emerged in many areas.

The high-end consumer market will be popular in the future.

Luxury as

Only if they have special commemorative meaning and quality, will the super high added value be recognized by consumers.