Luxury Anti Market Strategy To Enter The Market

In the field of luxury that the world is experiencing the winter of success, it is also facing a sharp shock in the foreign exchange market.

A few days ago, there was news that as the euro continued to weaken in the past six months, some luxury brands would raise 10%-20% in the euro area to hedge against the impact of the fall in exchange rate on their performance.

However, this move is also considered to be a reverse operation strategy in the depressed market.

European price increase to avoid exchange rate risk

For the rumors of rising prices, the reporter called the LV brand PR director of LVMH group, headquartered in Paris, France, but the other said it was not aware of the situation in Europe.

In fact, the euro continued to weaken in the past six months. At the end of January, the euro went straight down. The exchange rate fell to 6.9 from 7.5 to 7.3, and fell to 1.1088 against the dollar, the lowest since September 2003.

Reporters found that many

The euro zone has been raising prices.

Prior to this, Swatch group has announced in its latest 2014 fiscal year earnings report that it will adjust the price of 5%-7% to some of its brands in the European region this year to compensate for the impact of the Swiss Franc boom on group revenues; Rolex Rolex, Patek Philippe Patek Philippe in Japan, and Cartier Cartire have also raised prices in the euro area.

Analysts believe that the luxury price increase is mainly considering the impact of hedging exchange rate fluctuations.

As the most concentrated market of luxury brands, European luxury stores are a favorite shopping destination for Chinese consumers and buyers.

Take a luxury unit price of 1200 euros for example, a year ago, it would take 10 thousand and 200 yuan to buy, but now only 8280 yuan, saving nearly 2000 yuan.

As a result, the number of Chinese consumers and buyers who go shopping in Europe has increased significantly, and the profit margins of luxury brands in Europe will drop further.

Domestic sales are now super low discount.

Besides,

The brand will conduct regular price adjustment every February and March, but the price increase will be around 10%.

For example, LV (Louis Weedon) will raise the price of 3%-5% every year.

The 10%-20% increase in this rumor is rare.

Zhou Ting, director of the luxury goods industry and President of the Institute of wealth quality, believes that although the brand is often explained by raw materials and labor costs, the price raising policy of luxury brands aims at strengthening the impression of brand value and maintaining its high-end image in the minds of consumers.

On the other hand, on the other hand, the domestic luxury brands have recently emerged as an unprecedented low profile promotion.

Take Coach as an example. On Friday, Saturday, two, it will be the 2 sale of VIP guests in Beijing's Yansha outlets. The sale of luxury discount shoes in Shenyang is only 600 yuan, and the intensity of discount is very rare.

Prior to this, LVMH group announced the injection of domestic commercial real estate business sand boat to force outlets sales channels.

With a high price and a low price promotion, the paradoxical luxury marketing is thought-provoking.

Price strategy is to create "super value" atmosphere.

Insiders pointed out that this part of the luxury brands in the euro zone price increase and domestic low-cost promotions, or the use of brand sales to counter sales, and this for luxury brands, both to ensure that the brand premium image, but also in a downturn in the market environment to achieve sales, kill two birds with one stone.

For luxury goods with high premium, the psychological factors of consumers often play an immeasurable role in consumption.

The brand's use of raising price strategy creates the impression that the price of products is rising again in the consumer. At the same time, low price promotion can be made in Ortles and other channels, so that consumers can have an excessive consumption psychology and achieve the purpose of stimulating sales.

According to Bain's annual report on China's luxury goods market, China's luxury consumption in 2014 was 1% lower than that in 2013, which is China.

For the first time in eight years, it fell.

And LVMH group, Kai Yun group, the peak group and other major luxury group's earnings report showed a declining trend of growth.

The industry believes that promoting sales by raising prices is the choice for luxury brands to break through sales bottlenecks in a complex market environment.