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    Chanel'S China Price Cuts Queuing Up

    2015/3/21 9:42:00 38

    ChanelChinaPrice Reduction

    Recently, Chanel announced that the price of products sold in Europe has been raised from April 8th, while the price of Asian region has been cut down, and the price difference in the global market has finally narrowed around 5%.

    It is understood that Chanel's European price rose by 20%.

    China

    The mainland dropped by 20%.

    Yesterday, a large number of customers queued up in front of Chanel store in Shanghai Golden State shopping center.

      

    Chanel

    After the price cut, there was a stir in the domestic consumer market.

    Shanghai

    A shopping mall Chanel store appeared in a bustling scene of queuing up.

    The picture shows a large number of customers queuing up in front of Chanel store in Shanghai Golden State shopping center in March 19th.

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    Chanel's sales staff stressed to reporters that the price adjustment made by the brand was only targeted at 2.55, 11.12 and le boy three handbags.

    It is understood that the Chanel flagship store of IFS international financial center in Chengdu received official notification of the company's price adjustment on the evening of 16 this month, and the three specified handbag also began to implement the new retail price on the 17 th.

    As to whether other luxury brands will follow up the price cuts, Zhou Ting believes that Chanel's direct announcement of the price reduction is very brave compared with the previous various "discount" of luxury brands. Its demonstration role in the industry is bound to form an industry trend.


    Zhou Ting pointed out that Chanel and LV never enter otrice, but do not discount or even increase their prices every year. They are very strong in protecting their brand image.

    She also mentioned in particular that "the price reduction of Chanel should be the biggest shock to LV, and even a little" challenge ".

    In the luxury industry, global price integration is an inevitable trend, and Chanel's approach will accelerate this process. "

    According to Zhou Ting, with the formation of the "Chinese consumer market", luxury brands will start complacent, in Paris, in London, in New York, in Milan, in Seoul...

    There are queuing Chinese consumers everywhere. Sales of luxury brands in Europe and America are skyrocketing. Some of the brand's 70% business comes from Chinese consumers.

    But soon they found that it was abnormal.

    "First, the stores in the Chinese market have become billboards and experiential shops, and sales are very bleak; second, sales revenue has increased, but operating profits have declined significantly; third, the brand has been developing in the Chinese market for more than ten years, invested a lot of manpower and material resources, and opened a large number of stores, operating costs have been increasing, but the market is hanging upside down.

    If the price of the Chinese market is still high, the ultimate victim is the brand itself.

    Therefore, we must let some of the consumption flow back to the Chinese market, readjust the price system, and make the brand channel reinvent, pricing strategy and customer management form a benign global operation mechanism.


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