Luxury Brands Are Tough Days.

According to the latest sales figures released by PRADA, as of January 31, 2015, PRADA's initial sales amounted to 3 billion 552 million euros, down 1% from the current fixed exchange rate. The Asia Pacific region is the hardest hit area for PRADA's decline. According to the current exchange rate, the sales of PRADA in fiscal year 2014 dropped by 5% compared with the same period last year, and the decline mainly came from Hongkong and Macao.

"Past Luxury goods In China, the price is high, partly because of tariffs, and the other reason is the high demand in the Chinese market. Now the situation has changed a lot, so luxury brands will make changes in this situation. An industry executive told reporters that after Chanel's price adjustment, other luxury goods will soon follow up and narrow the price gap at home and abroad.

Patek Philippe (PatekPhilippe) took the lead in Hongkong in February this year, sounding the battle price for luxury goods, plus the continuous decline of the Swiss franc, and intensified competition from other industries. Swiss Watch Also can not withstand pressure starts to depreciate. LVMH's watch TagHeuer began to cut in early March. retail price The average decrease was 10%.

Richemont, which owns more than a dozen famous brand watches, has also been reported on sale in Hongkong recently. Insiders told our reporter that Vacheron Constantin had never allowed agents to offer discounts in the past, but the sales volume of luxury goods industry has been very unsatisfactory last year. Jaeger Le Coulter also said it would formally reduce its price from May this year.

Dior, also known as the female handbag brand, has started to cut prices in two series in Hongkong and the mainland in early March, of which MissDior New Mini Handbag has been reduced from HK $29000 to HK $26000. Although the price reduction is far less than that of Chanel, a salesperson hints that Chanel is down, can Dior be far behind?

In some industry circles, the brand has always taken the high import tariff as the reason for the regional price difference. This is only an excuse. The main reason for the regional price difference is that the brand is intending to overestimate the price of the product in the primary market. In the increasingly difficult and increasingly competitive market of luxury goods, the price of traditional brands such as LouisVuitton, Louis Weedon, Hermes (Gucci), Gucci (Gucci) and Prada (Prada) has been raised to zero. The good times of selling sales through price increase have ended. Luxury brands must lower prices to win more consumers.