Luxury Goods Are Rising: Selling 10000 Yuan, Raw Materials 500

General merchandise is on sale.

It always stimulates demand with price increases, but now it is a bit of an immovable means.

In March 18th, Chanel announced that the price of products sold in Europe will be raised in April 8th, while the price of Asian region will be lowered, and the price difference in the global market will eventually be reduced by around 5%.

Among them, the price of mainland China has been reduced by about 20%.

So people began to wonder why the luxury package of tens of thousands of yuan would be so expensive. 20 days, the industry analyzed the price composition of luxury goods, raw materials accounted for only about 5%.

Manufacturers are trying to maintain low cost.

Many analysts believe that over the past 10 years, the price of luxury goods has risen almost every year, and the overall increase has exceeded 60%.

However, the reporter's visit to Ji'nan luxury shopping center, the shopping mall and the Ginza mall, gave the reply that they had not received any notice of price reduction.

"Luxury goods are so expensive that the cost of raw materials is only a small part."

Jinan City

Zhang Qingwei, President of the industry association, said that the World Luxury Association had released a data account for only about 5%, in other words, ten thousand yuan of luxury bags and materials cost up to 500 yuan.

For example, Partizio Dimma, President of Italy luxury brand Gucci, broke the news. The cost of Louis Weedon (LV) canvas bag material is 11 euro / meter, which is only 73 yuan, while the cost of Gucci bag material is relatively high, which is only 167 euro / meter, which is equivalent to 1102 yuan.

Zhang Qingwei said, as for those hardware pendants and PVC resin materials, the price is even cheaper. The former mass production is at most tens of dollars, and the latter is only ten yuan per kilogram even the best quality.

The company has also publicly stated that luxury manufacturers are trying to maintain lower costs and avoid waste.

You think it's worth it? Spend $10000 on bags, 5500 of which is spiritual enjoyment.

In the interview, Zhang Qingwei has repeatedly stressed that it is unscientific to measure luxuries purely with the cost of raw materials: "there are two ways of pricing goods, one is the cost pricing method frequently touched by people, the other is the value pricing method, and the luxuries are suitable for the latter. Its real value lies not in the product itself, but in the accumulation over the years.

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For example, Louis Weedon, in 1877, Russian crown prince Nicola and Spanish king, twelve, were their users.

Think about it, and customize the box for the king. This has made it a truly world luxury brand. Consumers use it more for a spiritual satisfaction. The price of 5 figures or even 6 digits can become a symbol of status.

The data released by the World Luxury Association show that the added value of luxury brands generally accounts for about 55% of the selling price. In other words, the ten thousand yuan package has 5500 yuan for the enjoyment of mental enjoyment, which is also the profit of enterprises.

Zhang Qingwei said that 55% of the profit level has far exceeded the industry average, so the definition of luxury goods by "profiteering" is not excessive.

The remaining 40% are all kinds of costs, such as production and processing costs account for 6%, advertising and public relations activities cost about 5%, and flagship stores account for 3% of all gold lots in cities, with labor costs accounting for 6%, and government tax, consumption tax and partial value-added tax account for 20%.

In fact, luxury pricing is a psychological game between businessmen and consumers. You think the value is worth it.

Who buys luxury goods? Chinese have bought nearly half of the world's luxury goods.

According to the China luxury goods report, the global luxury market in 2014 amounted to $232 billion, of which Chinese consumption amounted to US $106 billion, which means they bought 46% of the world's luxury goods.

Shang Pu consulting industry analyst pointed out: in 2014, Chinese consumers spent 25 billion dollars on local consumption, accounting for 24% of the total, and overseas consumption reached 81 billion dollars, accounting for 76% of the total.

The younger generation, especially the rich two generation, is totally different from the previous generation. It has a strong vanity, a reputation for fame, a love of comparison, and an economic strength to become the main consumer of luxury goods. Secondly, the wealthy who show off their wealth and show their identity, because luxury is a symbol of success and affluence.

There are also some business people who cater to the "unspoken rules" gifts, but only because of the "anti corruption" culture, the group is reduced.