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    What Makes Chanel Lower Prices?

    2015/3/24 19:03:00 26

    ChanelPrice CutsFashion Brands

    Things obviously changed. According to the official saying, Chanel's price reduction is carried out on a global scale. Not only did China lower its price, but also the prices of Hongkong, Korea, Vietnam and Russia were cut simultaneously. At the same time, the European market will increase its price by about 20%, and Japan and the United States will remain unchanged. Such an increasing or decreasing layout shows that Chanel has not been able to continue to operate emerging markets dominated by China in accordance with previous logic. This and exchange rate More importantly, the environment is different.

    The euro's exchange rate against the renminbi has recently fallen to the lowest point since the birth of the euro. For a long time, the Chinese have been accustomed to the euro price of more than eight yuan. Now, with the help of the European Central Bank, it has seen a good thing that six and a half dollars can be exchanged for Euro. It is positive to study and travel in Europe, and the relative price of luxury goods has changed drastically. Originally, Chanel and Van Cleef & Arpels were much more expensive than France. Now the euro has been hit by twenty percent off, so it will be very worthwhile to sweep goods in Europe. Chanel rose and down in two places to control this factor.

    It should be noted that the adjustment of Chanel is not intended to maintain the difference between domestic and foreign currencies before exchange rate fluctuations, but is intended to narrow. The cost of customs duties and rent seems to have vanished mysteriously now. So we can not understand the logic of the Swiss table price adjustment when we understand the Russian Ruble's devaluation. Chanel Act.

    Mystery is still native to emerging markets. At present, the global economic structure can almost be said to be the only one in the United States. As China's leading emerging market is still struggling to break through in the mire of the post financial crisis era, the United States has almost recovered its vitality and opened the cycle of appreciation of the dollar. This, in turn, leads us to invest our money in the United States to take advantage of this economic recovery. As a result, capital outflows in emerging markets and companies fled. China The current situation is probably here. Unlike Europe and Japan, these deep private economies, the downside of China's economy has led to a downturn in consumer spending.

    As a result, urban white-collar workers have to calculate whether they are less "defeated". Although the Internet industry is thrived, the manufacturing sector is not working as a whole, and the financial sector is under considerable pressure. Central enterprises took the lead in reducing salaries from the top, and the real estate base for building wealth has lost quite a shine. In this situation, the income expectation of the urban middle class is relatively gloomy. In addition, anti-corruption has severely damaged the gift giving culture. The netizens' "human flesh" technology and inspection teams at all levels have made countless "cousins" and "table Emperors" lose their courage.

    In this situation, the sales of luxury goods in China were greatly affected, and the annual negative growth for the first time in 2014. The global luxury brands were also severely affected. Chanel, long and other brands are even eyed by the capital market and become more likely to be acquired luxury brands. In this sense, Chanel's domestic price cuts will indeed trigger many brands to follow up. The panic buying of Chanel stores in Hongkong, the Bund and other places will surely impact the pricing ideas of luxury companies in China.


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