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    Price Reduction Of Luxury Goods In China May Become A "New Fashion"

    2015/3/25 17:02:00 220

    Luxury GoodsChanelChinese MarketFirst-Line Brands

    Always only increase the price but not reduce it luxury goods The price of "brand" has dropped in the Chinese market. Although the recent price adjustment of international top brand Chanel has caused a craze in Hong Kong, Beijing and Shanghai stores, many consumers have doubts about its high price system. The reporter of Yangcheng Evening News, who went to Hong Kong to interview, found that many luxury industry insiders believed that the price reduction of Chanel had a lot to do with the negative impact of the market consumption environment, and it would also bring about a trend of price reduction in the Chinese luxury market as a whole, thus the business opportunities of other high-end consumer brands would slowly emerge.

       Is Chanel willing to reduce its price to take risks?

    As an international first-line brand, Chanel The price strategy that has always been adhered to is to increase the price. According to Chanel's previous records, the reporter found that the price of Chanel increased twice in 2013 and still increased once in 2014. Why did the price of the Chinese market suddenly decrease this year?

    Some analysts believe that Chanel's round of Chinese market The reason for adopting different price adjustment strategies is that, on the one hand, the euro continues to depreciate, and on the other hand, sales in the mainland market continue to decline, while most Chinese consumers spend abroad.

    "The classic Chanel models in the European market are out of stock for a long time, which makes local consumers have a great opinion." A senior businessman told reporters that instead, in Hong Kong and the mainland, the classic models can be easily bought because the price is much higher than in Europe.

    It is also worth noting that China's anti-corruption actions in recent years have also made First tier brand Hit. "The sales of some luxury stores have declined by more than 50%. If there is no price adjustment, I am afraid that the trend of closing stores will soon emerge," said many luxury marketers.

    "But the price reduction of luxury goods often has a certain impact on their own positioning." In the Chinese market, with the development of the economy, more and more people are willing to buy luxury goods, but others cannot afford them. Once the threshold is lowered, the temptation will be weakened, and some fans of the brand will even choose other brands with higher threshold.

       Chanel is not the only one to cut prices

    So, will Chanel's price adjustment drive other luxury prices? The answer is almost yes.

    The reporter's survey found that the huge gap between the prices of many luxury goods in Europe, America and China still exists. For example, a classic LV bag costs 29000 yuan in Guangzhou Taikoo Hui, more than 19000 yuan in Hong Kong, and more than 12000 yuan in Paris, France.

    Chanel is not the only luxury brand that can't sit still and choose to cut prices. It is revealed that Dior has recently cut the prices of some classic models, including the MissDior series, by 10-20%.

    Even so, this year's DIOR new canvas bag in Guangzhou Taikoo Hui is priced at 17500 yuan and 14800 yuan in Hong Kong. The price in the mainland is still higher than that in Hong Kong.

       trend

    Global price integration of luxury goods

    "With the development of global economic integration, the global price integration of luxury goods is also inevitable. Chanel has always been the vane brand in the luxury industry, and its action is also releasing a signal: Chinese people can buy luxury goods at reasonable prices without going abroad." Zhou Ting, president of the Wealth Quality Research Institute, said this to the media before.

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