Is Chanel'S Price Cut Because Of The "Gray Market"?

In the past, the price of luxury goods in China was much higher than the local price due to exchange rate, logistics, and many other taxes.

Take Chanel as an example, the same handbag is bought at home, which is about 40% higher than that in France.

The price adjustment statement issued by Chanel not only lowered the selling price in China, but also raised the price of the European region, which reduced the difference between the two to about 5%.

This is the first luxury brand to respond to the increase in the price gap between China and Europe.

From the Swiss Franc to the euro, the impact of the devaluation of European currencies on the luxury industry is undoubtedly enormous, at least in the circle of friends.

Purchasing, Hai Tao and so on, although it is a slit business, it can bring great profits.

It has accounted for about 30% of China's luxury consumption channels, concentrating on watches.

And jewellery and so on do not need to measure the size of the category, and the mainland watch market is a large-scale depression.

Such a situation is not what the brand wants to see.

In an open letter, the chairman of Patek Philippe watches said bluntly: "there is no reason to sell Patek Philippe watches in a region much more expensive than in other places.

For local customers, this is unfair, and it is more likely to nourish the gray market in the middle. "This gray market is composed of individual purchasing, Taobao shops and a large number of high imitation and goods, which is not related to the luxury spirit.

Market.

Price is always the biggest motivation to attract customers into luxury stores.

But at the same time, this change also gives the brand an opportunity to lead customers to feel the unique experience of store space design and atmosphere, to provide customers with a long-term and thoughtful service, so that customers can better understand the spirit behind the brand and the image they want to shape.

Before Chanel, many brands tried to revive the strange Chinese market in other ways.

Burberry, L'OCCITANE, Estee Lauder and so on have set up flagship stores in Tmall, and Alibaba has been working very hard to crack down on these brands on Taobao.

But this has little effect.

Everyone is surprised to buy a Burberry on Tmall, though it doesn't make any difference with a baby shop named Taobao, which is known as "overseas students earn money for making tickets".

Purchasing is a private act, and consumers approve of the inappropriateness of this behavior. However, the brand entry to Taobao basically destroys its image as "luxury" -- your lifestyle, brand culture and quality service, although I do not want to pay 40% more for it. However, I agree with you that because of this, luxury goods become different from ordinary bags.

Luxury goods are expensive, but not only about money.