The Origin Of Luxury Goods: Big Brands Come From Small Shops.

Today, 60% of the market share of luxury goods is controlled by 35 major brands, such as Louis Weedon, Gucci, Prada, Giorgio Armani, Hermes and Chanel. These brands have annual turnover of more than 1 billion dollars.

In fact, most of the luxury brands we like to talk about are created by the humble artisans in eighteenth Century and nineteenth Century for making exquisite handicrafts by the royal family.

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When Bonaparte and his family ruled France, modern luxury goods were born in France.

At the end of the nineteenth Century, the royal power declined, the bourgeoisie rose, the European aristocracy and the elite of the United States, such as the Vander Bill family, the Astor family and the Whitney family formed a closed circle.

Become their exclusive domain.

Luxury is an element of life belonging to the upper class. It is desirable to join a senior club or to have a famous family name.

Moreover, they are always produced in small quantities, usually custom-made, only to a very small number of customers.

Today, these companies still call the founder's name, but in fact most of them have been business tycoons.

And business.

Over the past 20 years, they have turned a single brand into a big brand known by billions of dollars worth of big companies and earth people.

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Reporters learned that Chanel is not the only price adjustment brand.

In 2014, LVMH's high-end watch brand, Yu Bo, Zhen Li Shi and Hoya, launched the banner of Hongkong and the mainland in the same price, hoping to activate the mainland consumer market by price advantage.

Previously, the price difference between mainland watches and Hongkong was between 10%~20%.

This seems to be out of line with the way in which luxury goods consistently play. Previous news has been that some luxury brand manufacturers would rather destroy some damaged products than sell them at a low price, so as to maintain the high-end image of luxury goods.

In the reporter's visit, a number of boutique staff also told reporters: "we never discount."

According to the scholar of consumer psychology, School of economics and management, Shandong University, for many luxury goods consumers, the price tag is not important, because discount will give customers a hint of quality, thereby reducing their brand image and affecting consumers' desire to buy.

The reason why Chanel has adopted different price adjustment strategies in Europe and the Chinese market is that the continued depreciation of the euro is on the one hand, and on the other hand, the sales in the mainland of China continue to decline, while most Chinese consumers spend overseas.

According to wealth quality statistics, in 2014, the consumption of Chinese luxury goods in the mainland was 25 billion dollars, down 11% from the same period last year. The proportion of China's luxury goods market in the global luxury market dropped from 13% in 2013 to 11%.

"Chanel Chanel has always been the vane brand of the luxury goods industry. Its move is also releasing a signal: Chinese people can buy reasonably priced luxuries without going abroad."

Zhou Ting, Dean of the Institute of wealth and quality, told the media.

Zhou Ting said, first of all, we should change the mentality of irrational consumption of Chinese people.

According to the data of University of International Business and Economics's Cheung Kee luxury Research Center, the proportion of luxury consumption expenditure in the mainland is too large, and the proportion of Western luxury goods consumption accounts for no more than 4%, while China's one hundred share is about 20%.

China is still in the initial stage of luxury consumption, and is a show off consumer.

This has prompted foreign luxury companies to "discriminate pricing", thereby pushing up the price of luxury goods in China.

In addition, the domestic sales policy is not perfect.

Although China has a large number of processing trade made in the mainland, such as some high-end clothing, but according to the current policy, these products must be exported after processing in China, and can not be sold in the Chinese market.