Wang Xiaoran: Chanel'S Price Reduction Is Actually A Marketing Strategy.

Since March 18th, Chanel announced that China has cut prices in Europe, it has listed the headlines of every big print media, websites and news WeChat in those days. Anyone who doesn't mention Chanel will feel isolated from the world.

Even the metropolitan newspapers have produced a full page scale to carefully observe the past and present of this brand action.

No matter what it means, the marketing of Chanel has done or is about to achieve:

First, Chanel is not known for advertising expenses.

Luxury goods only rise in price but not in price. However, such a large span is the opposite of the core target customers, high-income but not rich potential target customers, and non target customers who look up to the stars. They all have a clear understanding of Chanel brand in a very short time.

This is a very important foundation for the brand's future sales decline in China, as well as long-term training for consumers, and it does not cost a penny.

Two, in the short term, it will stimulate consumption greatly.

Shanghai has queued up for a lot of money, and many classic items will soon be out of stock.

Chanel has never seen in the Chinese market before.

In the 2012 fiscal year, the total sales volume of Chanel increased by 26% compared to the same period last year, but dropped to 8.5% in the 2013 fiscal year.

Chinese consumers buy luxury goods 67% overseas.

Why? Because there is a price gap, no price difference, China's so good location open shop, there will be no income.

Three, stand out in the competition of luxury goods.

The first person to eat crabs is always worth remembering. This era of price cuts may still be remembered for many years.

There are many luxury brands similar to the high unit price. Many of the luxury brands, such as Paris, BV, Celine, and more expensive Hermes, are tired of aesthetics.

Prada...

Up and down a lot.

But this time Chanel's eyeballs and word of mouth have stepped to the forefront.

Four, after the price cuts, profits will not be lost at all.

The key is coming. Why?

Expert Zhou Ting has sharply reminded us that the European market is rising substantially, and the increase is more than that of China.

Such as Le Boy, European prices rose from 3100 euros to 3720 euros, and 11.12 European prices rose from 3550 euros to 4260 euros.

In this way, a balance will only make steady gains, and you will know where the profits of luxury goods can be higher than the profits given by China.

Even if it is too small and too profitable, the sales and profits will exceed the level of small profits.

Five, the global price of luxury goods.

This is a trend, and credit goes to it.

If Chanel sells well after the price cuts, other luxury brands will follow suit in the future.

In fact, everyone will try slowly because the global price balance is an inevitable trend.

Last year

The group has asked its two watches to compare the price of the mainland with Hongkong. However, because the watch is too expensive, the customers are not public, and there is a price difference between Hongkong and Europe, so the degree of concern is not so great.

After the Chanel is in place, it is clear that the watches of Dior and LVMH groups are going down, and in any case, the price of luxury goods will be named after Chanel and Chanel.

Six, crack down on fake goods and purchasing agents.

This must be one of the original intentions and expected results of Chanel, because both of them are based on the price gap between the Chinese and foreign markets. Once the spreads are squeezed, their profits will be thin. This group of people will fade away slowly, or turn to other profitable brands.

Just as domestic luxury goods say frankly, "we are not afraid of price cuts, we are afraid of fake goods, and the channels of purchasing channels that are difficult to distinguish between real and fake products to interfere with the market".

Chanel's move has done or is about to do so.