Know The Times! Luxury Prices Surging

The golden age of the luxury brands in China, year after year, may be gone.

According to the annual reports of luxury products, mainland China in 2014

Consumption for the first time showed negative growth.

The sharp decline in performance has made these big names aware of the crisis.

As a benchmark brand in the industry, Chanel took the lead in responding to the market. The big company, which has increased by more than 15% over the past five years, suddenly adjusted the price of goods, with an average decrease of around 20%.

Chanel price "up and down" adjustment

In March 18th, Chanel issued a statement that it raised the price of 20% in Europe in April 8th and reduced the price of handbags, leather goods and clothing products in China by 20%, balancing the global price system.

The price cuts started with 2.55, Boy and 11.12 three classic handbags.

It is understood that Chanel 11.12 classic.

European prices will rise from 3550 euros to 4260 euros.

Another European Boy handbag price will rise from 3100 euros to 3720 euros.

At the same time, the price of Chanel 11.12 handbags in mainland China will be reduced from 38 thousand and 200 to 30 thousand yuan. Compared with the European price after the rise in price, the price difference between Chanel and handbags will be reduced from 14 thousand and 700 yuan to 1800 yuan. Le Boy handbags will be reduced from 32 thousand and 700 yuan to 26 thousand yuan, and the difference between the two countries will be reduced to 1400 yuan.

In fact, in addition to the official announcement of the price reduction of three handbags, Chanel's dozens of other products are also being cut.

After price adjustment, the price difference between the above products will not exceed 10% in the European and Chinese markets. If the euro rate continues to fall, the price gap will continue to shrink.

Or will open prices and trends.

The price adjustment of Chanel is a big blow to those who make profits by earning two places' difference.

Ras Tan, Chanel public relations manager of China Fashion Department, has said that the purchasing market has great influence on Chanel brand. The price adjustment is also aimed at cracking down on purchasing agents and improving the shopping experience of customers in boutiques.

After receiving the notification from European suppliers, the domestic fashion dealers will step down the related category prices for the first time.

CEO, Ji Wen Hong, said that in 2014, 76% of Chinese luxury goods took place in overseas markets, and a large number of luxury stores in the mainland existed in name only.

Sluggish business is forcing luxury.

We have to reconsider the pricing system.

"Narrowing the price gap will be the general trend."

Ji Wenhong said that the so-called high tariffs, new market expansion fees and high rents had led to a much higher price in the Chinese market than in overseas markets. Now these are no longer excuses.

Many people in the industry believe that Chanel is a decision of "knowing the current situation".

An industry executive believes that the spread of luxury goods directly affects domestic sales.

"Luxury goods in China used to be expensive in the past, first because of tariffs, and then because of the high demand in the mainland of China. Now the situation is changing. Luxury goods will consider this situation."

In fact, since last year, some luxury goods have been cut down in various ways, such as LVMH's high-end watch brand Yu Bu, Zhen Li, and Heya.

Dior also lowered some classic prices including MISS DIOR.

After Chanel's price cut, other luxury goods will follow suit to narrow the price difference between home and abroad.

Consumers do not have to follow suit.

Second days after the news of Chanel's price cut, Chanel stores in the whole country began to queue up.

In fact, Chanel's price adjustment is not short-term behavior, consumers do not have to follow suit to join in the fun.

Of course, unless you want to buy a limited amount, the limited amount should not be on the price list.

In addition, although Chanel's Chinese market has started to cut prices, Chanel's European price adjustment started in April 8th, so during this period, consumers just had plans to travel to Europe, and the most cost-effective way was to buy in Europe.

In fact, Chanel's rise in China's price in Europe has only lowered the price difference between China and Europe, which is cheaper for consumers in the Chinese market.

Smart consumers say that from the current situation, Chanel is definitely making a profit in the so-called "price reduction".