Luxury Brands Seize The Opportunities In The Customized Market

After the toilet lid was rob, recently, the Chanel bag has also become the object of being mad. In the Chinese market, most international luxury brands sell their brands carefully every year to maintain their brand image so that people can have luxury goods that can preserve their value. In the past, Chanel, which was "rising or falling", recently announced "global price coordination", with its price cut in China reaching 20%, which ended its five year price increase trend.

This event not only represents the short-term adjustment of individual brand price strategy, but also reflects the end of an era of "excessive consumption luxury". It is understood that at present, luxury goods in the global performance and profits are declining, and in 2014, the Chinese bought 46% of the world's luxury goods. Luxury companies are increasingly taking a fancy to the Chinese market, and all the big names are racking their brains to break through.

"Before, Chinese people didn't care about the price difference of luxury goods, they could still make invoices, so we set the price higher." A luxury brand executive revealed the rules of the luxury industry's heyday. China's luxury market is developing rapidly. In the industry analysis, there are rich consumption choices, and there is no lack of public money consumption. After a series of anti-corruption policies in Central China, the abnormal market is returning to reason, and the pricing strategy of luxury brands will also change.

In March 18th, Chanel announced that the price of products sold in Europe will be raised by 20%, and that in the mainland of China will be reduced by 20%. Finally, the price difference between the European market and the Chinese market will shrink from about 50% to 5%. To this end, Shanghai, Beijing, Nanjing, Hangzhou and other Chanel counters have been rushes to catch up recently. Regarding the price reduction, Chanel said to the media that it is mainly to narrow the market price differentials, deal with the depreciation of the euro, and resist buying and selling. brand image The plague and so on.

Mao Lihui, a Fashion Critic in China, interviewed by the Yangtze River Commercial Daily reporter, the Chanel brand, as a luxury symbol, announced the move to cut prices in the Chinese market. First, consumption by public funds. Corrupt practices The rising trend of luxury consumption is being effectively seized, and some luxury brands in China are decreasing sharply, forcing the international luxury goods prices to survive. The second is that consumption luxury goods, as one of the fashion features, has made countless people flock to it. But with the international consumption trend rationalization, luxury goods that are wasting on social material capital are no longer symbols of material wealth. The rise and innovation of the concept of low carbon and environmental protection and fashion are opposed to decadent extravagance. Chinese market is no longer a hotbed of luxury goods.

" Chanel The price cuts will not only raise its market income in China, but will also trigger a downward trend in the entire luxury sector or take corresponding measures. Mao Lihui said that the image of luxury goods in China has been completely rewritten, and the future discount will become a trend.

The reporter understands that most Chinese luxury goods tariff rates are between 15% and 25%, while the difference between Chinese luxury goods and overseas is 40%, even if the duty free port is Hongkong, it is also quite different from the European price. According to the correlation analysis, the price of Chinese luxury goods is much higher than that of overseas, though the tax factors are concerned, most of them are caused by the partition pricing strategy of the manufacturers.

A luxury buyer analyzed the Cheung Kong Daily reporter. The sudden fall of the euro led to a larger gap between Chinese and European luxury goods prices, which caused a lot of outflow of consumers. Foreign consumption will not bring more wealth to Europe, but also lead to inflation within the country, which will make Europe vulnerable to a single blow.

"The key reason for the price reduction is to save the Chinese market. Although China has a strong purchasing power, Chanel's Chinese shop seems to be more like a display. The personage expresses, if do not take corresponding measure again, Chanel will face close shop situation in China.

At the beginning, all luxury brands including Chanel set a high price in China. According to various economic reports, the purchasing power of Europeans is far less than that of Chinese people, so Chanel launched a market economy adjustment function, which allowed Europe to rise in price and reduce China's price. At the same time, when prices fall, purchasing power will rise, and the purchasing power of the fake market will be relatively reduced, thereby maintaining the brand image.