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    Without Money, You Can'T Be Willful And Luxurious.

    2015/4/1 20:35:00 39

    RussiaHongkongLuxury Goods

    Suddenly, "Duang",

    Chanel

    (CHANEL) the news of China's market price cutting was robbed of friends circle.

    In March 17, 2015, luxury brand Chanel announced that it would open the curtain of global price adjustment in April 8, 2015.

    Including Mainland China, Hongkong, South Korea, Vietnam and Russia, prices will be cut at the same time. The prices of products in the mainland market will be as high as 20%. At the same time, the prices of products sold in Europe will be raised. After this price adjustment, the price difference between the mainland and Europe will not exceed 5%.

    The fragrance powder was very excited. In Hangzhou, Shanghai, Chengdu and other places, the queues of people were queuing up. Did the spring of the hand party really come? Would the other big brands follow up?

    Big cards fall behind the altar.

    "Chanel's price adjustment will play a role as a weathervane.

    This means that the first tier luxury goods represented by Chanel and LV are beginning to lower themselves to cater to Chinese consumers.

    Zhou Ting, President of the Institute of wealth and quality research, told reporters.

    In the luxury industry, Chanel, LV and Hermes are firmly occupying the status of the Pyramid spire. These three brands never even enter orlies, but do not discount, they also increase their prices every year, and are very strong in protecting their brand image.

    However, behind the maintenance of a high profile, these luxury brands are faced with an awkward predicament.

    According to the 2014 China luxury market report released by Bain, the world's leading consulting firm, the first negative growth in China's luxury market in 2014 was 1% down compared with 2013.

    But at the same time, in the global luxury market, the consumption of luxury goods in mainland China rose by 9% to 380 billion yuan, accounting for 30% of the global luxury market.

    This means that Chinese luxury goods consumption venues are mainly overseas.

    "Before 2013, we just opened the door to wait for customers to pay for the goods. The company's training of the big screen marketing rules of smile service simply couldn't be used, but it didn't work in 2014. In 2014, my face froze, and I couldn't sell a few products a day."

    A luxury brand store manager at Financial Street shopping center told reporters.

    He told reporters that in 2014, the luxury stores in Beijing had all the stores with landmark and flagship stores in addition to shinguang Tiandi and China World Trade Center, and other stores generally had poor income. In Beijing luxury stores, the passenger flow dropped by 50%~60%.

    On the other hand, with the expansion of market in China in recent years, luxury brands have laid too many stores in China, and have maintained a large number of operation teams.

    "

    Luxury goods

    When the brand first entered the mainland, many shopping centers almost cut off the land and repaid the money.

    Nowadays, the global luxury brands have entered China for more than 10 years, but many stores have become almost a product showcase. Their poor sales performance has greatly increased their operating costs in China.

    Chanel's price adjustment is aimed at boosting the Chinese market, attracting consumers to return, and reducing prices is the most effective way.

    Zhou Ting told reporters.

    {page_break}

    Overestimating the cost of the Chinese market

    "In order to balance the adjustment of the global price, we hope that the price of the Chinese market should not exceed 5% of the euro price.

    In addition to first adjusting the price of Le Boy, 11.12 and 2.55 three classic handbags, the price of other products will also be adjusted in the 2015 to 2016 quarters.

    Bruno Pavlovsky, President of Chanel fashion department, said so.

    Bruno Pavlovsky thinks Chanel handbag spreads in Paris and China has caused great distress to the brand image.

    In particular, the recent devaluation of the euro has made the difference between China and Europe more obvious. The price difference of some Chanel products has been as high as two times, leading to the embarrassing situation of poor sales of stores in Asia and the failure of Europe to break goods.

    Zhou Ting told reporters that the luxury market has always been a seller's market. The seller controls the right to speak and the pricing power, forming the regional price difference of luxury goods.

    The Chinese mainland market has always been regarded as a primary market, and luxury merchants overestimate the price of luxury goods in China by making use of the asymmetric information in the primary market and the immature psychology of luxury consumption in China.

    Beginning in 2013, luxury goods began to frantically open stores in the mainland of China, but also drastically carried out the "go Logo" campaign, but the effect was so unsuccessful that Chinese consumers did not buy it.

    A number of luxury brands' earnings reports have been found by journalists. After many years of aggressive progress in 2013, many international luxury brands sold poorly in the mainland market in 2014.

    Some international luxury brands have even made the choice to close Chinese stores.

    Since 2013, Armani flagship store and D&G flagship store have been closed down in Shanghai the Bund three and the Bund six.

    Bain consulting global partner Bruno Lanna believes that luxury brands will start complacency at the beginning, in Paris, in London, in New York, in Milan, in Seoul...

    There are queuing Chinese consumers everywhere. Sales of luxury brands in Europe and America are skyrocketing. Some of the brand's 70% business comes from Chinese consumers.

    But later, luxury brands suddenly realized that the Chinese consumer market and the Chinese market were no longer the same concept: China's consumer market is supporting the global consumer market, and the Chinese market is only a regional concept later.

    Who will be the next price cut?

    In fact, Chanel is the top regulator in the Chinese market, but it is not the first person to act.

    In February 2015, Patek Philippe, known as the "never advertise" watch, announced a price cut in Hongkong, a drop of 22%. In early March, LVMH's tigheya announced that the price of products sold in Hongkong was down by 3%~40%.

    Vacheron Constantin, which has been strong, has not allowed its agents to discount. But in the past two years, the environment has continued to fight against corruption. At present, it has acquiesced in the discount offered by the distributors themselves.

    Jaeger Le Coulter, who followed closely, said it would formally cut prices from May this year.

    When Hao table has already been so, can the price of bags be far away?

    The reporter inquired about PU.

    Rada,

    Dior, LV and other luxury brands, although the other side said no notice, but reporters learned that in fact, Dior has recently lowered some of the classic price, including Miss Dior series, including a drop of 10%~20%.

    At the same time, GUCCI is also studying new strategies, which will be introduced in the near future.

    The industry believes that the big price adjustment has led to a virtuous cycle of price, but some big names are still "pretending to be calm" and have not shown the attitude of following up immediately.

    One of the most obvious signals is that the purchasing agents are already anxious to get angry and are busy selling goods these days.

    "If the price of the Chinese market is still high, the ultimate victim is the brand itself.

    Therefore, we must let some of the consumption flow back to the Chinese market, readjust the price system, and make the brand channel reinvent, pricing strategy and customer management form a benign global operation mechanism.

    Therefore, luxury discount will enter the new normal.

    Zhou Tingru said.

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