Prada Plans To Cut Prices In Asia After Easter

Since mid March, luxury goods giant Chanel has lowered the price of some classic styles in Asia.

In the days of Prada Prada's recent investor day in London, brand management said it would follow other competitors in Asia.

"The price of Prada in Asia (except Japan) will be reduced, but in Europe it is not necessarily a price increase. Because of the adjustment of prices, we should consider the international market factors, so the details will be revealed after Easter."

Stefano Cantino, director of marketing and business development of Prada, said the price adjustment plan will be implemented after Easter.

Dean of wealth Quality Research Institute

"We think luxury goods are global," he said.

Integration is an inevitable trend. This kind of price adjustment will enable the big brands to gain market opportunities and space under the current market structure, and those who do not adjust prices can only say that they are losing consumers and losing the market.

In the Wall Street journal, Bloomberg and other overseas media reports, luxury brands are

Poor operating performance is also related to the anti-corruption policy in recent years.

"The Chinese government's crackdown on corruption and abuse of public funds consumption has led to a decline in the overall demand for luxury goods in China, which has, to a certain extent, dragged down luxury companies."

Bloomberg said.

Yang Yuechen, director of the Shanghai based research and consulting department, said the price adjustment reflects the poor performance of luxury goods sales in the Chinese market in recent years. The expansion of the number of luxury stores is not obviously doubling with turnover growth.

Plus operating costs such as management fees, making it difficult for luxury enterprises to make profits.

But China is still the largest overseas market for luxury goods. Luxury goods in China's market are still popular, not in the so-called "cold winter".

Of course, price adjustment will enable many brands to regain confidence in the Chinese mainland market.

"Over the past year, China's luxury market has been seriously declining, but at the same time, Chinese luxury consumption abroad is rising.

In 2014, the Chinese consumed 47% of the world's luxury goods, 76% of which were purchased outside China.

The luxury market is seriously upside down. There are a large number of stores in China, but all of them are reduced to billboards and display shops. The damage to brands is even greater.

Zhou Ting said.

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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.

During the Bourbon family and the Bonaparte family rule France, the luxury goods that modern people knew 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. Luxury became 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 small in quantity, usually custom-made, only to a small number of customers who are really good.

Today, these companies still call the founder's name. In fact, the vast majority have been bought and run by business tycoons.

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.

But what you don't know is that these highly famous brands may be very small.

In all industries, scale is the main factor to compare the company or industry, but in the luxury industry, the scale does not seem so important, and some companies are very small.

For example, Cardin (Cardin) has only 10 million euros in sales worldwide, and Carven (card) company has sales of only 12 million euros.

This sales volume is less than that of a franchised store in German Volkswagen.

However, it is undeniable that Cardin and Carven have a strong brand influence worldwide.