Chanel Triggered A Wave Of Price Cuts, The Overall Growth Of The Industry'S First Negative Growth

Reporters learned that Gucci, a luxury luxury group belonging to the French Open Cloud group, lost 1.9% to 3 billion 497 million euros (23 billion 700 million yuan) in 2014, with a recurrent operating profit of 1 billion 56 million euros (about 7 billion 140 million yuan), a decrease of 6.7% over the same period last year. The net income of Italy luxury goods giant Prada decreased by 1% in 2014 compared with the same period last year, to 3 billion 550 million euros (23 billion 915 million yuan).

And its Swiss brands, such as Cartire, Van Cleef & Arpels, Wanguo, Jaeger Le Coulter, Ralph Lauren and many other luxury brands, have not been spared.

As of September 30, 2014, the annual sales volume in the Asia Pacific region was 2 billion 83 million euros (14 billion 30 million yuan), down 2% from the same period last year.

This is in sharp contrast to the rapid growth of luxury brands in China in the past few years.

The 2014 China luxury market report, released by Bain, a world-renowned consultancy management company, showed that the scale of China's luxury market dropped to 115 billion yuan in 2014, and the composite annual growth rate dropped to -1% for the first time, while the figure increased by 2% in 2013, and the growth rate in 2012 and 2011 was as high as 7% and 30%.

In April 8, 2015, the French luxury brand Chanel took the lead in reducing the price. It announced that it was affected by the recent low euro exchange rate. Since April 8th, the price of the mainland market has been reduced by 20%, and the European price has increased correspondingly.

This move not only ended Chanel's 5 years of rising prices in China, but also led to the "Domino" effect of luxury brands.

Dior and Moschino (Moschino) also began to cut prices. In the Hongkong market, including several classic styles such as Miss Dior and Dior Soft, the price cut has reached 12%; Moschino has fully adjusted the price of the spring and summer ornaments (including handbags and accessories) newly launched in China since April 13th, with an average decrease of 20%.

The reason for price reduction is the effect of the recent exchange rate, which is basically the same as that of Chanel.

In addition, Prada (Prada), Versace (Versace), Zenith and so on.

They also said they wanted to reduce prices in China.

The brand of Switzerland's peak group also came out of the news of price cuts in Hongkong. Vacheron Constantin, which had always been strong in price, had not allowed the discount of agents before. However, under the influence of the big environment, it has tacitly approved the discount offered by the distributors themselves. Following the Jaeger Le Coulter, it also indicated that the price will be formally lowered in May this year.

Always insist on not doing

Patek Philippe also said it had cut its price in the mainland market by 18%, and a month ago, the brand had just cut 5% in Switzerland, while in Hongkong, China, the average price cut was 7% (the highest decline was 22%) while the European region raised 7%.

In March 19th, the French LVMH group's tiger Heuer announced its price cut on the first day of the international watch exhibition in Basel, Switzerland.

Tigo said that the decision was to seize the opportunity of the recent appreciation of the Swiss franc and readjust its international pricing policy: "the brand will avoid increasing its product prices in the euro area, Japan or Singapore.

On the contrary, from March, the average price in Switzerland, mainland China, the United States, the Caribbean, the United States and South America decreased by 8%, the average price in the United Kingdom dropped by 7%, and the average price in Hongkong, China, fell by 13%.