Luxury Goods Are Not New.

"In fact, it is an inevitable trend to coordinate the price of luxury brands globally and narrow the price difference between Chinese and overseas luxury goods. China's market is so large that all brands can not abandon China because of the European market, and all brands will adjust themselves in a more recognized way. This is an inevitable trend, but Chanel is undoubtedly the biggest winner. Instead, it has become an event marketing of its brand, and has promoted the brand to pave the way for its sales," said He Bin, chief operating officer of the former Kiton China, and now a partner of Italy brand Tardini China.

In fact,

Before, luxury brands also worked hard to narrow the price gap at home and abroad. The reason is simple: totally upside down local and overseas sales make it difficult for luxury brands that have opened a large number of stores in China.

For example, LV has raised the retail price in the European market in recent years, but maintaining the price of the counter in the mainland is actually a "same price" movement, which will lead to consumption reflux. In addition, Yu Po table first announced the same price between Hongkong and the mainland last year.

The prices of all products in the mainland will be reduced by 10% to 20%.

But these brands or ways are too implicit or brand effect is not enough, instead of allowing the big brother of Chanel to win the market first advantage, the fact proves that later people can no longer replicate Chanel's effect.

"Chanel is bold this time, in the past to maintain the brand.

And customers' sense of honor, luxury brands keep rising prices.

The brand of such a position is now directly on the star product, and it will return the luxury price of the Chinese market to the rational level. I think it is at the forefront.

Lu Xiaoming, an executive of luxury brand China, is now the founder and President of organic home.

In the past, luxury brands claimed that the price difference at home and abroad was caused by China's high taxes and fees. But Lu Xiaoming pointed out that the high demand of luxury brands based on the Chinese market is also an important reason for the high price here. The environment of China's luxury market is hard to support this pricing now.

It is the forced force in the Chinese market that Chanel and its peers have to brave changes to save the Chinese market, thereby driving global sales.

Chanel's price cuts in the Chinese market seem to have triggered a Domino effect. One vote competitors have been unable to resist it. Burberry and Prada have made a follow up. Even the bosses are financial backgrounds and are very sensitive to digital and profit margins. The Swiss luxury goods group (Richemont) has taken action: Cartire, the largest jewellery and wrist watch brand, has to provide a consistent price system around the world and begin to cut prices in Hongkong.