Hermes Is In China's First 50 Percent Off Sale Clothing Line Inventory Next Year To Reduce Prices.

The high-end market is cold.

Breaking the conventional price cuts will escalate the movement of luxury brands.

Luxury goods have always been replaced by more frequent and lower discount promotions.

According to the Beijing Business Daily reporter, France's top luxury brand Hermes has rented Hongkong Admiralty Conrad Hotel today will be the lowest 50 percent off "sale" clothing products.

The first 50 percent off sale will be considered next year.

Reporters yesterday telephoned Conrad Hotel in Queensway, Hongkong, and learned that the Hermes discount special venue has begun to receive customers in the 5 floor hall, and will continue until the 24 th of this month.

This is the first luxury brand, Hermes, to sell such a low discount in the official name for the first time.

In the industry,

Brand products can be described as hard and luxurious. Some bags in the capital market can be equated to fixed assets such as car houses and mortgages.

Axel Dumas, the chief executive of Hermes group, has said that the brand is not without price cuts before it announced its 2014 fiscal year results. The company will consider the issue in 2016.

In addition, the industry believes that the price of Hermes in China in the long run is about 40% higher than that in Europe, and there is room for price reduction or promotion.

Analysts believe that since Chanel's price cuts in China and triggered a series of brand participation in price cuts, the strong price positioning of luxury goods and its inherent image of appreciation have long been broken.

Beijing Business Daily reporter found that last month, Beijing SKP shop celebrates, Hermes has participated in a round of 10 percent off promotional activities.

In the same period, there are also discount tickets.

Chanel,

Dozens of brands such as VERSACE, GIVENCY and so on.

After a month, Hermes discount is as low as 50 percent off.

Although it does not involve the bag of core products, the side price reduction of some products is very obvious.

The Research Institute of wealth and quality has said that the most effective way to reduce consumption in China is to cut prices in order to avoid the collapse of the Chinese market.

When Givenchy counters participated in the promotional activities of shinguang SKP, the salesperson said that sales volume had been improved.

Clothing line pressure inventory sales is king.

The luxury industry has seen a collective growth in performance, and some groups have even declined.

Not only is the pressure for future growth, but luxury goods, which are known for their scarcity, also need to digest their inventory vigorously.

The 2014 earnings report released by Hermes on March showed that the annual income was about 28 billion 130 million yuan, an increase of 9.7% over the same period last year. Operating profit was 10 billion 700 million yuan, an increase of 6.7% compared with the same period last year. Net profit was about 7 billion 100 million yuan, an increase of 8.7% over the same period last year.

Among them, its watch business was hit hard by the Chinese market, and its sales plummeted by 10.6%.

According to the category, leather goods, clothing and accessories and silk fabrics are the three largest sales accounts.

Among them, sales of clothing and clothing accounted for 23%, and silk accounted for 12%.

In 2014, sales of Hermes clothing accessories increased by 15%, while perfume and wristwatches fell by 8% and 17% respectively.

Today, the Asia Pacific market has become the most important market for Hermes group. Its sales account for about 34%, far higher than the second place, accounting for 19% of the European market.

Hermes group's overall performance is stable, but clothing and clothing categories are still under stock pressure.

For high-end consumers, the choice of clothing can be fashionable and popular in pursuit of diversification and individualization.

Zhou Ting, President of the Institute of wealth and quality, thinks that Hermes has a great pressure on the digestion of stock products, and the backlog products need to be sold as soon as possible.

It is reported that some brands of products will enter the stores of downstream businesses through wholesale channels. However, the blocking of wholesale business will result in a large backlog of products on Brand Company, and the company will promote sales in the form of VIP sale.

Otherwise, the adverse effects of inventory on the company's cash flow and other operations are still great.

Preservation and sale will become a norm.

Over the past decades, the main marketing method of luxury goods is to raise prices, maintain value or even declare appreciation.

In April last year, many luxury goods also launched a round of price surges, the highest increase of about 15%, to compensate for the loss of profits caused by sales decline and enhance brand image.

Zhou Ting said that when consumers are in the initial stage of purchasing luxury goods, they lack the recognition of brand concept and origin, and price is the main factor to decide whether the brand is good or bad.

But nowadays, consumers and brands have realized that the practice of keeping attraction with a single price increase is no longer applicable to mature consumer groups.

Most of the value and value added of luxury goods are marketing gimmicks.

There is a way out for the luxury industry to become fashionable and even popular in the future.

The legend of value preservation will accelerate the popularization trend of the luxury industry in the future.

The legend of value preservation is easy to break through in the second-hand luxury market, and the marketing significance of this gimmick is also getting smaller and smaller.

In many pawnshops, most of the new luxury goods can be bought at half price.

Zhou Ting predicts that the value of luxury goods will also be limited to commemorative products of very small quantity and category.