The Relationship Between Luxury Price Reduction And E-Commerce And Purchasing Agent

According to French media reported on May 30th, following Chanel, L'OREAL also said it would lower its product's selling price in China.

China Customs will lower import duties imposed on certain products.

The decision of the Chinese government has brought many problems to the global luxury brands in terms of pricing.

Chanel's move is making the world of luxury goods in turmoil.

After Chanel announced the adjustment of product prices in China, L'OREAL also followed its footsteps. A few weeks later, the French cosmetics giant announced that it would lower the price of Chinese products.

Other brands have followed suit to varying degrees.

Before China Customs announces tariff reduction,

The import tariff has been cut by half since June 1st, involving areas including clothing, cosmetics and other products.

The main purpose of the move is to stimulate domestic demand and promote economic growth.

"Chanel's move has invested a bomb in the global luxury market," said Martin Cr py, a luxury goods expert at Simon & Kutcher's partner strategy and marketing consultancy (Simon-Kucher & Partners).

In this case, Chanel adjusted its brand's three main products, namely, Chanel classic 2.55 and 11.12, and Boy CHANEL handbag series.

Their prices have dropped by about 20%.

The price will drop from the current 42500 yuan (6270 euros in May 26, 2015) to 33200 yuan (about 4900 euros).

Bruno Pavlovsky, President of Bruno Pavlovski, explained to Hongkong Daily: "this is a battle for the next twenty years. Chanel is ready."

The manager said, "we want to treat every customer fairly, without geographical differences."

And Chanel's move to ensure that the company's performance in the next few years to achieve "two digit" growth.

Our actions will also take into account the specific consumer behavior of customers. For example, some customers tend to compare prices in several markets, especially the price difference between physical stores and e-commerce websites.

Most importantly, for the end consumers, the price of unified Europe and China is designed to eliminate the adverse effects of plation import. Some individuals or companies buy products in European stores and sell them back to Chinese people, which is known as "purchasing".

Martin Cr py, a luxury goods expert, said: "there are still some problems in the purchasing market, which will damage the original image positioning of luxury goods.

Because of the imbalance in the distribution of brands, some brands repel this behavior in order to maintain their high-end image.

This is why some brands need to wait for a long time before they can buy their favorite handbags. The purpose of the brand is to show the rare and rare products and implement "hunger marketing".

Another problem is that some of the products purchased are not guaranteed to be genuine, and will adulterate the counterfeit products.