The Inevitable Trend Of Luxury Industry Development: Global Price Integration

For many people, buying

Just thinking about it, many people may not think that one day, the word "panic buying" can be used to describe the sales situation of luxury stores in the mainland of China.

Since Chanel announced the adjustment of the price of the three products, Shanghai, Dalian, Guangzhou and other places have been queuing up for a crowd of people. The multimedia has even played the title of "Chanel being swept away by aunt".

With the status of Chanel, its price reduction can be seen as a "vane" in the industry. If the price cuts stimulate sales, the brand image will not be damaged, so the follow-up of other brands can be expected.

In February this year, Patek Philippe announced a price cut in Hongkong, a drop of 22%. In early March, LVMH's tigheya announced that the price of products sold in Hongkong was down by 3%-40%.

Consumers suddenly understand that the high-end dictionary also has two words of "price reduction".

Global price integration is an inevitable trend in the luxury industry.

At present, there is a serious price upside down phenomenon in the Chinese brand and the international market, especially in the European market.

According to statistics, 76% of Chinese luxury consumption occurs abroad, and the most direct reason is "price difference".

Even without considering tax, logistics and other factors, the exchange rate is only two.

The product price gap is as high as 30%.

Three or four years ago, 1 euros could be exchanged for 10 yuan, and now it is less than 7 yuan.

As long as you lift your feet, buying a bag is equivalent to 33% off.

In recent years, the declining performance of luxury brands in China is undeniable.

Bain's latest China luxury market research 2014 shows that compared with 2013, China's luxury market fell by 1% in 2014, the first negative growth in the luxury market in mainland China.

In a few luxury stores in Beijing, the decline in passenger flow is as high as 50%-60%.

But on the other hand, with the expansion of market in China in recent years,

Too many stores have been set up in China, and a large number of operation teams have been maintained. The cost of operation is getting higher and higher. The last thing they want to see is the collapse of the Chinese market.

Retaining consumers is an important development strategy for luxury brands in China recently.

Influenced by policies, China's official consumption has been seriously constrained, and the gift market has been hit hard. Luxury brands have already lost their important source of "institutions" or "units". The consumption of high-end products is returning to its original source.

In this case, "price reduction" is the most simple and crude way to save the market.

Remember that when luxury brands first entered the Chinese mainland, many shopping centers were almost "cut the land" and left them.

With price cuts, there will be new changes in the cooperation between luxury brands and domestic retail enterprises.

Everyone knows that because of the high price and small audience, luxury goods enter the shopping mall, and do little to stimulate the flow of people.

If the price of luxury goods is adjusted to a reasonable price in China, the shopping center will re evaluate their driving effect on the flow of people and do not exclude the possibility of introducing it.