A Sensitive Topic Of Luxury: Price Adjustment

It is different from the price adjustment and discount of Gucci. As Chinese tourists flock to luxury goods such as Europe, Japan and other countries with lower exchange rates, LVMH has increased the price of European handbags by 3% in the first quarter since the beginning of the first quarter, and increased 5% in the second quarter.

LVMH's fashion and leather goods department has a good form, and Fendi, C, line, Givenchy and Kenzo have increased to varying degrees. Marc Jacobs and Donna Karan have declined significantly because of brand positioning adjustment. The revenue of watches and jewellery departments rose 22.6% to 1 billion 552 million euros (10 billion 640 million yuan) in the first half of the year; the organic growth and actual growth of the perfume and cosmetics sector were 6% and 17.4%, respectively, from 1 billion 839 million euros in the same period last year to 2 billion 159 million euros;

Although the wine and spirits sector, which is still in negative growth during the first quarter, rebounded in the two quarter, but the income growth in the first half of the year was only 2% in the Greater China market.

Under the cloud banner Bottega Veneta and Saint Laurent Revenue grew by two digits, while sports brand Puma dragged the group back as long as it did: in the first half, business profits fell by 42.5%.

This practice is mainly aimed at suppressing the "purchasing" business derived from the huge spread. The chief financial officer, Jean-Jacques Guiony, once admitted, "though I see it," customer In the store, but you can't know if he buys it for himself or sells it to China. "

But LVMH is still not prepared to make adjustments to its pricing structure. Guiony said: "the price of new products may be adjusted, but we do not have any adjustment to global pricing." In his view, for luxury brands, price adjustment is meaningless, and this will lead to brands unable to resist fluctuations in exchange rate.