What Exactly Does The Price Of Luxury Goods Depend On?

Luxury goods once envied and hated people, but according to reliable sources, the cost of Gucci was only a few hundred yuan, and the cost of LV was 200-400 yuan. Some people think that the excessive connection between pricing and cost is a wrong way of thinking, but experts believe that the monopoly position of luxury goods has begun to waver.

According to the frequent "bottom up" of luxury goods "low cost" shows that the cost of a Gucci TV factory in Italy is 24 euros. At the same time, the domestic Internet writers judged by their experience of "factory workers" that the cost of LV is only 200-400 yuan, and the cost of hardware is 30-50 yuan.

One stone stirred up waves, and the industry started a round.

Heated debate on value and added value.

Reporters learned that the calculation of the cost of luxury goods includes raw materials, processing costs, brand value, public relations and marketing costs, channel costs, tariffs and government taxes.

In addition, some people in the industry say that some celebrities of luxury goods have spent a lot of money. Some of them account for about 50%-60% of the price. Besides, the cost of management is not decimal.

Luxury goods

Whether it is reasonable or not is different.

Financial analysts publish in public on the Internet that real cost accounting is extremely complex, and prices depend on factors such as supply and demand, consumer preferences, and price of complementary products.

In this regard, Zhou Ting, President of the luxury goods field and President of the Institute of wealth quality, believes that the "brand value" of the luxury goods was previously recognized and bought by consumers. The premise is "information asymmetry". Therefore, the seller has absolute pricing power, and whether the added value is "super high" or "too high" can not be given the absolute standard.

Zhou Ting believes that from the perspective of economic principles, the past management and pricing models of luxury goods are gradually disintegrating, and the seller's market position and voice right of luxury goods have been shaken.

Since the second half of 2014, a lot of luxury goods formerly known as "hard luxury" by consumers have begun to appear surprisingly discounted.

This is known as "disguised price reduction" by the industry.

Ignoring service and quality is the luxury of China nowadays.

The most common condition.

When consumers do not buy, brands can only be forced to discount.

"Discount is equivalent to a price reduction strategy."

Zhou Ting said that this is the gradual process of luxury prices to adapt to the psychological price of consumers.

Even if domestic luxury goods are discounted, consumers still prefer overseas shopping. The price balance of luxury goods at home and abroad will be the trend of the times.

"The era of luxury goods raising prices and maintaining brand image has passed, and can no longer go back."

Zhou Ting said that in the future, there are only two ways to choose luxury goods: one is to voluntarily reduce the price and return to the reasonable space for consumers to accept psychology; the second is to continue to passively discount and stimulate consumption.

But the second choice will undoubtedly damage their image positioning.

Zhou Ting judged that consumers will gain the upper hand in the field of luxury goods in a year.

Many consumer pricing models have emerged in many areas.

The high-end consumer market will be popular in the future.

As a special commodity, luxury goods only have special commemorative meaning and quality, and the extra high added value will be recognized by consumers.