How To Treat The "Cold" Of Luxury Goods?

As the euro and yen go down, how does "China's aunt" become a luxury store that looks like a rainbow, sweeping across Europe and Japan?

Today, the depreciation of the renminbi means that the renminbi will no longer have such a significant advantage in the exchange of foreign currencies. As a result, the overseas consumption enthusiasm of Chinese tourists is like cold water, and even the sea and the purchase are also affected.

It is no wonder that those businesses that have been on fire for a long time on Taobao have seen that the continuous depreciation of the renminbi is not crying out that "the heart is going to collapse". It is calling for "partners to rush to stockpile". Otherwise, consumers will be able to pay much more yuan if they clearly figure out the same thing.

From 2.7% (Hugo Boss group) to 5.5% (Ferragamo group) - not an increase, but a series of stock price declines, from European and American luxury listed companies.

This is seen as a collective "cold" after a "sneeze" of luxury goods: after a two day devaluation in August 11th and 12, such a fall is especially notable in the Chinese market, which has a larger share of sales.

In addition to the above mentioned mention list, the list of players from the LVMH group, Kai Yun group (Gucci parent company), the peak group to Hermes, Tod 's, Swatch, lay a large gun.

The falling share price is only the first tornado that the butterfly wings vibrate, or the most promising one.

The following challenges are facing the major luxury groups, which may not be seen by ordinary consumers at the first glance. But they are more closely related to our consumer behavior than stock prices. Just six months ago, Chanel launched the global coordinated pricing strategy of "European price increase and China's price reduction", which led a large number of luxury brands to follow up quickly. Gucci and Prada launched an unprecedented price adjustment or promotion. Even when cosmetics were also engaged in this campaign to spare no effort to narrow the price gap between China and the global market, the renminbi was suddenly caught in a devaluation.

Has the price been lowered enough to cover up the heat?

In fact, there are three less pleasant news, which is indeed caused by this sneeze, which is no exaggeration.

The first thing to do is to cut prices in vain. This does not need to go into details, but the factors that make big financial statements unattractive are more than stock prices.

Their sales in the Chinese market are converted into dollars and Euros according to their usual practice. After the depreciation of the renminbi, the same amount can only be exchanged for less US dollars and euros, which is equivalent to a decline in sales in the Chinese market.

But are these bad news enough to constitute the size and destructiveness of wolves? The answer is not necessarily true.

It is probably the move of a large number of big names to move ahead with the spread of the price difference, so that many people have the illusion that the gap between the spreads has been filled.

In fact, it is not a cold day.

Foreign countries still have more obvious price competitiveness.

A domestic electronic business platform, known as "the lowest price in the country", has a large package of 1980 yuan, but in Europe it only needs 1/3 yuan less than RMB 600 yuan. This is not the old news, but it is the real novelty after the big price adjustment.

Therefore, people who feel that overseas shopping is not worthwhile will be comforted by the news?

Moreover, the "chopper" family, who is focused on buying and selling, is afraid of money.

Common sense doesn't mean much.

The depreciation of the renminbi is close to 2%, but in the field of exchange rate, this is only a slight depreciation.

In a number of investment banks and analysts, only "more than 10%, including 10%" will be allowed.

There is an obvious change like leverage.

To put it another way, the Chinese market is so changeable that luxury brands are not the first to see.

Since 2013, the demand for gift giving caused by anti-corruption has dropped sharply, which has slowed down the speed of sales growth and the speed of shop opening, pushing the logo products to no end.

Therefore, there is no thief in the world who only eats meat but doesn't get beaten. "How much interest the luxuries once gained in the Chinese market may also pay for the current Chinese market."