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    Luxury Brands Will Reduce Prices In Hongkong, The Inevitable Result Of Britain'S De European Effect.

    2016/9/17 22:43:00 49

    Luxury BrandsHongkongPrice Cuts

    According to an employee of the Tongluowan brand in Hongkong, the price reduction products include the classic handbag style and some new products in early autumn. The price reduction ranges from 10% to 15%, in order to reduce the price difference of the brand in the international market due to the depreciation of the pound.

    It is learnt that at present, other luxury brands Alexander McQueen, Mulberry and Vivienne Westwood have no price cuts for the time being. During this period of exchange rate fluctuation, the luxury brands of the world will also face the problem of re pricing.

    In June 23rd this year

    British deeurope

    Through the impact of the agreement, Exane BNP Paris bank earlier pointed out that Britain has become the cheapest luxury market in the world.

    In the domestic market, according to a staff at Burberry store in the Mixc, Shenzhen, the brand did adjust some handbags prices last week.

    For example, a brand named "Small Canter in Horseferry Check" has a 20% drop in the price of handbags, while another brand named "Medium Banner in Leather and House" has a new fall and winter new handbag price of 12%.

    At present, many luxury brands are reducing Hongkong's business and moving to mainland China's tourists.

    macau

    Jon Copestake, chief retail consumer analyst at the Economist Group's think-tank, said that the Burberry price adjustment is the inevitable result of the UK's departure from Europe. The depreciation of the pound is bound to reduce the price of products in Hongkong to reduce the international price gap. This is a measure for luxury brands to carry out parallel trading, and this will also help offset the strong Hong Kong dollar.

    Aaron Fischer, consumer regional director of CLSA, said: "Burberry is not surprising. Next is not just British brands, but other international.

    Luxury brand

    Prices will also be lowered in Hongkong. "

    The weakness of the euro this year has led to many luxury brands, including Chanel's price cuts in Asia and the price increase in Europe to balance the consumption gap between the two ends of the market.

    According to Barclay analyst, in the luxury industry, Burberry is one of the biggest brands in China and Europe. If the euro continues to slack, including the world's largest luxury group LVMH, it may take measures to reduce the price gap.

    According to the data, in the second quarter of this year's luxury brand earnings report, Hongkong has become the most headache market for luxury brands.

    Between April and June this year, Burberry recorded a double-digit drop in sales in Hongkong.

    However, the move of Burberry did not seem to cause consumers to buy enthusiasm. Compared to last March's Chanel price cut, the store's long queues were Burberry.

    It is understood that this is the largest price reduction activity ever made by Burberry in order to attract customers, but the brand has maintained a low profile publicity. Brand members have not received the special price notice similar to last year's price cut. Last year, the brand made a 8% to 10% reduction in its classic windbreaker and cashmere scarf.

    According to Burberry employees, despite the fact that the brand did not specifically notify member products of price adjustment, many consumers in mainland China asked them to reserve some styles of handbags.

    In addition, the British brand Ted Baker has also reduced the product price difference in the international market in similar ways, and the brand product has been reduced by HK $100 to HK $200 per piece.

    Burberry, like other fashion luxury brands, is seeking ways to ease the decline in performance. Coupled with the worsening of high profit market performance in Hongkong and Macao, as well as the devaluation of the renminbi, the performance of Burberry has worsened.

    It is noteworthy that Burberry will launch a new series of synchronized sales in the world's main stores after its fashion show in September 20th. Burberry will be the most aggressive luxury brand to take the lead in the CEO Burberry Christopher Bailey.

    Some analysts believe that the first look at Burberry9 shows that buying shows or accelerating the collapse of fashion week mode will have a serious impact on the delivery of clothing, designers, retailers and fashion systems.


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