Luxury Brands Choose Price Reduction Strategy Is An Inevitable Choice.

In recent days, the British luxury brand Burberry has lowered the price of its classic handbag style and some new products in early autumn. The price range has reached 10%-15%, of which the classic handbag has fallen by 20%.

Reporters in the consumer survey of Beijing Burberry flagship store learned that Burberry not only implemented price reduction measures in Hongkong, but also adopted a price reduction measure in the mainland a week ago, with a price cut of about 20%, mainly involving bag products.

In this regard, the industry analysis pointed out that the first-rate luxury brands from their own price, in addition to the United Kingdom to Europe, resulting in continued depreciation of the pound, the intention to reduce the price of the brand in the international market through price cuts, the intention to save the market decline can not be ignored.

In the face of the continued weakness of the global luxury market, the old brand of British luxury brands

In addition to reducing salaries and layoffs, a number of strategies have been launched in the hope of saving the declining performance.

It is reported that Burberry has adjusted prices in Hongkong and the mainland market since September, and the price reduction has been as high as 20%-25%.

At the same time, at the end of the London Fashion Week, Burberry was the first to try to buy a strategy for the first time.

Since the first implementation of price cuts in mainland China last year, Chanel has opened up the curtain of luxury goods in China.

Beijing Business Daily reporter found in the survey, although Burberry conducted a large-scale price adjustment, but the store customers mostly for consultation or try on, in the field survey of 20 minutes, and no consumers to buy on the spot.

For the Burberry price reduction market strategy, Zhou Ting believes that the price reduction of luxury brands is mainly influenced by the strategy of global price integration. The brand should start from product design and product positioning, and it is unrealistic to simply think that price cuts can save the market.

Moreover, the price reduction of luxury brands itself is a double-edged sword. Price cuts may pull store sales in a short time, but with a round of price cuts, the brand image will inevitably be affected.

It is worth noting that the spread of Burberry brand is almost 50% at home and abroad, and the decline of 20% is not enough for many domestic consumers.

It is reported that Burberry has been continuously pushing the outlets of the outlets over the past two years, and many brands of outlets in the country can see the figure of the brand. Although the price is not cheap abroad, it still has a competitive advantage over the domestic authentic shops.

But the purchase of Burberry products in the UK or Europe's outlets is very cheap. With the further expansion of overseas purchasing and Hai Tao market, brand global prices are increasingly pparent.

In this regard, Zhou Ting believes that with the global information integration and the diversification of luxury shopping channels, the sensitivity of consumers to prices is further declining. On the contrary, the ability of product innovation and design has become the focus of consumers' attention.

However, from the design of Burberry brand now, it is obvious that it has no market competitive advantage.

In the face of the continuing weakness of the global luxury market, Burberry, a veteran British luxury brand, has launched a number of strategies in addition to reducing salaries and layoffs.

It is reported that Burberry is in Hongkong and

Since September, price adjustment has been carried out, and the price reduction has been as high as 20%-25%.

Meanwhile, at the London Fashion Week, which just ended yesterday, Burberry first tried to buy instant strategy.

According to the latest performance of Burberry, as of March 31, 2016, the group's annual profit fell 10% to 421 million pounds, while the same store sales recorded a 1% decline. The sales in the same store in Hongkong, Macao and China actually recorded an increase of 3%.

Insiders pointed out that the pursuit of price cuts has a greater risk for the long-term development of the brand, which means that the buying strategy may collapse the fashion week pattern that luxury has been extending.

In recent days, the British luxury brand Burberry has lowered the price of its classic handbag style and some new products in early autumn. The price range has reached 10%-15%, of which the classic handbag has fallen by 20%.

The Beijing Commercial Daily reporter, as a consumer, conducted an investigation into the flagship store in Beijing. It was learned that Burberry not only implemented price reduction measures in Hongkong, but also adopted a price reduction measure in the mainland a week ago, with a price cut of about 20%, mainly involving bag products.

In this regard, the industry analysis pointed out that the first-rate luxury brands from their own price, in addition to the United Kingdom to Europe, resulting in continued depreciation of the pound, the intention to reduce the price of the brand in the international market through price cuts, the intention to save the market decline can not be ignored.

Reporters learned that this price adjustment is following the Burberry in the mainland market for some scarves, accessories and a small number of windbreaker products, the brand once again for the handbag products to implement a price reduction strategy.

According to the reporter's on-the-spot investigation, a small Horseferry leather leather Kanter handbag is priced at about 10 thousand yuan before the price is reduced, the price of the product is 7300 yuan after the price is reduced, and the price of the black full leather trumpet handbag is 24 thousand and 500 yuan before the price is reduced, and the price is 17 thousand yuan after the price is reduced.

A blue cashmere lady's coat is priced at 26 thousand yuan before the price is cut, and the price is only 21 thousand yuan after the price is cut.

Burberry salesperson said that the brand implementation of the price reduction strategy is mainly hoping to reduce domestic and foreign spreads, thereby stimulating domestic sales, and also being reduced domestically.

Influence.

Insiders pointed out that Burberry also opened the new look show mode for the first time in the September 19th London international fashion show.

For this new model of "buy and sell", Burberry said that it has broken through its usual natural form, and has reduced the time lag between display and retail market for nearly 5 months, strengthened product supply chain management, highlighted product timeliness, seasonality and personalization advantages, and narrowed the intimacy between consumers and brands.

In this regard, Zhou Ting, President of the Institute of wealth and quality, pointed out that the mode of "watching is buying" is a subversion of fashion week.

Burberry sees the benefits of this new model but ignores the long-term impact on the brand.

As the first tier luxury group in the world, Burberry implemented a price reduction strategy in China, and the continued weakness of its brand performance became the main reason for the company's countermeasures.

Reporters read the earnings report, Burberry group revenue in fiscal 2016 achieved 2 billion 500 million pounds, down 1% over the same period.

The adjusted pre tax profit recorded 421 million pounds, down 10% from the same period last year.

And as of the four quarter of March 31st this year, Burberry began to show a marked decline following the flat performance in the three quarter, and the retail channel fell by 5% compared with the sales in 2016.

From the global market analysis, Burberry's sales decline in the Asia Pacific region is particularly evident, of which Hongkong's performance has plunged continuously for 20% consecutive quarters in the three quarter.

It is reported that in the second half of fiscal year Burberry 2016, sales fell by 2% year-on-year, and the concern is that if the market performance of Hongkong and Macao is eliminated, the group's performance in the second half of the fiscal year will be reversed by an increase of 1%.

It can be seen that in the environment of RMB depreciation, the implementation of the mainland anti-corruption policy and the high profit market performance in Hongkong and Macao, the overall market performance of the group has been greatly affected.

The European market suffered many terrorist attacks, tourists declined, sales continued to slow down interference, the fourth quarter sales performance is obviously poor, the Middle East and the United States market performance also no breakthrough.

Although Japan's performance rose by several times, in essence, the Japanese market's franchise revenue dropped by 19 million as the group's authorized business in Japan expired.

At the same time, the group noted that Burberry is expected to continue to fall in the first half of 2017, thanks to the weakness of the luxury market.