Luxury Goods Market Is In A Strange Circle: Two Times A Year.

Insiders said that although the pricing of these brands is high in China, the consumption behavior and consumption mindset of high-end consumers have not been affected. But if they are too high, these brands will eventually be abandoned by the market.

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Luxury goods should go up. Buying on behalf of Start raising prices

Luxury goods are rising frequently. Following the comprehensive price adjustment of the famous brand Louis Weedon (LV) in the mainland and Macao in February 19th, LV recently launched a global round of price adjustment. Recently, the price of LV French official website has been quietly adjusted. This adjustment involves LV handbags, including classic series Never Full, Speedy, Noe, Alma and so on, the price adjustment range is around 10%.

Reporters found that a number of luxury shopping outlets have launched a "luxury to raise prices" sign, calling consumers "every minute counts." Affected by the news of price increases, some Taobao shoppers have posted price adjustment notices. Most Taobao shopkeepers said that the price adjustment has not yet touched on the Chinese market.

"At present, we have several LV star products inventory, such as LV's pure cashmere scarf, several classic bags of old flowers, etc. They are all selling at the original price and will be priced at the end of the year. According to convention, Europe will rise first, and then Hongkong's mainland stores will also increase their prices. Due to the high tariffs and other charges in China, there is still a certain market for purchasing agents. Taobao purchasing agent told reporters this.

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Two times a year because of purchasing power.

After news of luxury price adjustment, reporters immediately visited market research. Recently, the price adjustment information has been released in France, and some European countries will also adjust the price recently. The price will rise to the mainland before the end of the year. China World Trade Center mall LV The salesperson of the store told reporters, "this price range is relatively wide, and a refill of LV will have a certain increase. The increase is expected to be between 7%-10%. "

Subsequently, reporters visited GUCCI, Hermes, Prada and other international luxury brands, although sales staff said that at present there was no notice of price rise, but according to the "law" of luxury goods prices, the price will be adjusted by the end of the latest. The price of luxury goods is not rare. Since these brands have entered China, they have risen 2 times a year on average.

"Few people consumed LV in the early years, but nowadays, with the expansion of LV, GUCCI and other brand consumer groups, the number of people who pay more attention is higher than that of price sensitivity." An industry source told reporters, "the price of Hermes is not much static. After all, like platinum bags, these products are often seventy thousand or eighty thousand or even more than 10 million. We have to queue up for a few years or even raise the price, not the public can consume."

An industry insider once said: "the pricing of luxury brands is based on market regulation, and this regulation is based on the purchasing power of consumers in different markets. Generally divided into three markets: the European market, the Chinese market and the North American market. Among them, the Asian market has the highest price, especially in China, because the Chinese market is large and the purchasing power is strong.

As a matter of fact, the marketing of luxury brands also has a definite effect. According to many luxury brand salesmen, although the price has improved, most commodities are still in short supply.

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Is cost the real reason for frequent price increases?

　　 Luxury goods Big prices never seem to be affected by the economic situation. According to the official rhetoric of luxury brands such as LV and CHANNEL, the prices of raw materials and exchange rate have been taken into account comprehensively, so the price should be increased worldwide.

Is cost really the real reason for the rise in the price of luxury goods? According to an industry insider, there is a formula for calculating the global pricing of luxury goods:

Raw material 5%+ processing cost 10% (including design, finished products processing, transportation) + profit retention rate 20% (brand pricing and annual price increase) + advertising and public relations activity cost 8% (year) + exclusive store annual development cost 6% (including commercial convenience) + human resources team cost 10% (annual) + import tariff, consumption tax, partial value-added tax and other comprehensive tax rate 16%= average retail price in European market

Throughout the development of luxury goods, rising prices undoubtedly become the most important marketing strategy. The "high price" feature of luxury goods is not only a manifestation of the spiritual value of luxury goods, but also an important means for users to show their identity and status. In the economic situation of exchange rate change and inflation, no price increase means depreciation. It also means the loss of supporters.

High prices do not affect sales volume, which is a normal thing in the luxury industry. Even a lot of luxury goods practitioners are surprised at this "more and more buy" luxury circle.

"Consumers purchase luxury goods is more of a spiritual need. If you lower the price of your necessities, you can attract people's attention. But if the price of luxury goods is too low, no one will be interested. For those who buy luxury goods, they will be able to buy products before the price rises. " A brand seller said.

"Products can raise prices and still do not affect sales, why not?" insiders said, "if someone thinks luxury goods are too expensive, they can not buy them, but if a large number of customers do not mind, willing to pay for historical, technological and other brand added value, you can do nothing about it. The price will eventually be regulated by the market, and it will be abandoned by the market if it is too high.