Why Does Chanel Choose Handbags For Price Adjustment?

The handbag has an amazing profit margin.

Today, when you walk into luxury stores anywhere in the world, you will find yourself trapped.

Surrounded.

They are the most easily sold luxury fashion items because they don't need size and try on: you just need to see if you like it, you buy it.

That's the deal.

They are easier to create and produce than perfume, but profit margins are shocking: most luxury brand handbags are 10-12 times as profitable as their manufacturing costs.

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The profit reached 13 parts of the manufacturing cost.

Handbags are the engine of the luxury industry.

According to Coach's annual consumer survey, in 2000, American women bought two new bags on average, and by 2004, the data had turned to more than 4.

In Louis Vuitton, Tokyo's largest four storey world store, 40% of all sales come from the first storefront, where only the flower bag, wallet and other small leather goods are sold.

Luxury Brand Company are smaller in scale.

Today, 60% of the market share of luxury goods is controlled by 35 major brands, such as Louis Weedon, Gucci, Prada, Giorgio Armani, Hermes, and Chanel. The annual turnover of these brands is over 1 billion dollars.

In fact, most of the luxury brands we like to talk about are created by the humble artisans in eighteenth Century and nineteenth Century for making exquisite handicrafts by the royal family.

Modern people are familiar with the Bourbon family and the Bonaparte family's rule over France.

It was born in France.

At the end of the nineteenth Century, the royal power declined, the bourgeoisie rose, the European aristocracy and the elite of the United States, such as the Vander Bill family, the Astor family and the Whitney family formed a closed circle. Luxury became their exclusive domain.

Luxury is an element of life belonging to the upper class. It is desirable to join a senior club or to have a famous family name.

Moreover, they are always small in quantity, usually custom-made, only to a small number of customers who are really good.

Today, these companies still call the founder's name. In fact, the vast majority have been bought and run by business tycoons.

Over the past 20 years, they have turned a single brand into a big brand known by billions of dollars worth of big companies and earth people.

But what you don't know is that these highly famous brands may be very small.

In all industries, scale is the main factor to compare the company or industry, but in the luxury industry, the scale does not seem so important, and some companies are very small.

For example, Cardin (Cardin) has only 10 million euros in sales worldwide, and Carven (card) company has sales of only 12 million euros.

This sales volume is less than that of a franchised store in German Volkswagen.

However, it is undeniable that Cardin and Carven have a strong brand influence worldwide.

The label of origin label

Luxury brands are fully protected by their logo and trademarks. They only provide manufacturers with a certain number of labels in each batch of handbags orders.

Manufacturers told reporters that very few handbags really use the "Made in China" label.

Even so, the technique is very subtle.

Some handbag labels are sewn on the bottom of the suture of the inner pocket.

In some handbags, the label is printed on the stamp size of the company's trademark.

You need to use a magnifying glass when reading.

In most cases, the handbags are labeled "Made in Italy", "Made in France" or "Made in U.K".

The label of the word.

Brand manufacturers avoid the "made in China" label as much as possible.

The label of a brand "Made in China" is actually a sticker attached to the outer package.

When the goods arrive in Italy, the brands will tear up the adhesive stickers and replace them with the new "Made in Italy" stickers.

Some brands sell all their handbags in China except for handles.

When handbags are shipped to Italy, the handle is added. Some brands put the most intensive parts of shoe processing in China, and then put them on the sole of Italy. These products are all labeled "Made in Italy".

The masterpiece of IT handbag marketing

At the end of the eighteenth Century, European women wore plucent waistcoat without pockets, so they had to put valuables into the bag, which was regarded as the precursor of the present handbag.

At the end of the nineteenth Century, sewing and embroidery had become a daily activity. The upper class women put needles into gorgeous sewing bags.

Besides, anything else on your body will be regarded as impolite: that's why you should bring your attendants.

Modern handbags came into being with the appearance of women's participation in politics in twentieth Century.

The handbag symbolizes a new independence. It means free to come and go wherever you like, leaving home without telling anyone.

Soon handbags become an important accessory for ordinary consumers.

IT handbag phenomenon has only been produced for more than 20 years. It can be said that young and dynamic is created by the marketing operation of luxury enterprises.

In the 90s fashion magazine, if you can't keep up with the clothes in the wardrobe every season, you can make a new look through a new bag.

Fashion companies push handbags into cutting-edge products, making them more and more provocative commercial advertising centers.

The handbag has become a fascinating temptation.

Today, in the success of a luxury brand, handbags have become such an important factor that Gucci group (Gucci) blamed the poor sales of Saint Laurent in 2005 for its lack of popular handbags in several of its products.

IT is also a Fendi bag. Gefendi has pformed from a vulgar, vulgar old fur company into a top luxury fashion brand.

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Louis Weedon's popularity

Louis Vuitton is very good at packing and packing beautiful skirts and fancy things, thus becoming queen Napoleon Ou Renni's box packing worker and leather box maker.

The Queen's Royal authorization order represents the highest honor.

Vuitton's business is booming.

In 1859, he decided to expand the storefront, bought an acre of land in the Northeast suburb of Paris, and built a factory with two rooms. Now it has become the Louis Weedon Museum for visitors.

The period from the end of nineteenth Century to the Second World War was an elegant age, perhaps the last true golden age of luxury.

During that time, Georges, the son of Vuitton, at the age of 31, designed LV's most famous checkerboard, chocolate brown and beige Western chessboard pattern. In some chessboard there were "Marque Louis Vuitton Deposee" written in white, indicating that it was a legally registered trademark, and the "famous brand" was born.

As a result of the "vertical integration" of luxury stores, the luxury brands we see are mostly direct outlets located on the streets.

In fact, this is not the case. This is the result of an important reform in the luxury industry, and it is also related to Louis Weedon.

In 1977, Henry, ray Camille, a 65 year old Weedon family son-in-law, accepted Louis Weedon's brand management.

After reading a lot of books, Ray Kamil found that in the commercial chain, retailers, especially franchisers with franchises, took the biggest part of profits.

At that time, most luxury companies were still small in size, run by the founders' families, and they were not good at commercial operation.

Ray Camille is not a fashion man, he is a businessman.

He decided to implement a strategy of "vertical integration" for Louis Weedon: he kicked off middlemen and set up a direct run shop directly managed by Louis Weedon.

This is an important reform in the luxury industry and has achieved unprecedented success in finance.

In just a few years, Louis Weedon's profits rose to an astonishing 40%, while most of their competitors could only earn 15%-25% profits.

Nowadays most of the luxury brands use Lei Camille's mode to vertically integrate upstream and downstream.

In the past 30 years, the level of change in the luxury goods industry has moved towards a monetary standard, and the income of the developed countries has been increasing dramatically. The age of marriage between men and women is getting late, which allows them to spend more money on themselves.

And consumers are generally more educated than the previous generation, and have gone through more places, thus developing a better taste for fine life.

Business tycoons and financiers smell business opportunities.

They took advantage of the old brand owners and their inheritors who failed to inherit them. They converted the family businesses into branded businesses, and unified brand elements such as storefronts, shop uniforms, products and even coffee cups for meetings.

Then they aim at the new target customers' middle market.

They are a wide range of socio-economic population, including everyone, from teachers, salesmen to high-tech entrepreneurs, residents of luxury homes, vulgar upstarts, and even guilty of the rich.

Executives of luxury goods companies explain that this is to achieve "democratization" of luxury goods so that luxury can be "accessible to everyone".

It sounds sublime. It seems to be a communist society.

In fact, the goal is precise and clear: try every means to earn more profits.

Charles VUS, the first fashion Godfather

Charles worth is honored as the father of modern advanced custom dress.

In the middle of nineteenth Century, women wore large size skirts, with a Petticoat Skirt underneath them, also called petticoat frames.

Later, he invented the skirt.

He was called the father of modern advanced customization because he did not make clothes that he was asked to customize, unlike his peers.

He has to design a season fashion for customers to pick each season.

He was one of the first designers to host the fashion show, and was the first designer to sew the signature label on his clothes.

He decided what fashion trends were, and then there was a crowd.

"Women are willing to put down any form to dress him up."

The historian at the time was evaluated by Hippo Ti Tyne.

Oscar ceremony -- the most important publicity opportunity for luxury brands

The Oscar presentation ceremony is the most famous celebrity event and the most important publicity opportunity for luxury brands.

Carol Brody, Harry Winston (Harry) jewelry company, told reporters that if a celebrity was photographed wearing your product on the red carpet of the Oscar presentation ceremony, "every month's sales volume would go up once more" and it would last for several years in.

Dressing up stars is the most effective way to attract attention. "

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