Luxury Brands Are Playing A "Sales Promotion" In China To Protect Brand Value.

　　 Luxury brand A new round of global price increases is coming, but due to sluggish sales, a high margin has aroused concern in the industry. Beijing Business Daily reporter survey found that Chanel, Ferragamo, Cartire and other luxury brands have increased prices in China, the highest range of 15%. In the eyes of the industry, luxury brands can only use more crazy prices to maintain the image of brand value increase and make up for the loss of profits.

Beijing Business Daily reporter visited Cartire Parkson Shopping Center counters yesterday, and Ferragamo Xinguang heaven and earth counters, the responsible person confirmed the rumors of price increases. Cartire executives said Monday that leather goods had risen in price, a price of 19 thousand yuan. A leather bag It has risen by more than 2000 yuan, or up to 10.5%. The head of the Ferragamo counter said that the shoes and scarves sold in the shop had already risen in price, and the increase was not small. In this round of price increases, Chanel's global price increase has reached 15%, but it has not yet been transmitted to the Chinese market, but this is only a matter of time. "Generally, luxury brands focus on collective price increases in July and August, but this year's price rises earlier. In contrast, Louis Vuitton's annual growth is relatively stable, basically in 3%-5%, mainly due to the early entry into China, and the consumers who use the brand are many.

Insiders believe that Luxury goods This sharp increase in price is facing a depressed market environment. Data showed that sales of luxury brands in China increased by only 2% last year, which has remained at around 30% for several years.

Zhou Ting, director of the luxury goods industry and President of the Institute of wealth quality, said the price of luxury brands was aimed at strengthening the value added to consumers. Beijing Business Daily reporter found that many previously known as "hard luxury" top brand in the same period discount sale. For example, Dior, Burberry and other brands sell some products at a low discount of 40 percent off, and Hermes, who never discount, sells 40 percent off in Hangzhou stores. Analysts believe that luxury brands, while raising prices on the side of "frenzy" and selling goods at a low discount, are creating price differentials in order to attract consumers to panic buying.

In the industry view, the use of price increases to promote sales is not without reason. Compared with the cautious consumption in the first tier market, the invisible rich group carried the banner of luxury consumption in the two or three tier cities. Although they are small in number, their spending power is considerable. Moreover, this group of people is still at the initial stage of luxury brand pursuit, and their lack of concern about their core concepts, origin and so on. This kind of consumption concept makes commodity price the main factor to decide whether the brand is good or bad. However, Zhou Ting says it is not suitable for some consumers to keep the brand attractive by rising prices, especially in emerging markets, which are becoming more and more mature. She suggests that luxury brands will have a way out of fashion and popular products in the future.