Luxury Watches Blog Report: Prices for luxury goods market after the confidence of the important reasons, it is the Chinese market. Growing purchasing power of Chinese consumers, it is a luxury brand on the price increase to boost confidence. "Of course, luxury brands to raise prices to maintain their hopes in the minds of consumers 'elusive' attitude, and then trigger their purchases, also contributed to one of the reasons the price surge." Serving the Lord a number of luxury brands Mr. Asia, the main Xidumaike PR that "the future, this price increase will repeat itself."
LV shops
"A Chanel handbag prices have risen more than three months ago, nearly 20%, but even so, the classic Chanel 255 models are still out of stock." Excitedly taking advantage of the July-August quarter of Singapore's discount shopping, Wen That never Rende bustling Orchard Road in the Chanel store empty-handed. The business in China, Thailand, women entrepreneurs in the store 40 minutes outside the row over the long team after less than ten minutes into the store browsing, instant noodle shop with a disappointed look came out.
Although the annual July, August is often the Singapore and Hong Kong to the discount fashion shopping season, but this summer has turned to the major luxury brands to replace the previous sales price promotions. Chanel Shanghai office, told reporters that the particular brand of handbags in several classic styles 1 July last year compared to 7% growth in retail prices ranging from -20%, while the price of most other package shall not float.
"Many favorite summer bag clothing not only did not participate in promotions, but to varying degrees, up the price." Nevertheless, Wen Rende still in the "shopping" in mind to purchase a number of "booty," she said: "The big line prices increasing frequency. If we do not buy, and perhaps more expensive to wait until the fall."
Gucci shops
In fact, Chanel is not the only price of the brand. According to People's Daily overseas edition said June sales of Gucci in some commodity prices in Europe rose 4% to 5%, while the prices of Hermes will follow. Many industry insiders believe LV price increase since February of this year, its sales of some products in Europe is likely to usher in another price increase this summer, although the brand products sold in China, not price.
Rate this double-edged sword
Why the major luxury brands have discounted season prices? The main point the finger of blame because the exchange rate.
June 5 this year, the euro fell more than 4 years against the dollar to its lowest level. And since the beginning of the euro against the dollar decline has been more than 15%. While under the influence of global economic recovery, many luxury brands in the first half of 2010 has been significant growth in sales, but they still choose to price hikes to make up for losses arising from the exchange rate ups.
The production of luxury brands for the euro area, the increasingly serious problem of the exchange rate can be described as double-edged sword. "For those who will travel to Europe in Milan and Paris Fashion Week, the American consumers, after all the big fashion apparel prices denominated in euro, in fact, and the dollar price of those products during the first half almost. For them, these items the actual dollar price has not changed much. "Gucci's CEO Patrizio di Marco, said recently.
Swatch Group watch brands under Hamilton3 prices after January, OMEGA has led hikes in the high watch, or up to 13%, In addition, the Watch Group Richemont also increased from the Cartier brand driven hikes. After the economic crisis, restore inertia luxury watches prices, also reflects the absorption of more than a year the exchange differences from the line.
Chanel store, busy waiter
Especially for those who buy from the dollar zone countries, the luxury brand accessories and raw materials, the depreciation of the euro means that the interests of the shrinking and costs. "Many big-name fashion products, raw materials with U.S. dollars, the euro increased in virtually the final product cost." Serving the many luxury brands in Asia the main Xidumaike Ruder Finn, Mr. (Jean-Michel Dumont), said in an interview "In this case, only by raising product prices because of exchange rates to make up for the long-term adverse effects."
However, the recent exchange rate volatility is not a luxury the only reason for the price. "In the first half of 2010, has a significant rebound in sales of luxury goods, but the debt crisis in Europe, and the budget gap in Western countries may lead to tax increases, which would impact on the price of luxury goods." Luxury Institute of America agency CEO Milton Pedraza said.
"Of course, luxury brands to raise prices to maintain their hopes in the minds of consumers 'elusive' attitude, and then trigger their purchases, also contributed to one of the reasons the price surge." Mr. Du Maike that "the coming kinds of prices will repeat itself. "
And another price increase to luxury goods market after the important reasons for confidence, it is the Chinese market. In Europe, exchange rate, the debt crisis, or tax changes, the growing purchasing power of Chinese consumers, it is a luxury brand on the price increases to boost confidence. "Euro-zone is a huge market, but sales growth is now largely a luxury for some of the emerging country of purchase, especially in China, which promoted the entire luxury industry. This is why now I'm not too worried about the exchange rate and the reasons for the debt crisis . "Paris-based luxury goods fund management company SG president Isabelle Ardon said.
Chanel Store
"If not for sales in China, like the financial crisis in such a short period to restore the brand is not possible." Italian brand Cerruti's CEO Florent Perrichon say so.
, "Bag, watch such a luxury to keep a long time, so the points of view, they range between consumer goods and investment goods. Thus, the production of low and high discount rates should be a luxury country such as China increasingly attractive countries in the rise of the consumer. "known Chinese economist Andy Xie, explained," However, when the flock to China's economic power of international markets, limited supply of both products when the price compared to other luxury goods The price will rise necessities, the diamond belonged to such products. When suppliers can increase production capacity, and want the price fixed, then the supplier will provide sufficient product to meet the Chinese market, such as Mercedes Mercedes-Benz cars and LV bags.
The third "China Rich List 3000 Family," released July 26, Haipu Rui Li Li family to 35.512 billion fortune to become the richest man. Want to Tsai Eng Meng Wang family and family breakdown BYD second and third.
Chinese consumers are willing to pay for the price?
And some senior members of the fashion industry to predict the future price trend is still a luxury. British investment firm Stonehage Investment Partners is the executive director Ronnie Armist one: "luxury products and services gradually, after several years of turmoil swatch, people will come to spend more cautiously, but we can expect that in the future luxury goods price will be slow and steady growth. "
But whether consumers will for this in part because of price increases caused by exchange rate pay for it?
"In the euro zone's second-largest country, France, 2009 people have reduced spending on clothing by 4 percentage points, this year will not be good to go." Secretary-General of the French Federation of Women clothing Francois Marie Grau said, "consumers commodity prices has been troubled. "If we continue to price increases, maybe the French fashion's luxury spending this year for less money.
Another part of the luxury goods when prices are still high-end consumers shopping boldly that "no one knows when the next wave of price hikes coming, might as well put the buy now purchase items hand." Wen Rende is one of them. She said: "From another point of view, whether Chanel or Cartier, the prices of these items means that the future will be more hedge."
July 20, Rhodes luxury public relations and market research in Asia, one of the most important industry, albatrosses and Related Trades Consulting Co., Ltd. released the "2010 Report of the Chinese luxury goods." "This research shows that consumers are considering purchasing the 2010 luxury brand ranking in the top fashion products to capture the absolute superiority, Louis Vuitton, Chanel, Gucci breakdown of the top three. And these brands in the financial crisis as early as After prices have been rising gradually. This shows that prices did not affect the enthusiasm of Chinese consumers. "Mr. Du Maike said.
Into the LV store manager played by long front
And Du Maike as Ipsos Asia Pacific Research Director Simon also believes that even if the collective experience of several major luxury brand prices, Chinese consumers will not be inhibited because of this reason, the enthusiasm to buy luxury goods. Simon said, "people are keen various brands, whether handbag, clothes or cars, consumers have a strong desire to buy. Which directly promoted the sale of luxury goods in China."
However, still there are many brands to choose lower costs, relatively low prices to sell their products. "We will reduce the cost of about 15%." Coach's CEO Lew Frankfort said, "We believe consumers will not be so easy to give, they have been for a long time before there is no price in 2006 to buy brand-name commodities. The economic crisis, consumers We have a new concept of luxury, they seek lower prices and higher quality goods, this is a long-term trend. "" However, many of the company's senior and my opinion is clearly a big difference. "Frankfort also added.
