Luxury goods ahead of a new round of price increases in China slowing down the expansion of the impulse

Since the beginning of April, Celine, Chanel, Dior and other related products rose by more than 10%, breaking the new market in the early days of the practice of several rounds of price increase

Luxury goods ahead of a new round of price increases in China slowing down the expansion of the impulse

Rumors of a possible price hike in luxury goods have been widely circulated in fashion forums since April. Recently, careful consumers found that the wave of price inflation has spread from Europe to the Chinese market.

In the C Eline counter, large ordinary leather "smiley bag" price of 20,000 yuan, and the price of about 17,000 yuan before the increase of 3000 yuan, or about 18%; Chanel's "Classic series" Double bag cover Large bags before the price increase of about 37,500 yuan, after prices for 41,200 yuan, or about 10%; Dior classic "Lady Dior" large sheepskin bag price for 32,500 yuan, compared with the price before the 29,000 yuan increased by 3500 yuan, or 12% The small patent bag rose from about 25,000 yuan to 29,000 yuan, or about 16%.

Despite not rushing to the forefront of the surge, Cartier also revealed that "will certainly rise." Although LV China's PR people to reporters denied that the company's products to adjust prices, but the Internet recently crazy biography, the end of LV will increase the full price 3%-5%. The rising tide of luxury goods, which had been concentrated in 7-August, suddenly came early this April.

Adhere to the "high demand" strategy

Luxury-goods giants in Europe and the United States are breaking past practice. Previously they were accustomed to the new product listing 1-2 times a year, but last year, luxury goods companies in China's massive price increase of three times, some cumulative rise more than 25% to 30% of the annual price increases.

Although the people of the L V and Dior believe that price increases are linked to and influenced by many factors such as currency exchange rate, raw materials and labor costs, in the eyes of the industry, periodic price adjustments are likely to become a conventional means of regulating the market for luxury goods companies. "Many of China's stores are short of supply, and rapid expansion of the shop has exceeded the supplier's logistics affordability." Kun, China's chief representative for the World Luxury Goods association, said one reason for the rise in luxury goods was to slow market growth and reduce pressure on suppliers.

and "Screening quality customers, maintaining the loyalty of the core consumer to the brand and maintaining the stickiness of the consumer is another major reason. These brands have grown too fast in the past, and too many people have bought these brands, making them less attractive to core consumers," Burberry. "Zhou Ting, director of the Uibe Luxury research center, said. The price increase in sales can also control the number of sales of goods, raising the high-end scarcity of commodities.

"No matter how consumer psychology swings, we always have to be at the top of the consumer pyramid and stick to that principle as much as possible." "Since 2 0 0 9 years from the sister company B o Tteg AV Eneta joined Gucci, as CEO of Patriziod I M arco more and more emphasis on the use of precious materials and the promotion of brand technology." This "fine-tuning" strategy has increased the average sales price for the brand handbag by 30% per cent, but it has led to growth in sales and profits in the debt-battered Europe and China, which has slowed growth. It is reported that 2011 Gucci sales growth of 17.9% to 3.14 billion euros, profit before the tax increase of 25.2% to 9 € 4.7 billion.

Burberry growth slows significantly

In the face of a slowing economy and sales slowdown, if it is still able to maintain the supply of goods in a state of demand and bring performance growth, it is the hope that the steady development of luxury enterprises is undoubtedly the safest remedy for the rescue. Indeed, the Chinese market, the main engine of growth for global luxury retailing, is facing this risk.

In general, Asia is the fastest-growing region of L V, making it far more mature than the market. But Guillony, chief financial officer of the Louis Vuitton group (L-V MH) in France, said in a conference call in the first quarter of this year, the L-v MH garments and leather products division, including L V and Sailin and Fendi, grew by about 10% in Asia, with 18% in Europe, 12% in Japan and 11% in the United States. Growth is the slowest growing region.

Coincidentally, the UK luxury goods company Burberry Financial Director C ARTW right in the previous day's conference call, also revealed that the group's sales in China from the third quarter (October 2011 to December) year-on-year growth of 30% slowed to 20% in the second half of the fiscal year. That means Burberry's sales in China grew only around 10% this January-March.

But there are companies that continue to maintain high growth. Prada up to the end of January this year, the results of 2011 to maintain a high level, the period of 3 Hong Kong and Macao, the same store sales growth of up to 40%. The U.S. high-end fashion brand C O A C H Chairman and Chief Executive Officer L EW F Rankfort said sales in China grew by as much as 60% in the third quarter ended March 31. "The Chinese market is expected to achieve a steady sales target of at least 300 million dollars this quarter."

However, a Prada spokeswoman said it was difficult for the luxury market to maintain its past growth in the overall industry. Earlier, the world's leading strategic consulting firm Bain Partner Bruno has predicted that the 2012 Chinese luxury market growth will slow to about 20%. In contrast, China's luxury goods market in 2010 reached 87.1 billion yuan, an increase of 27%. In 2011 This market size is expected to be 100 billion yuan, the overall increase will reach 25%-30%.

Chinese shop expansion continues

While the risk of a slowdown is in the front, luxury-goods brands believe that sales growth in China will not slow sharply. The reporter noted that L-V MH and Burberry announced a slowdown in the fiscal quarter, which included Chinese travel to foreign countries to buy luxury goods during the Spring Festival. L V MH Chief Financial Officer Guillony said that the growth in sales in Europe was half of that of tourists, and the largest group of Chinese people. This is the Chinese mainland L v than France price 45% to 47% higher, the price difference allows Chinese consumers to focus on foreign shopping consumption, affecting the domestic market growth.

China's economic growth is slowing, but demand for the luxury goods market is still accelerating. To this end, the major luxury goods giants did not slow down the pace of expansion of Chinese stores.

According to Prada, the company plans to open 160 new stores this year and next, based on a continued judgment on China's domestic demand for luxury goods, and half of the 2012-year plan will be in China, the rest of Asia, the Middle East, Brazil and Morocco, the "fast-growing" market. Gucci will open 45 new stores this year, some 20 will be in the Asia-Pacific region, China's expansion will focus on two or three-line cities, and the company will redecorate Beijing, Shanghai, part of the store. An extension of a Hong Kong luxury agent told reporters that the company's initial plan for opening a shop in the mainland this year was 60.

Nancy reporter Ting Airi intern Hu Hui

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