The secret of LV and other luxury pricing "psychological game"

"Winter tour Iceland, you will find that there are fish and cheap" became the recent Icelandic tourism advertising words-the "bargain" includes 30 percent shelves of LV.　　The situation in Hong Kong is even more exciting, "It's not just waiting to spend money, it's like waiting for a big government remedy," Huang, who has long lined up to buy brand names on the streets of Hong Kong at the beginning of the year, and the background is the ultra-low discounts offered by luxury brands. "　　In Shanghai, a mall in a few months in a row to do a number of luxury brand special sales, Burburry, Gucci and CK and many other brands.　　As long as there is a sale of luxury goods, some big-name fans will still flock to it-and there is no denying that when people enjoy the discounts of their homes and cars in the financial turmoil, they also want to have luxury goods at a lower price.　　In luxury pricing, price is one of the key elements of its positioning consumers, which leads to a paradox in reality: Suppose a cheap price can buy the same product, then you will not find the "luxury" feeling. The party is reduced, the outing is reduced ... The former symbol of identity, status, taste of luxury goods sales, is bound to be directly affected by the financial crisis, sales decline.　　Will they take the form of a general consumer-price discount? According to the Director of marketing Department of Fudan University School of Management, Fudan-Italy Bockney (Bocconi) fashion and luxury management project, and luxury brand management experts Louxiao judgment, although each round of economic cycle will lead to a luxury brand survival crisis, but they face the crisis did not put "price"　　As an option, that is to say, "Die in dignity," and never achieve the price of ' naked ', because that is tantamount to oneself the posterior.　　He explained that while sales of luxury goods were on sale around the world, the current discount strategy was more about emptying inventories than a low-cost strategy. The "psychological game" of luxury pricing an American says in his blog: Whenever a friend comes to Los Angeles, he must show them around rodeodrive (where all the local luxury brands converge)--few people really spend money there, but someone's going to be curious to walk in, Then I wondered why a Versace jacket could sell 3000 dollars at such a high price.　　The American explanation for this is that Versace, the only one, is enough to show how different they are from the gap (another mid-range clothing brand), although the latter only sells 100 of dollars. Pricing is unique enough to increase the mystique of luxury brands to ordinary people.　　The question of "How much money to buy a suit, even in a swarthmorecollege," has puzzled Barryschwarz, a psychology professor at the University of Warwick. Schwarz the first time in Philadelphia Boyds Men's shop to see the shelves of a price of 3000 dollars of BRIThe first impression, Oni, a suit for the Kennedy family and other American elites, was that the price was "really ridiculously high". The experience even sparked a series of Schwarz research on luxury pricing, which he described as "anchor",　　It is they that set the price ceiling for goods that are not clearly priced – the usual pricing rule in the luxury and fashion industries. "It would be wrong to assume that a consumer wants to try to decipher the pricing of luxury goods from the consumer itself," he said. "Louxiao said. Take a bottle opener for example, the function of having a bottle opener is not enough for luxuries, because those sky-high prices to meet the needs of people for aesthetic, so from the design, concept, need additional input; In addition, the bottle opener must become a symbol of social status, reflecting a certain cultural taste.　　So luxury-goods manufacturers need to invest extra money in order to cater to the "spiritual" needs of the latter. Wolfgang-Ratsler, in his book, "Luxury brings prosperity", said: Luxury goods manufacturers will try to maintain lower costs and avoid waste, but the question about cost is generally second.　　This brings the distinction between a brand and a non-brand: The former always asks himself "What is the best thing I can use on this product", while the latter asks himself "What is the best thing I have available within the prescribed cost range".　　"Sky-high" pricing method in accordance with the prevailing "price pricing method", Product prices = manufacturing costs + research and development costs + marketing costs + sales costs + management costs + exchange gains and losses + reasonable profit + Brand premium. "But this pricing method clearly does not apply to luxury brands, each company, each family business has its own completely different pricing rules, and secrecy." One of the most important principles is to maintain the same product in different markets across the world price consistency. Expensive shipping costs, tariffs, and huge spending on international retailing and marketing tend to keep luxury goods expensive, and their sales tips are not ' large quantity ', but expensive, and then sold at a limited price.　　"Louxiao said. As an example, Gucci's famous quote is "make a product scarce, you can sell sky-high". So, when Gucci's boss bought YSL, he first closed most of the YSL stores, hoping to prove the possibility that higher prices and less supply could lead to profit growth.　　Sure enough, that year YSL's profits did climb. Therefore, these astronomical labels ultimately to consumers a sense of psychological satisfaction, and ultimately make the price of the 3000 dollar suit for the Barryschwarz in stunned, but also involuntarily floating up his acceptable psychological price, and finally, he chose a set of prices "only" 800 dollars of suits out of the shop door. To make this analogy, it's not hard to understand the psychology of consumers who buy LV keychain, chanel sunglasses or Prada wallets.-they proved the rationality of the high price. Given the absence of a worrisome financial crisis, there may be little doubt about luxury brands ' high-priced strategies.　　But the price of popular consumer goods is floating downward, and people are reminded that luxury brands should also be adjusted in price. But Louxiao that these doubts are unrealistic, since luxury brands do not have too much room for "current" prices.　　In fact, even before the man-made "scarcity" of the YSL, but in a year to increase the profit from 5.6% to 8%, so Louxiao that high price positioning does not give luxury brands to the public imagination of "profiteering." "In the 80 's, many people imagined that family companies that run luxury brands were enjoying huge profits, so there were investment banks buying luxury goods companies, but they quickly discovered that luxury goods were costly, risky, highly skilled and complex in management skills." So they have abandoned this category of business, and finally these brands are several large international luxury group integration.　　"Louxiao said. The survival crisis behind the glamorous "until now, we have not seen any structural problems with luxury pricing, and even in the face of the international financial crisis, these luxury brands do not have a ' real ' price space. Assuming that in such cases they ' die ' because they maintain a high price and do not have a sales presence, then there is no reason for them to come back.　　Louxiao said to the first financial daily.　　In the international context this year, these sleek fashion brands are inevitably experiencing winter. At the beginning of October 2008, Bain consultancy announced that, after the steady development of 10,　　Global luxury sales will fall to 7% by 2009, and sales of high-end watches should continue in 2009, according to the latest data released by the Swiss watchmaking Federation, but this year's growth will not exceed 5%, compared with 2008 's growth rate of 10%, 2007 years or even 16%. At the same time, Cartier, the famous watch brands such as the owner of the calendar group also warned about the uncertainty of the future, Ceojohannrupert said, Annual sales growth in October 2008 slowed to 1.6%, while sales in the US and Japan fell by 2% and 7% respectively. Bulgari's days were also tough, with its watch part dropping 9 in the 5.8% months before 2008, and 7.4% in July to September. You will see Hang Lung Plaza in the store frequently in the state of decoration, this is because the brand is constantly exiting, and new brands re-enter. Because most luxury brands, without exception, suffer from expensive rents, they need to spend more than other consumer goods in the form of "guaranteed" rent payments. Suppose they can't sell a bag for days, which means they need to pay their own guaranteed rent. "Louxiao said. The Hang Lung Plaza He lists is a collection of core locations in ShanghaiThe top international luxury brands of high-end shopping malls.