Analysis Of The "Old Recruit" And "New Trend" Of Luxury Brands To Boost Their Performance

< p > from mid April 2014, Chanel (Chanel) increased the price of the Classic Flap series medium and large price by 450 euros; the 2.25 series rose by 450 euros per model; the Le Boy series medium price rose 300 euros, or around 15%.

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< p > not only is Chanel, but most of Cartire's products have also implemented price adjustment since April 21st. The price range of different products is different. The price increases range from 6% to 10%. Ferragamo products, including clothing, leather goods and footwear, have also been raised in April 18th, and the price has risen from several hundred yuan to 1000 yuan.

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< p > the industry believes that under the global economic downturn, luxury brands have their brand image to maintain and guarantee their high profit margins. On the other hand, to boost their performance, luxury brands are also delineating consumer loyalty and brand image through cross-border activities.

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< p > < strong > a href= < //www.sjfzxm.com/news/index_c.asp > price increase < /a > stable image and high profit < /strong > /p >

< p > although the official comment of luxury brands on price adjustment will generally be attributed to a series of operating costs such as raw material prices, labor costs, logistics and opening stores, Li Zhiqi, chairman of the future marketing consultancy group in Beijing, seems to believe that the price rise of luxury brands has also ensured its high profit margins under the global economic downturn and declining sales.

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< p > < < a href= > //www.sjfzxm.com/news/index_c.asp > > luxury > /a > price is undoubtedly one of its more important forms, "Wu Yanhuan, analyst at Shang Pu consulting, told reporters." luxury goods need constant price adjustment to maintain brand positioning and image, so the speed of luxury growth has slowed down in the past two years, but it has not affected its habitual price rise. "

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< p > "value preservation and value added" are the positioning of luxury brands for themselves.

Wang Ying, a partner in PWC's China retail and consumer goods industry, told the first Financial Daily reporter that the logic behind the rise in the price of luxury brands is that the growth of their brand prices should exceed the inflation rate and exceed the depreciation rate of currencies.

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< p > in her view, some classic brands of luxury brands are not only consumer goods, but also collectibles and investment products. The price rise of luxury brands is also a way to catch consumers' buying and selling mentality, and let consumers feel that buying such expensive things today is more cost-effective than tomorrow.

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< p > "luxury habitual price increase is also a marketing tool". In Wu Yanhuan's view, high price in luxury sales market will not hinder sales, but will stimulate consumers' desire to buy and sell.

The consumer of luxury goods is not sensitive to the price, even the increase in 5%~10% will not affect the buyer's purchase behavior.

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< p > Pedraza, President of the luxury Research Institute of New York Research Institute, thinks that the other intention of increasing the price of old luxury goods is to distinguish between their own products and cheaper entry level luxury goods, hoping to maintain "high profile" to maintain their image.

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< p > < strong > < a > href= > //www.sjfzxm.com/news/index_c.asp > > pboundary < /a > coping with "attack" < /strong > /p >

< p > in fact, under the double attack of fast fashion and light luxury, the traditional luxury market is becoming increasingly difficult.

From the annual report of the 2013 financial year, which has been released by all the luxury brands, the luxury clothing, shoes and caps and bags products have declined significantly in the past year.

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< p > luxury brands originally focused on traditional clothing and footwear products are trying to cross the border and further lock in high-end consumer groups.

The British luxury goods giant Burberry group announced that it will enter the luxury skin care market in 2015, and Italy luxury brand Gucci has announced that it is secretly developing Gucci's first cosmetics series with Procter & Gamble, and is scheduled to go public in 2014. The news has been confirmed by Gucci recently.

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< p > the extension of larger span is towards service brand and sales life style on the other hand.

In March of this year, Prada, a well-known luxury brand, announced that it had successfully acquired 80% stake in Angelo McKay limited, which owns the Mackey pastry, the Milan dessert brand.

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< p > in fact, luxury brands are extending to all fields of life.

In Seoul, South Korea, Hermes opened a coffee shop with brand branding from architectural style to product details. Gu Chi also opened the same brand coffee shop in Italy, Florence, Japan, Tokyo and Shanghai in China. Chanel has a restaurant called Beige in Tokyo, Japan.

In addition, Versace, Bvlgari, Armani and other brands in Australia, Gold Coast, Bali Island and Dubai and other famous resort hotels.

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< p > old brand luxury goods cross-border development, a luxury industry analyst told reporters, partly because of the slowdown in the performance of traditional clothing and footwear products, the brand needs to improve performance and brand image in other fields; on the other hand, these luxury brands often have regular customer groups, and expand the category to delineate and enhance consumer loyalty.

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