Luxury Brands In China Reduce Prices In A Disguised Way And Mature Market Risks Are Low.

In the brand of slower growth, LVMH group first followed Chanel into the price cutting camp in China.

The group's UHA quickly followed up, including China's 5%-7% reduction, and the price of individual watches reduced by 35%, and its list declined by 5%.

Dior also cut 10%-20% in the same period.

A month later, Cartire [micro-blog] lowered its price in Hongkong, China by 5%.

Before Chanel launched its price cut in China, Switzerland's top luxury watch Patek Philippe has cut its price by 18% in China.

However, some brands still consider the feasibility of price reduction and wait for the influence of the strategy.

Versace, which announces price cuts, is still slow to hear.

Relative to the direct reduction of the brand, some brands take a discount in disguised form.

For example, GUCCI launched the minimum 50 percent off season of "every year", but this two month discount cycle will obviously eliminate inventory and bring forth new ideas as an important goal.

Luxury brand in UK

Some 50 percent off promotions were also launched in May.

In addition, the PRADA, which had previously been publicly announced on the conference call, will be raised by overseas media in Europe.

If it is in fact, it will become the second time after the Chanel to reduce the price in China.

The brand that will raise the price will make the global parity quickly realized, and it will also mean the rapid return of shopping in Europe.

Analysts said that almost all the mainstream now.

Brands have joined the price reduction or disguised price reduction army.

This round of subversive price cuts began with the first-line luxury brand Chanel, and the top luxury brand Hermes also reduced the price differentials in Europe in the form of price hikes and China's inaction.

It can be said that the entire luxury industry has entered the downward price channel.

Zhou Ting, President of the Institute of wealth and quality, believes that the core of luxury price in the past is the brand premium, not the product itself. The annual price increase is only a "gimmick". However, the luxury industry is different from the traditional consumer goods industry. Once it enters the mature market with sufficient information, it will enter the recession directly from the profit growth period.

Emerging markets are their future high profit battlefields.

Sun Yafei, founder and CEO of the luxury goods network in Fifth Avenue, said that luxury goods will gradually develop into a normal state similar to that of the European market in the Chinese market. The price will not be more expensive than the country of origin, nor will it lead to a disorderly crazy discount, but a regular promotion season.

The global retail development index released by A.T.Kearney, a US consultancy, shows that China has become a "mature market" for luxury goods rather than a "emerging market" as it used to be.

The report also said that in such a Chinese market, the competitiveness of the brand itself will be highly valued, but in fact business risk will be lower.