At least once a year, the tide of luxury goods prices is quietly coming. Recently, Hermès released price increases, citing rising prices of raw materials such as silk and leather and fluctuations in exchange rates. In this regard, netizens yelled too much, ‘This reason is too nonsense. When are luxury goods priced according to the cost of raw materials?’ Some netizens said that luxury goods are nothing more than a reason to routinely increase prices.
Every year, luxury brands will increase their prices once or twice. The reporter visited GUCCI, Dior, Celine and other brand counters and found that in recent months, many brands have indeed raised the prices of some products, but compared to overseas Regional and previous years, this year’s actions are relatively ‘low-key’.
Hermes announces price increase next year
Recently, the luxury goods giant Hermes Group announced plans to raise prices next year, citing rising prices of raw materials such as silk and leather and fluctuations in exchange rates.
The latest results show that Hermès sales in the first half of fiscal 2013 reached 1.672 billion euros, an increase of 11% year-on-year, and net profit increased by nearly 14% year-on-year. Among them, the Asia-Pacific region except Japan maintained a growth momentum, an increase of 17% year-on-year. Hermes said that the Chinese market continues to show strong vitality. However, due to the general downturn in the watch industry, sales of Hermès watch business fell 1% in the first half.
Hermès attributes the price increase next year to the increase in raw material costs, which can alleviate the impact of exchange rate fluctuations on the brand. For example, the yen weakened against the euro, while the Japanese market accounted for almost a fifth of Hermès’ global sales.
The reporter learned the information about the price adjustment plan from the Hermes counter, and the other party said that it was not clear. He called Hermes Shanghai and did not get a clear answer.
GUCCI, Cartier, Celine and other recent price increases
Dior women’s clothing counters have also quietly raised the price of some products recently, mainly involving some leather goods. ‘Classic LadyDior series, Diorissimo and other styles of bag prices have been increased, but not much, at around 500 yuan. For example, the original price of 32,500 yuan, LadyDior bags, now adjusted to 33,000 yuan.’ Dior counter staff told reporters that this The counter has only increased its price since August last year.
Prior to Dior, GUCCI, Cartier, Celine and other brands also successively adjusted prices in recent months.
In April, the prices of some GUCCI leather goods increased by about 5%. ‘It only involves a small amount of bag money, and the price increase is basically around a few hundred yuan.’ The relevant person in charge of the mall revealed.
At the end of April, Cartier also adjusted the prices of watches and jewelry online. The store manager said that the increase was not large, basically within 5%. ‘Under the influence of rising raw material and labor costs, the company will adjust the prices of goods from time to time. ‘
In early May, Montblanc also adjusted the price of goods across the board. The prices of watches, belts, writing instruments, etc. all rose by 3% -5%.
Just over a month ago, Celine also raised the price of some leather goods, involving its signature smiley bags and other bags, with price adjustments ranging from 5% to 10%.
And LV, CHANEL, LOEWE and other brands, in recent months have not adjusted prices. People in the mall said that CHANEL has not adjusted the price for one and a half years, ‘but the price of its classic models has increased a lot in the past few years, such as the 2.55 chain bag, from about 20,000 yuan in 2009 to the current 40,000 yuan, the price has more than doubled in 4 years. ‘
Purchasing sellers say overseas gains are even greater
‘A message from a friend from the United States today, CHANEL began to adjust the price of classic models by more than 15% from September 1, which means that after September 1, the price increases of CF, 2.55, leboy and other models are at least 700-900. US dollars, equivalent to 4200-5400 yuan! ‘The day before yesterday, Miss Zhang lamented on Weibo that the price of her favorite brand was rising again this time.
A seller engaged in overseas purchasing of luxury goods told reporters that since September CHANEL has increased prices across Europe, with an increase of 8% -30%. ‘Classic models are bound to rise. Chanel 2.55 is up 20%. The price of the original medium bag was equivalent to approximately 29,000 yuan. Now it is almost 35,000 yuan.’
In addition to CHANEL, Prada, GUCCI, LV, Dior and other brands have all experienced price increases in the European market recently. ‘The main price increases are bags. Prada and GUCCI discounts also have price increases, most of which range from 8% to 10%. For example, Prada discount wallets have also increased by 20 to 30 euros.’ One in Italy Disclosed by sellers engaged in overseas purchasing.
Since July this year, LV has raised the average price of leather products such as handbags and wallets in the Japanese market by about 8% to counter the weak yen.
Many overseas purchasing sellers are busy selling the goods before the price increases. ‘The key recommendation is that the Lady Dior that the owner bought before the price increase has now increased by 100 euros, and it is still sold at the price before the price increase!’ A seller is touting a black patent leather Lady Dior bag from France.
Insiders: China’s luxury goods outflow has further intensified
Due to rising factors such as raw material prices and labor costs, and in order to maintain the brand’s status, considering the consumer’s “buy up or not buy down” mentality, each luxury brand generally adjusts its price once or twice a year. In general, prices are adjusted in Europe first, followed by domestic ones, and corresponding responses are made about a month later.
However, in terms of the frequency and range of price adjustments this year, compared with previous years, compared with overseas regions, the movement of luxury goods in mainland China is considered to be ‘low-key.’ Insiders analyze that in the current economic environment, consumers are more sensitive to prices. ‘From the second half of last year, the growth rate of luxury goods in the Mainland of China has slowed down. It may be more unfavorable to increase prices if they increase prices; but in order to maintain the status of luxury brands, prices must be increased.’
Even after experiencing price increases, the prices of luxury goods overseas are still lower than domestic counters without price adjustment. Many industry insiders have pointed out that overseas purchasing is a major reason for the shrinkage of the domestic counter luxury market, and the price difference between domestic and foreign luxury goods has made Chinese consumers’ luxury consumption further overseas.
According to the 2013 China Tax Exemption Report released by the Wealth Quality Institute, China may or may become the second largest tax-free consumer country in the world; on the other hand, the outflow of Chinese luxury goods has further intensified this year, with only 20% of the people Buy luxury goods in mainland China.