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Luxury pricing secret: do not prefer to die with a decent price, "Iceland, you will find fish and have bargain" has become a recent tourism ads Iceland words - there is a world's "bargain" including 30% shelves LV.
Hong Kong's situation is even more excited, "That simply is not waiting for go spend money as if waiting to receive at a huge relief from the Government" - Huang described the streets of Hong Kong at the beginning of the end of long lines to buy name plates, while the background is the luxury brand of ultra-low give discounts.
In Shanghai, a shopping mall in a few short months, consecutive to do a number of luxury brand Sale, Burburry, Gucci and many other brands as well as CK stream.
Discounted luxury items as long as there is news of promotions occur, some of the big fans will still rush - is undeniable that the people in the enjoyment of a house, a car in this round of financial turmoil in the discount, they also hope the same can be cheaper have a luxury price.

cheap north face jackets And luxury goods pricing, the price of its targeted consumers are one of the key elements, which led to the inevitable reality of the existence of a paradox: the assumption that a low price can also purchase the same product, then they would look in vain for "luxury" of feeling.
Parties decline to go out ... ... the past, a symbol of reducing the identity, status, taste and luxury goods sales, necessarily directly affected by the financial crisis, sales fell. They will be taken to the general consumer price promotions way?
In accordance with the Fudan University School of Management, Assistant Professor, Department of Marketing, Fudan - Italian Bocconi) fashion and luxury goods management project director of the Chinese side, luxury brand management experts Lu judgments, even though each round of the economic cycle will lead to a survival of luxury brands crisis, but they face the crisis did not put "price" as optional, that is to say, "Even with dignity 'die', we can not price the 'streaking', because that would be tantamount to self-unrepeatable Road. "
He explained that, although all over the world are from discount luxury goods sales information, but the discount strategy more associated with empty inventory, rather than low-cost strategy.

Luxury pricing "psychological game"

An American in the case of a blog Description: Whenever a friend to Los Angeles, he will take them cheap north face jackets Rodeo Drive (all luxury brands together to) - very few people really spend money there, but someone will be curious about the total go into, and then surprised at why a Versace jacket of 3000 U.S. dollars can sell such a high price. In this regard, the American explanation is that - Versace, only this one brand, is enough to show them and GAP (another mid-range clothing brand) What is the difference between the price, although the latter for only 100 U.S. dollars.
Pricing on the unique enough to increase the luxury brand for the people of extraordinary mystery. Thus, "how much money to buy a suit sets bounds even move," this issue once Swarthmore College (Swarthmore College), Professor of Psychology, Barry Schwarz very confused.
Schwarz first Boyds in Philadelphia men's shop to see the shelves of 3000 U.S. dollars on a price of Brioni (a Kennedy family, such as the United States give the upper classes of society are being installed to provide the VENDOR) suite, the first impression that prices are "really high outrageous . " After that experience even in the luxury pricing for Schwarz triggered a series of studies, he will be the "commodity price" described as "anchor" is their pricing for some of the merchandise can not be clearly established a price cap - This is luxury goods and fashion industries, the pricing rule used.
"Assuming a consumer from consumer goods to try to decrypt its own luxury pricing is making a serious mistake." Lu said. As an example of a bottle opener, bottle opener has a function for luxury goods is not enough because those sky-high price of goods to meet the aesthetic needs of people, so from the design, the concept of up, we need additional input; In addition, the opener must be a symbol of social status, reflecting some kind of cultural taste. Therefore, luxury goods manufacturers need to re-invest additional funds, with a view to cater to the latter "spiritual dimension" required.
Netzler cheap north face jackets was in the "extravagant affluence brought about by" the book states: luxury goods manufacturers will also strive to maintain a lower cost and avoid waste, but the general question about the cost are secondary. This will bring brand-name and non-prestigious distinction: the former always ask ourselves "Can I use this product at the best things are what"; the latter question their own "me at the cost of the scope of the best things available What is. "

"High price" pricing

In accordance with the prevailing "price pricing", Product Price = manufacturing cost + R & D costs + marketing costs + selling expenses + administrative expenses + exchange gains and losses + reasonable profit + brand premium.
"But obviously the pricing does not apply to luxury goods brand, every company, every family business has its own completely different pricing laws, it is also kept secret. One of the most important principle is to maintain the same product at different global Price on the consistency of the market. and one of the expensive transportation costs, tariffs and international retail and marketing expenses resulting from the huge cost of luxury goods are often high, their sales secret is not a 'high volume', but expensive cost after Price limited to expensive to sell. "Lu said.
As an example, GUCCI famous answer is "scarce hard to find a product, you can sell high price." So, when when the big brothers GUCCI after the acquisition of YSL, first turn off the bulk of the YSL shop, hoping to prove that high-priced and less supply may lead to the possibility of profit growth. Sure enough, YSL year profit rose indeed.

Therefore, these tags astronomical finally give consumers a sense of psychological Satisfied, finally making 3000 U.S. dollars as the price of the suit for the price of the Barry Schwarz dumbfounded at while at the same time involuntarily up its own psychological acceptable price, eventually He was elected a price of "only" 800 U.S. dollars out of the suit shop. Does this kind of analogy, those who buy LV Keychain, Chanel sunglasses, or Prada wallets of consumers is not difficult to understand the psychological - and they proved that the high price is reasonable.
Assuming no worrying financial crisis, perhaps for the high-priced luxury brand strategy will be slightly less questioned. But the mass of consumer goods prices to fall, people can not help but to whether the association should also be a luxury brand at the price adjusted accordingly.
But Lu believes that these queries are impractical, because the price, the luxury brands do not have too much "cheap north face jackets" space. In fact, even before the man-made "scarce" scene of YSL, but also within a year of profits from 5.6% to 8%, so that the high price of Lu positioning does not give the luxury brand in the public imagination " profits. "
"Century 80's on a lot of people imagine luxury brands operating in the family business to enjoy huge profits, they buy luxury goods have investment banking company, but they soon discovered that the operating costs of a luxury high risk, high in technology, the complexity of management skills . So they have to give up this category of operators, the last of these brands have been several large-scale integration of the international luxury goods groups. "Lu said.

Dressed behind the crisis of survival

"Until now, we do not see on luxury pricing structure at what problems, but, even if the international financial crisis are encountered, these luxury brands do not exist 'cheap north face jackets' price space. The assumption that in such cases, they Since maintaining a high level of price, but not sales of the existence of 'dead', then the future positioning of the brand still exists, otherwise there is no reason why they comeback? "Lu on the" First Financial Daily "said.
At the international level this year, these appearances dressed fashion brand has inevitably experienced in winter.
Early October 2008 Bain & Company announced that 10 years of steady development, the global luxury goods sales to decline in 2009 the proportion will reach 7%. According to the Swiss watch industry federation released the latest data, high-end watch sales in 2009 should be able to continue, but this year the growth will not exceed 5 percent, compared with the 2008 growth rate of 10 % in 2007 even as high as 16%.
At the same time, Cartier, des Nations and other well-known watch brand owner RICHEMONT Group uncertainty also warned that its CEO Johann Rupert said Richemont Group in October 2008 sales growth slowed to 1.6 percent in the United States and Japan's sales decreased by 2% and 7%. Bvlgari days by no means better part of their watches in 2008 at 9 months ago turnover decreased by 5.8% in July to September is the rapid decrease of 7.4%.
"You will see the Hang Lung Plaza is located in the store frequently at the state of decoration, this is because the brand has continued to exit, while the new brand re-entry. Because most of the luxury brands are, without exception, to bear the expensive rent, in accordance with the 'Security at the end into' rent payment, they need to rent part of expenditure is higher than other mass consumer goods. the assumption that the past few days they can not sell a package, it would mean that they need their own insurance to pay rent at the end. "Lu said. He listed Hang Lung Plaza Shanghai core sites are brought together the largest international luxury brands of high-end shopping malls.
On one side is the high cost of imported luxury goods, on one side are the group buy because the financial crisis caused by shrinking assets. According to "investigate reports of Citibank million Regal 2008" survey, held by more than five million Hong Kong dollar liquidity of the millions of rich, compared with 2007, asset losses amounting to 36%; 2000000-5000000 of millions of Regal Hong Kong dollar liquidity asset losses amounting to 10 percent; and current assets of 100 million Hong Kong dollars to 200 million Hong Kong dollars of millions of the rich, asset losses amounting to 13%.
"So you will see a luxury brand has been through the quarter Product sale to clear inventory of forms, often accumulated through its own VIP customers buy a number of selected first, and then a group sale, basically can sell out. However, if has not sold, they will withdraw from the market. "Lu said. Does not mean that they will reduce the overall pricing, Lu at it, it would be tantamount to dig your own grave.
"The list goes on - belong to the front line once before the top of the Pierre Cardin of the problem because their operating continuously lower prices now, people will prefer to buy luxury goods of their products you?" He said.