Monday, September 10, 2018

The rising tide of luxury goods is quietly coming. Hermes is rising due to raw materials.

The latest results show that Hermes sales in the first half of fiscal 2013 reached 1.776 billion euros, an increase of 11% year-on-year, and net profit increased by nearly 14%. Among them, the Asia-Pacific region except Japan maintained its growth momentum, with a year-on-year increase of 17%. Hermes said that the Chinese market continues to show strong vitality. However, due to the general downturn in the watch industry, sales of Hermès watches and clocks business fell 1% in the first half of the year. Luxury is nothing more than a reason to routinely raise prices. Every year, luxury brands will have one or two price increases. The reporter visited GUCCI, Replica Christian Dior Bags, Celine and other brand counters. It is found that in recent months, many brands have already raised the price of some products, but compared to overseas In the region and in previous years, this year's action is relatively "low-key".

Replica Hermes Handbags announced that it will raise prices next year
GUCCI, Cartier, Replica Celine Handbags, etc. have recently increased prices
Dior women's counters have also quietly raised the price of some products in recent days, mainly involving some leather goods. "The price of the classic LadyDior series, Diorissimo and other styles has been raised, but the range is not large, around 500 yuan. For example, the original price of 32,500 yuan LadyDior bag, now transferred to 33,000 yuan." Dior counter clerk told reporters that this is The counter was the only price increase since August last year.

Before Dior, brands such as GUCCI, Cartier, and Celine also adjusted their prices in recent months.
In April, the price of some leather goods of GUCCI was raised by about 5%. "Only a small amount of money is involved, and the price increase is basically several hundred yuan." The relevant person in charge of the shopping mall revealed. At the end of April, Cartier also made a full-line adjustment of the price of watches and jewellery. The counter store manager said that the increase was not large, basically within 5%. "Under the impact of rising raw materials and labor costs, the company will adjust the price of goods from time to time. At the beginning of May, Montblanc also adjusted the price of goods all over the line, and 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, including its iconic smiley bag and other packages, the price range is between 5% and 10%. And LV, CHANEL, Replica Loewe Handbags and other brands have not adjusted prices in recent months. Merchants said that CHANEL has not adjusted the price for a year and a half, "but its classic model has increased a lot in the past few years, like the 2.55 this chain bag, from about 20,000 yuan in 2009 to the present 40,000 yuan, the price has more than doubled in 4 years."

Insiders: China's luxury consumption consuming further intensified
Due to rising factors such as raw material prices, labor costs, and in order to maintain brand status, considering the psychology of consumers "buy up and not buy down", each luxury brand generally has one or two price adjustments per year. Under normal circumstances, Europe first adjusts the price, while the country follows closely, and responds accordingly after about one month. Even after experiencing price increases, the price of luxury goods overseas is still lower than that of domestic counters that have not been adjusted. Many industry insiders pointed out that overseas purchasing is a major reason for the shrinking of the domestic luxury market. The price difference between domestic and foreign luxury goods has made Chinese consumers' luxury consumption flow further overseas.

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