Recently, there is news that luxury brands such as Chanel and Louis Vuitton will increase prices across the board in China, and the extent will exceed the normal level in previous years. Why is the price increased significantly at this time, and how much is the price increase?
When the reporter came to a shopping mall in Shanghai, he found that even though it was a weekday afternoon, there was already a long queue outside the Chanel store. A consumer queuing up told reporters that this price adjustment is not the first time Chanel has raised prices this year. She said that there was an increase just six months ago. When she bought the CF (package type), it cost 42,600 yuan. Last year, it sold for 38,800 yuan.
The reporter learned that Chanel’s price increase this time is between 15% and 20%. The price increase has been completed since midnight on May 14. The reason why there are many consumers queuing up outside the store is because they mistakenly believe that the store has not yet adjusted the price. The clerk told reporters that the prices of all bag products have increased across the board, mainly due to rising costs.
Reporter: How much has the price of CF (package type) increased?
Shanghai Chanel clerk: About 7,000 yuan. It actually has a lot to do with the increase in raw material leather, and labor is also very expensive.
Then the reporter came to the Louis Vuitton store. The clerk said that Louis Vuitton has already raised prices across the board by about 10%. However, when the reporter questioned Louis Vuitton, When Vuitton had already raised its prices twice in three months, the store clerk said the prices might rise again. Prices increase every year, twice a year. I heard that there will be another increase, around the end of October and November.
The reporter conducted interviews in Lujiazui, Shanghai on the successive price increases of luxury goods. Most consumers said that brand price increases are market behavior and are understandable but not Won’t pay for it. A small number of consumers said that it is currently difficult to go shopping abroad, so if there is a price increase for their favorite styles, they can only accept it.
A report pointed out that due to the epidemic, the size of the global luxury goods market is expected to shrink by 20% to 35% in 2020. According to data released by Louis Vuitton’s parent company LVMH Group, the group’s sales in the first quarter of this year were 10.5 billion euros, a year-on-year decrease of 17%. Industry insiders believe that the luxury goods market has taken the lead in rebounding in China, so this round of sharp price increases is mainly to recover the sales losses in the first quarter.
Pacific Securities Textile Apparel and Retail Guo Bin, chief industry analyst: From now on, its price adjustment scope mainly covers the Asia-Pacific region. The entire Asia-Pacific region, represented by China, has relatively good control over the entire epidemic. Judging from this, the pace of offline consumption recovery in the entire Asia-Pacific region is definitely the earliest. Luxury brands are also trying to replenish their sales at low prices in advance to capture the recovery of this batch of offline demand.
Regarding the reasons for the frequent price increases of products this year, the reporter called the staff of the LVMH Group, the parent company of the Louis Vuitton brand, several times, but received no response as of the broadcast of the program.
Previous reports:
The world’s richest man becomes “the worst in the world”! LV boss lost more than 200 billion, can only China save him?
He is the boss of luxury brand LV, Bernard Arnault.
Before the epidemic, he was the richest man in the world. After the epidemic, he was the person who suffered the most losses in the world.
Yes, he is Bernard Arnault, the boss of luxury brand LV.
The loss exceeded 30 billion US dollars! The person who lost the most during the epidemic
According to Bloomberg News, according to the Bloomberg Billionaires Index, LVMH’s stock price fell 19% this year, and its boss Bernard Arnault Arnault’s net worth has shrunk by more than 30 billion U.S. dollars (over 200 billion yuan), which is more money than anyone else in the world. As of May 6, he had lost about as much money as Amazon Chairman Bezos has made this year.
In January this year, Arnault replaced Amazon founder Bezos as the world’s richest man. At that time, his assets were US$116.5 billion. . Bloomberg News May 7The difficulties faced are “unprecedented”, and the US$16.2 billion acquisition of the American luxury jewelry brand Tiffany, originally scheduled to be completed in the middle of this year, will also be delayed until the end of the year. As China’s luxury goods market gradually recovers, LVMH begins to pin all its growth hopes on the Chinese market.
Bernard Arnault is known as the godfather of luxury goods in the world
Let us get to know this new richest man in the world, who is also known as Bernard Arnault, known as the godfather of luxury goods in the world.
Arnault is the head of LVMH, the world’s largest luxury goods group. He is known as the “Pope of Fashion”, the Napoleon of the boutique industry, and the godfather of luxury goods in the world.
Born in 1949 into an industrial family in France, he graduated from Ecole Polytechnique in Paris in 1971 and entered the Ferret-Savinel construction company founded by his father as an engineer.
In 1981, Bernard Arnault went to the United States to develop his career, and returned to France in 1984. At that time, Dior was in a period of crisis. Bernard Arnault mortgaged his family business and acquired Dior. Afterwards, Bernard Arnault became the chairman of the board of directors of Dior and started his own luxury goods empire. road.
In 1987, led by the Bank of France, the world-famous leather goods company Louis Vuitton merged with the wine family Moët Hennessy to form LVMH. Xuan, full name LVMH Moët Hennessy Louis Vuitton SE.
In October of that year, the stock market crashed, and Arnault acquired LVMH’s shares at a very low price. Through Dior, Arnault quickly controlled 43% of the LVMH Group’s shares, becoming The largest shareholder.
After taking over LVMH, he combined his Louis Vuitton (LOUIS VUITTON) with Moet (MOET) and Hennessy ( HENNESSY) merged to form today’s LVMH empire.
Bernard Arnott’s aggressive acquisition methods have frightened the industry.
In the following 30 years, LVMH, under the leadership of Arnault, “swooped in” and acquired a large number of luxury goods when the economy fell into a trough or the company had internal conflicts. Brand, it has become the world’s largest luxury goods group today, owning 75 luxury brands including Louis Vuitton, Céline, Givenchy, Fendi, and Kenzo.
Bloomberg Business Weekly news, Louis Vuitton designers are targeting Millennials. The luxury brand giant is trying to attract younger buyers.
According to Bloomberg reports, Chinese consumers’ demand for Louis Vuitton luggage and Hennessy Cognac has greatly boosted LVMH Group’s sales, which makes the international trade environment increasingly tense. LVMH’s stock price not only rose sharply.
According to Hurun data in 2017, half of LV’s global sales are bought by Chinese. According to data from that year, China’s luxury goods sales reached RMB 142 billion (approximately US$22.07 billion) in 2017.
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